Zombie Startup
Definition
Zombie Startup: A zombie startup is a company that continues operating but has no realistic path to significant growth or a successful exit. These companies typically generate enough revenue to survive but not enough to attract new investment or achieve meaningful scale. Founders and investors are often trapped because shutting down seems wasteful, but continuing consumes resources without upside.
Example Usage
“After the failed Series B, we realized we'd become a zombie startup - profitable but stuck at $2M ARR with no path forward.”
Common Misconceptions
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Pivot
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