Many startup founders seek publicity to attract investors and customers. But some take a different path: operating in stealth to protect intellectual property (IP), control market timing and avoid competitive attention before launch.

A stealth startup strategy requires operational sophistication and industry credibility—which explains why it’s dominated by veterans from major tech companies or early employees at other startups rather than first-time founders.

“A lot of these founders are coming out of big tech firms where they were maybe employee No. 2, and now they’re launching their own thing,” said Fernanda Baker, Executive Director in Startup Banking at J.P. Morgan. “They’re in highly competitive spaces and don’t want their competitors to know what they are building.”

Baker offers tips for founders looking to operate a stealth startup.

What is a stealth startup?

A stealth startup is a company that deliberately operates with minimal public visibility during its early development stages. Unlike traditional startups that seek publicity to attract customers and investors, stealth startups intentionally limit their public presence to protect intellectual property and maintain competitive advantages.

It’s important to note that the term “stealth startup” describes a set of tactical approaches in early stages rather than a fundamentally different business model. Once stealth startups reach later stages, they still need to solve customer problems, generate revenue and scale operations—these companies simply choose to delay public visibility while building their foundation.

Stealth startup founders typically avoid creating websites, issuing press releases or discussing their products publicly. Instead, they operate under generic company names, require employees and partners to sign strict non-disclosure agreements and conduct business through private networks and trusted relationships.

This stealth-mode approach is most common in highly competitive sectors such as artificial intelligence (AI), cybersecurity, biotechnology and deep tech, where first-mover advantages are critical and development cycles can span multiple years.

The benefits of operating in stealth mode 

Stealth mode isn’t simply avoiding publicity—it’s strategically controlling information about your company’s operations, product development and market plans until you’re ready to launch.

This stealth startup strategy delivers three key advantages: intellectual property protection during critical development phases, narrative control at market entry and competitive advantage through delayed visibility. For stealth startup founders, these benefits can mean the difference between market leadership and playing catch-up.

The generative AI sector exemplifies this trend, where experienced stealth-mode startup founders frequently leave more mature companies to build competing technologies without alerting their former employers or colleagues.

“It’s definitely creating a fertile ground for those AI tech executives to come out of their companies and build their own business,” Baker said. “And they can’t talk about what they’re building, or else their old company is going to try to build it themself in-house.”

Operational strategies for stealth founders 

Stealth startup operations require trusted networks and operational discipline—explaining why this strategy works well for experienced stealth mode startup founders with established industry credibility.

Stealth mode lets startups put more bandwidth into product development. But that narrower focus in early stages can create operational blind spots.

“The pitfalls might be lack of scrutiny because the team is so small,” Baker said.

While traditional startups dedicate resources to publicity and fundraising, stealth mode startups often defer essential operational infrastructure. Technical founders laser-focused on R&D may treat legal, tax and banking requirements as tasks to handle later, until suddenly they're urgently needed for fundraising or launch.

“When these executives leave their roles to launch stealth startups, they know they need a strong legal team and tax and banking relationships. So that’s why they come to us,” Baker said.

Experienced founders operating in stealth mode leverage existing networks to recruit talent discreetly, often targeting specific individuals from previous companies, prestigious academic programs or industry connections.

“It’s one person calling another and saying ‘I know this guy who does phenomenal work at another company—he’s a monster. Let me give him a call.’ And then the magic happens,” Baker said.

Stealth startups often begin with a small team of co-founders. During the early pre-revenue phase, this group can support itself with savings from previous well-compensated roles. Other stealth startup groups form through accelerators and rely on the accelerator for capital.

Beyond assembling talent, these founders need investor capital—but fundraising in stealth requires leveraging industry connections rather than broad outreach.

“They have to find investors who already know their track record and trust they’re building something significant,” Baker said. 

Banking solutions for stealth startups 

J.P. Morgan Startup Banking regularly supports stealth-stage clients, helping ensure founders and investors that business is conducted with confidentiality. This approach is critical for stealth mode startup operations where discretion can determine competitive success.

“The trust is really there with the stealth founders when they work with us,” Baker said.

Her team draws on resources across J.P. Morgan to help stealth founders scale their operations as they approach their launch. “It’s not just a team of three, four or five friends who trust each other anymore,” Baker said. “Their needs become more complex, and we can guide them throughout that growth.”

For stealth-mode startups transitioning to public launch, having established banking infrastructure becomes essential for managing increased transaction volumes, payroll complexity and regulatory requirements that come with scaled operations.

The bottom line 

Although they face similar operational challenges as traditional startups, stealth startup founders want to execute without public visibility. This stealth mode startup approach requires experienced founders with technical expertise and extensive networks of trusted industry contacts.

Established relationships become essential infrastructure—helping stealth startup founders assemble talent, secure funding from connected investors and establish banking relationships with dependable, experienced institutions including J.P. Morgan. For founders considering this strategy, the operational foundation matters as much as the product vision.