Let’s face it; everybody has an idea for a business at least once in their lives. Very few people actually act on this idea, and even fewer have a genuine market impact. Your big idea is never enough. It’s about having the right idea at the right time, working with the right people to communicate it in the right way.
One strategy for startups is running in ‘stealth mode’. Stealth-mode businesses are becoming increasingly popular, with Sifted’s analysis of LinkedIn data showing 3x the number of people working in a stealth startup in 2023 compared to 2021.
A startup run in stealth mode refers to a deliberate strategy where a business hides information about its product, technology or business model to the public. Instead, it operates in relative secrecy, revealing information only to a select group of people – investors, strategic partners and employees.
There are two types of stealth mode strategies: ‘total stealth’ and ‘in-company stealth’. Total stealth is full James Bond mode. In-company stealth generally refers to established businesses who are launching a new offering.
Following this path offers several advantages that may increase your chances of success.
There is no one-size-fits-all solution. But there are specific scenarios where a stealth-mode approach may be the secret ingredient: highly original disruptive innovations, saturated markets, complex solutions, and rebrands of an existing business.
Running a startup in stealth may actually help you attract investment. Augustine Sayer, a general partner at Paris-based VC ONVI Capital, says building a company in secrecy can increase the number of VCs getting in contact: “When someone puts themselves in stealth mode they’re creating FOMO.”
