What is ‘ramen profitable’?
Ramen profitable is a Paul Graham–coined term describing a startup that has reached the level of revenue or profitability sufficient to cover the founders’ basic living expenses — historically, enough to live on ramen noodles. Ramen profitability is a meaningful psychological and financial milestone that gives founders the freedom to focus on building rather than fundraising.
While not necessarily a long-term strategy, ramen profitability removes the urgency of dilution from external funding and signals operational discipline to future investors.