Startup stages & company states · Core
Shutdown
Also called: wind-down
ELI5
The company stops operating.
Used in conversation
“The board is comparing a sale with an orderly shutdown.”
Definition
The planned or forced cessation of a company's operations.
Here “Shutdown” means: The planned or forced cessation of a company's operations.
Pitch context
You will see “Shutdown” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches startup stages & company states.
Why it matters: It helps a reader interpret startup stages & company states without confusing the measure, decision, role or evidence being discussed.
Connected terms
- Wind-downThe search label “wind-down” can route to both entries.
Sources & evidence · 5
Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossarySupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsSupporting source family · institutional · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16