Startup traction, burn & capital efficiency · Working
Default dead
ELI5
The company will need more money before it can become profitable.
Used in conversation
“The board wants a plan while the company remains default dead.”
Definition
A startup expected to exhaust cash before reaching profitability under plausible assumptions.
Here “Default dead” means: A startup expected to exhaust cash before reaching profitability under plausible assumptions.
Pitch context
You will see “Default dead” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches startup traction, burn & capital efficiency.
Why it matters: It helps a reader interpret startup traction, burn & capital efficiency without confusing the measure, decision, role or evidence being discussed.
Sources & evidence · 5
Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossarySupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsSupporting source family · institutional · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16