Definition · burn
Default alive vs default dead
Default alive vs default dead is Paul Graham's test for whether a startup can reach profitability before it runs out of cash at its current growth and burn rate. For default alive vs default dead, the useful boundary is the cash source, timing horizon, owner, liquidity exposure, and decision before options narrow.
Also known as default alive, default dead, default alive or dead
Why it matters
Understanding default alive vs default dead matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo computes the trajectory toward or away from default alive from live growth and burn, and shows which drivers are moving the line.
In practice
Liquidity example
Finance teams use default alive vs default dead when they need to understand cash timing before a decision is made. A team might compare expected receipts, payroll, vendor payments, and debt obligations to decide what action is needed this week.
Pluvo example
Pluvo computes the trajectory toward or away from default alive from live growth and burn, and shows which drivers are moving the line.
In practice, teams should define default alive vs default dead with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding default alive vs default dead matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo computes the trajectory toward or away from default alive from live growth and burn, and shows which drivers are moving the line.
A strong workflow for default alive vs default dead separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo computes the trajectory toward or away from default alive from live growth and burn, and shows which drivers are moving the line.
FAQ
What does default alive vs default dead mean?
Default alive vs default dead is Paul Graham's test for whether a startup can reach profitability before it runs out of cash at its current growth and burn rate. For default alive vs default dead, the useful boundary is the cash source, timing horizon, owner, liquidity exposure, and decision before options narrow.
How do you know if your startup is default alive?
To use default alive vs default dead, start with the decision, then confirm the source data, timing, calculation logic, and owner. The analysis is strongest when a reviewer can trace the answer back to the records that produced it.