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.

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