A stealth stage startup is a type of startup that is in development but has yet to break out into the public. This type of startup takes a much more cautious, high risk approach to developing new products or services. Startups typically stay in stealth stage until their product or service is ready for launch, or until they are able to secure a certain level of funding.
At this stage, the company works on developing the product or service without publicizing the venture. During this time, the startup may work with a few key people and investors in order to create a successful product or service.
The benefits of the stealth stage startup are that it allows the business to remain largely unknown until the product is more fully developed, in order to keep competitors from jockeying for opportunities to investing in the venture or to offering competitive services or products. This ultimately gives the startup an opportunity to refine the product or service and gain early adopters who will help to promote the venture.
At the same time, the downside of the approach is that it can be difficult to determine progress and success, as information is tightly guarded and the product or service can take a significant amount of development time. The long development cycle also makes it hard to know when to start fund raising, accept investments and make strategic decisions.
Overall, the stealth stage approach is a high risk strategy that can create great reward if the startup succeeds in creating a working product. Ultimately, each startup will have to decide for themselves if the benefits outweigh the downsides.