Should You Startup in Stealth?

Starting up in stealth mode is a mooted business approach. So we caught up with Amandine Flachs to find out why she started up in stealth...

As the name suggests, “stealth mode” empowers a business to operate in secrecy, allowing for focussed product development whilst foregoing any unwanted attention.

This was perhaps most famously achieved by Firefly, the ad tech company, who drew sensation headlines in December 2018:

“Firefly Emerges From Stealth With $21.5M In Funding To Put Billboards On Top Of Uber And Lyft Cars”

Firefly’s rationale for stealth mode was inspired planning. Their product turns ride-sharing cars into moving billboards, installing directly into the typical triangle-shape advertisement board that sits on top of taxis in NYC and California. The smart bit is that the ads roll and they are location-specific, allowing for massive targeted revenue potential.

Presumably, the reason Firefly opted for stealth was because they were entering an environment loaded with heavyweight startups who would have loved to have had this idea. 

And if they Uber or Lyft caught wind of this idea they would have delivered it far quicker than any new startup could have done.

However, the obvious downside to stealth mode is that essential feedback loops from potential customers, competitors and colleagues are cut off. How can you build a product that the market needs when you won’t allow the market to inform the build of your product or service? 

The pros and cons are in the balance so we caught up with startup expert and recent founder Amandine Flachs about why she recently started in stealth and, also, why she came out of it....

Hey Amandine, let's talk about your experience of stealth mode. What are the pros?

There are many: it gives you time. Time to experiment on the product. Time to figure out the language you want to use to describe it. And time to plan a launch strategy to unveil what you do to the world.

I also like that when you share information with a few close people - maybe early investors or adopters - it creates a sense of secrecy. The people you talk to feel chosen to be let into your bubble. That’s nice.

That is nice. Why did you start up in stealth?

Basically, we needed to test some technical assumptions before telling everyone what we were planning. Our core technology relies on machine learning, but this is not the only thing that defines what our product is and the value it brings to our end users. During the first few months, being in stealth gave us some room to breathe and the time to speak to our target audience before thinking about the brand, narrative and wording to use.

What are the cons?

For sure, it is harder to get relevant contacts if people have no clue what you are working on. I’m a big fan of the startup community and I believe in serendipity: good things happen when you share your ideas! 

How does one come out of Stealth?

Haha good question. Being in stealth leads to many more questions...

How do you know it is time to come out? Do you need to wait for a big announcement such as a funding round or a product launch? Or will you simply have a gut feeling that it is time? 

So, why did you come out of Stealth?

Well, I wouldn't say we are public yet since we haven't released our website (it's coming soon, though, I promise!).

But my CTO Alexandre Borghi and I have recently updated our Linkedin profiles to be co-founders at WildMeta.

The reason? I have been on several podcasts and panel discussions, and, to be honest, I reached a point where I found it didn't make sense anymore to remain in stealth.

I want people who are interested in what we do to be able to find us, reach out, follow the company's LinkedIn page if they want to get more info… 

Awesome, thanks so much Amandine.

Pleasure.

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Should You Startup in Stealth?
The Tectonic View

Starting up in stealth can be a smart move, so long as you take an approach like Amandine and it doesn't affect your ability to identify your target customers and speak to them.

When you speak to potential customers you do not have to say anything about what you're building. Actually, you only have to ask them questions. And listen.

You should remember to also not ask them what they “want?” Instead, focus on their problems.  

Henry Ford once famously said:

“If I asked people what they wanted, they would have said, “FASTER HORSES!”

Ford’s genius was that he asked people about their problems, which was slow, unreliable transport. 

The rest, as they say, is history.

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If you’d like to hear more from Amandine she recently appeared on the Everyday Startups podcast with Dan and Nana Parry.