Cognitive Scaffold

Preparing your thinking workspace

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MENTAL MODEL · M1488

Default Alive

Default Alive
BusinessHigh supportEconomics
Included
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Refers to whether, assuming no future funding is raised, the company's existing funds plus expected revenue are sufficient to support the company in achieving profitability. If so, it is Default Alive; if not (Default Dead), your fate is in the hands of investors.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

Take control of your destiny. During economic downturns, both individuals and companies must adjust to 'Default Alive' mode. Cut expenses until your survival does not depend on external infusions (such as loans, financing, or parental support).

anchor

Anchor fast decisions

Paul Graham proposed that startups are either 'Default Alive' (can become profitable without further funding based on current burn rate) or 'Default Dead' (need continuous funding to survive), used to judge health.

MINIMUM ACTION

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Source support: Explicit

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    paulgraham.comhttp://www.paulgraham.com/aord.htmlZH · Explicit
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