---
title: "Are You Default Alive?"
section: "Operational Excellence"
sectionId: "operational-excellence"
date: "2026-05"
---

## What Does "Default Alive" Mean?

"Default alive" was coined by Paul Graham in a [2015 essay](https://www.paulgraham.com/aord.html). It means your startup can reach break-even or profitability on your current runway — without raising any additional capital.

Being default alive puts you in the driving seat as a founder. **You only need to raise money if you want to**, not because you have to. That changes every investor conversation you have.

## Default Dead

The opposite — **default dead** — means you need at least one more round of funding before you can become profitable. If you never raise again, you will eventually run out of money and die.

If you are default dead, your mindset must shift: *How do we save the company?*

## The Pegasus Startup

In September 2019, Jason Calacanis coined the term **Pegasus startup**:

> "A Pegasus startup is one that is so profitable that it is able to use its profits to soar so high, that it skips multiple rounds of funding."

Examples from the LAUNCH portfolio: **Calm** and **Fitbod**.

A Pegasus is the ultimate default alive — so profitable that external funding becomes optional at every stage.

## Check Your Status

Use this calculator to find out whether your startup is default alive or default dead: [growth.tlb.org](https://growth.tlb.org/#)

Input your current revenue, growth rate, and burn, and it will tell you the trajectory you are on.