Zombie startup
Also called: zombie company
ELI5
A startup still operating but unlikely to grow or exit meaningfully.
Used in conversation
“The fund is deciding whether to keep supporting the zombie startup.”
Definition
Informal term for a company that survives but lacks meaningful growth, exit prospects or a clear route to investor returns.
Here “Zombie startup” means: Informal term for a company that survives but lacks meaningful growth, exit prospects or a clear route to investor returns.
Pitch context
You will see “Zombie startup” 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.
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