In this video, we look at the concept of being Default Alive or Default Dead for Startups. Knowing whether your startup is Default Alive or Default Dead is crucial because it helps you understand how much time you have left before running out of money. Time is everything - it gives you the opportunity to change things and get to a more desirable state.

We also discuss the concept of Default Investable, which is where founder and investor interests may not align. Investors want to invest in startups that have the right balance between growth and profit, whereas founders may prioritize profit. However, being Default Alive may not necessarily mean a startup is investable, the opposite is probably more likely.

The term was coined by Paul Graham, Co-Founder of Y-Combinator, back in 2015. Essentially, it refers to whether a startup will survive based on its current growth rate and expenses, assuming it doesn't raise any more money.

Finally, we discuss the importance of understanding where your startup is on the Default Alive/Dead graph, particularly in times of market uncertainty. It is essential to have some money in the bank to give you time and to move quickly if needed. Knowing where you are and how much time you have can make all the difference.

Paul Graham Blog Post:
http://www.paulgraham.com/aord.html

Growth Calculator:
https://growth.tlb.org/

Hunter Walk Medium post:
  / the-most-important-concept-of-2022s-startu...  

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