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

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

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'.

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.

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

As a founder, you might reach a moment when you realize your startup is going to fail, and it's crucial to face that truth instead of living in denial.

Founders often ignore the reality of their startup's potential failure, which is an uncomfortable truth to discuss.

It's challenging for founders to return to reality after being immersed in a dream of success, especially when the market changes unexpectedly. Founders must confront hard truths about their startup's reality instead of living in denial about their potential success.

At Y Combinator, we emphasize the importance of not dying as a startup, which means confronting the beliefs that could lead to failure.