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MS

Michael Seibel

05/07/22

@ Y Combinator

When you're default dead, failing to raise funds can lead to the end of your business, while default alive gives you more margin for error.

Video

YC

Save Your Startup During an Economic Downturn

@ Y Combinator

Save Your Startup During an Economic Downturn

05/07/22

Related Takeaways

MS

Michael Seibel

05/07/22

@ Y Combinator

When you're default alive, you have control over your company's future, unlike when you're default dead and reliant on outside funding.

JR

Jeremy Rossmann

06/20/19

@ Y Combinator

Understanding whether you are 'default dead' or 'default alive' is crucial for startup founders to ensure their company remains viable.

DC

Dalton Caldwell

05/07/22

@ Y Combinator

The concept of 'default alive or default dead' forces founders to be honest about their startup's survival.

GR

Geoff Ralston

12/15/20

@ Y Combinator

Startups should focus on being 'default alive', meaning they should aim to survive without needing to raise more money.

GR

Geoff Ralston

12/15/20

@ Y Combinator

Startups should prioritize generating revenue as early as possible to ensure they can survive in uncertain conditions, which is a key aspect of being 'default alive'.

DC

Dalton Caldwell

05/07/22

@ Y Combinator

Default alive means I may be burning money today, but my growth rate is high enough to become profitable before my bank account goes to zero.

MS

Michael Seibel

05/07/22

@ Y Combinator

Companies like DoorDash understood the concepts of 'default alive' and 'burn rate,' which allowed them to manage their finances effectively even in challenging times.

JH

Jensen Huang

06/24/11

@ Stanford Online

In the early days of a startup, survival is crucial; as CEO, you're either making money, saving money, or raising money.

MS

Michael Seibel

05/07/22

@ Y Combinator

Taking a significant hit to your growth rate can be necessary to achieve a sustainable business model, similar to how personal bankruptcy allows individuals to clear debts and start fresh.