The strategy is designed to protect intellectual property, limit outside scrutiny and preserve a competitive advantage until launch. Unlike most startups that seek early attention, a stealth company deliberately hides all aspects of its work.
Common characteristics include:
- Codenames and temporary names for internal projects or even the company itself, instead of permanent branding.
- Strict non-disclosure agreements (NDAs) required for employees, advisors and early partners.
- Minimal or placeholder websites, often showing only vague “coming soon” messaging.
- Little to no social media presence and limited press mentions.
- Team members with vague LinkedIn profiles, sometimes omitting the company name entirely.
- Patent filings that hint at in-progress technology, without tying back to a public brand.
- Private fundraising and networking with investors or potential customers, usually under confidentiality agreements.
Operating the meaning of stealth mode is not secrecy for secrecy’s sake. It’s a strategy.
Why do startups remain in stealth mode?
Startups choose stealth mode to create space for focused building and to protect their edge before launch. Common reasons include:
- Protecting intellectual property — Sensitive inventions, algorithms, or biotech discoveries often require more development time (and patent filings). Staying quiet reduces the risk of competitors filing first.
- Preserving a competitive advantage — Operating under the radar makes it harder for rivals to copy features or shift their roadmap in response.
- Product readiness and iteration — Founders can refine an MVP, test pricing and messaging, or explore design changes without the pressure of public scrutiny. Many stealth teams work with a small set of early customers or partners under confidentiality to gather targeted feedback.
- Controlling market timing and narrative — Stealth allows founders to decide when to reveal their product and craft the story so launch day creates maximum impact.
- Fundraising and hiring strategy — Some investors are drawn to exclusivity, and a stealth pitch can spark urgency. The same applies to recruiting early teammates who want to feel part of something differentiated. For founders, these choices are best grounded in a clear business model, not just secrecy.
- Reduced noise and distraction — By avoiding the spotlight, founders can keep the team focused on execution instead of chasing perception or fighting early criticism.
- Anticipation and buzz — When managed well, secrecy builds curiosity. A reveal after months or years in stealth can generate outsized attention.
Risks of staying in stealth mode
Stealth carries trade-offs for founders:
- Validation delays: Without open testing, it’s harder to confirm market fit with real users.
- Fundraising friction: Some investors will want to validate a product with real data (users, revenue, etc.).
- Hiring challenges: Without a public brand, founders are mostly forced to recruit from smaller, personal networks. Even strong hiring strategies are shaped by timing and external conditions.
- Awareness gap: By staying in stealth, founders delay all the awareness-building they would otherwise accrue over months or years. When they finally emerge, they’re starting from a standstill. The launch needs to be big and memorable enough to make up for that lost time.
- Risk of misalignment: Too much internal iteration without outside feedback can lead to wasting months or even years building the wrong product.
When stealth mode makes sense
Operating in stealth is most useful when:
- Founders operate in industries where patents and research secrecy really matter, like in biotech or deep tech.
- The team already understands the customer problem and does not need broad early validation.
- The startup is building something they believe is truly disruptive and want to keep even the idea of the product out of the hands of competitors, like OpenAI’s early work on GPT-3, which was developed under wraps before its public release signaled a major leap in AI capabilities.
- Founders have strong networks for fundraising and recruiting co-founders, meaning progress won’t stall without publicity. For example, maybe they’re second-time founders and have these networks from their previous companies.
One example is a cybersecurity startup that deliberately operated under the temporary name Stellarite while refining its product. By protecting IP and pitching investors selectively, the team followed a careful path to product-market fit before scaling more broadly.
By contrast, startups that depend heavily on community engagement, open feedback, or viral growth often struggle in stealth.
Funding and hiring in stealth mode
- Fundraising: It’s more limited, but could also stir excitement. Startups in stealth often approach investors in smaller groups through their trusted networks. Pitches are often selective to investors who founders have a relationship with and trust the founder to execute on the vision they pitch — not necessarily needing the product in-hand to make an investment.
- Hiring: Recruitment often comes from co-founders’ personal circles or past experiences. Without a public-facing brand, job postings are rare, and confidentiality is emphasized. It really requires the ability to sell the company and its vision, which could limit the talent pool.
This reliance on trust makes stealth viable mainly for experienced teams with existing networks.
Transitioning out of stealth
Eventually, a stealth mode startup must emerge. The transition typically happens once:
- An MVP has been tested and validated.
- Key intellectual property protections are secured.
- A clear go-to-market strategy is defined.
Exiting stealth involves more than releasing a new product. Founders must create a compelling narrative, build brand recognition and quickly capture attention to make up for time spent in secrecy.
Figma stayed in stealth for nearly three years, but as Claire Butler recalls, the team chose to launch without its flagship multiplayer feature to build momentum and morale. The lesson: launching out of stealth is less about perfection and more about timing, positioning and rallying a community.
When Figma finally launched, this groundwork meant they weren’t starting from zero — their launch tapped into a ready-made audience eager to spread the word.