What are the key reasons of starting out as a stealth startup? How does being a B2B or B2C startup influence the decision?

Lots of reasons, but to highlight a few:


  • Have a full-time job, don't want to get in trouble with your boss or send mixed signals about commitment
  • Still validating the idea, afraid of being embarrassed by friends / prospects who can connect you directly to the concept


  • On the cusp of something new that a more resource-rich group could pursue without you, therefore you want first-mover advantage
  • Rare: launch will be more effective if timed strategically (ie: http://Feedly.com pumping ads during Google Reader shutdown)


  • Businesses define needs, then find a product to suit them, then evaluate build vs. buy. If you start stealth and focus on product, you may win more 'buys' and lose fewer 'builds'
  • High barrier to entry, MVP not suitable for target segment


  • Consumers are fickle. High bounce rate if product doesn't clarify how it adds value. Private beta's may be the answer to this challenge
  • Thanks to social media, consumers now have a voice. They define your brand, not you. Stealth can help protect the brand you don't yet have