# Default alive

Concept · [Business and metrics](https://ecosystem.samcarlton.com/business)

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](https://ecosystem.samcarlton.com/profit) before its money runs out. If not, it is default dead.

**For example:** A company has 12 [months of runway](https://ecosystem.samcarlton.com/runway). At its current growth, [revenue](https://ecosystem.samcarlton.com/revenue) will cover costs in month 9. On those numbers it is default alive.

## Connects to (4)

- [Runway](https://ecosystem.samcarlton.com/runway): How many months your company can keep going before the money in the bank runs out, if spending stays the same.
- [Burn rate](https://ecosystem.samcarlton.com/burn-rate): How fast your company is using up its cash, usually counted per month.
- [Break-even](https://ecosystem.samcarlton.com/break-even): The point where the money coming in equals the money going out, so the business is no longer losing money.
- [Profit](https://ecosystem.samcarlton.com/profit): What is left of your revenue after every cost is paid.

Map view: https://ecosystem.samcarlton.com/default-alive