What should founders do if they are Default Dead?

If you are Default Dead, you must not assume venture capital will save you. You must take immediate operational action: accelerate revenue growth, reduce expenses, or increase pricing to alter your trajectory before your cash runway drops below 6 months.

What is the "cash trough" in a Default Alive calculation?

The cash trough is the lowest dollar balance your bank account will drop to right before compounded monthly revenue matches and exceeds your monthly expenses.

Y Combinator Viability Algorithm

Default Alive vs. Default Dead Calculator

Implement Paul Graham’s famous startup survival test. Calculate whether your current month-over-month revenue growth will reach break-even before your bank account reaches zero.

Default Alive Financial Inputs

Current Cash Balance ($)

Monthly Revenue ($)

Monthly Expenses ($)

Monthly Revenue Growth (%)

Monthly Expense Growth (%)

Paul Graham Framework Verdict

Default Alive

Based on your 8% monthly growth rate, your revenue will surpass monthly expenses in Month 13 with $58,817 remaining in the bank. You can reach profitability without needing more capital.

Profitability Crossover:Month 13

Lowest Cash Trough:$58,817

Mga Tool sa Pananalapi

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Proyeksiyon ng pera para sa maagang yugto ng mga kumpanya na may compound growth at VC rounds.

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Sukatin ang gross at net burn rate, ang bilis ng pagkaubos ng pera, at ang SaaS Burn Multiple efficiency.

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Sukatin kung paano ang suweldo at buong buwis ng bagong tauhan (1.15x–1.30x) ay nagpapapaikli sa runway.

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Default Alive Frequently Asked Questions

Everything you need to know about cash runway, burn rates, and financial planning.

Coined by Y Combinator founder Paul Graham, a startup is "Default Alive" if, assuming their current revenue growth rate and expenses remain constant, their existing cash balance is sufficient to reach profitability before running out of money. If not, they are "Default Dead".