Default Alive vs Default Dead

Whether a startup will reach profitability on current trajectory (alive) or run out of money first (dead).

This framing asks whether, at current growth and burn, a startup would become profitable before cash runs out. Knowing your status focuses decisions on extending runway or accelerating growth, and is a sobering, clarifying lens for founders.

Examples

A founder realises they are default dead and cuts burn. — Improving margins moves a startup to default alive.

How it relates to The Startup Foundry

The Foundry helps founders understand their trajectory and make the moves that keep them investable and alive.

Related terms

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