Glossary / Default Alive in Startups
In the context of startups, the term "default alive" refers to a company that is able to sustain itself and continue operating without the need for external funding or investment. It means that the startup is generating enough revenue to cover its expenses and is not reliant on outside capital to survive. Being default alive is often seen as a positive attribute for startups, as it indicates financial stability and a sustainable business model. It allows the company to have more control over its operations and decision-making, without being beholden to investors or facing the pressure to constantly raise funds. Startups that are default alive are typically able to focus on long-term growth and profitability, rather than short-term survival. They have the freedom to invest in product development, marketing, and scaling their operations without the constant worry of running out of money. However, it is important to note that not all startups can or should aim to be default alive. Some industries or business models may require significant upfront investment or have a longer path to profitability. In such cases, seeking external funding may be necessary to fuel growth and achieve success.