Zombie Startups: Should They Shut Down or Keep Going?

Zombie Startups are startups that aren't on the verge of dying, but they aren't really growing either. A zombie startup is caught somewhere between the living and the dead. If you are a founder or employee of a zombie startup what do you do? In this episode of Dalton + Michael, the two discuss what the options are if a startup is a zombie: shut down, get acquired, or keep going with a new sense of purpose and direction. Dalton + Michael is brought to you by @Standard_Cap Dalton Caldwell on X: https://x.com/daltonc Michael Seibel on X: https://x.com/mwseibel

Michael SeibelhostDalton Caldwellhost

Mar 30, 202617mWatch on YouTube ↗

EPISODE INFO

Released: March 30, 2026
Duration: 17m
Channel: Dalton + Michael
Watch on YouTube: ▶ Open ↗

EPISODE DESCRIPTION

Zombie Startups are startups that aren't on the verge of dying, but they aren't really growing either. A zombie startup is caught somewhere between the living and the dead. If you are a founder or employee of a zombie startup what do you do? In this episode of Dalton + Michael, the two discuss what the options are if a startup is a zombie: shut down, get acquired, or keep going with a new sense of purpose and direction. Dalton + Michael is brought to you by @Standard_Cap Dalton Caldwell on X: https://x.com/daltonc Michael Seibel on X: https://x.com/mwseibel

SPEAKERS

Michael Seibel
host
Y Combinator partner and startup advisor; co-founder of Justin.tv/Twitch.
Dalton Caldwell
host
Y Combinator partner and startup advisor; founder of App.net.

EPISODE SUMMARY

In this episode of Dalton + Michael, featuring Michael Seibel and Dalton Caldwell, Zombie Startups: Should They Shut Down or Keep Going? explores how to escape zombie startup limbo: shut down or pivot radically A zombie startup has money, customers, and payroll coverage but lacks meaningful growth, energy, and urgency, often replacing momentum with process and planning.

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