Concept · Business and metrics
Default alive
Also called: default dead, default alive or default dead
A phrase from investor Paul Graham. A company is default alive if, on its current costs and growth, it will reach profit before its money runs out. If not, it is default dead.
For example: A company has 12 months of runway. At its current growth, revenue will cover costs in month 9. On those numbers it is default alive.
Connects to 4
- Runway Concept
- Burn rate Concept
- Break-even Concept
- Profit Concept