Default Alive vs Default Dead: Founder FAQ
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The most common questions founders ask about Paul Graham's default alive metric — how to calculate it, when to track it, and what to do when the answer is dead.
What does 'default alive' actually mean? A startup is default alive if, at current growth rate and burn, its existing revenue will cover expenses before the bank account hits zero. Default dead is the opposite.
How do I calculate it? Project monthly revenue forward using your recent growth rate, hold costs roughly flat (or on your hiring plan), and see whether the revenue line crosses the cost line before cash runs out.
How often should I check? Origami updates it weekly on a whiteboard. Monthly is the floor. Quarterly is too slow to react.
What if I'm default dead? Two levers: cut costs to extend runway, or raise growth rate. Fundraising is a third lever but it's not a fix — it's a delay.
Does this apply if I haven't raised yet? Yes. Pre-revenue, you're default dead by definition; the question becomes how quickly you can get to a paying customer.
Is 'three near-death moments' really normal? For early startups, yes. The playbook treats it as baseline, not a crisis.
Where does this fit in a broader operating cadence? Alongside weekly retention, shipping cadence, and honest co-founder reviews. See more founder frameworks on the Silverberry AI Blog.