What is a ‘walking dead’ startup?
Walking dead is investor slang for a portfolio company that is effectively dead — no growth, no path to liquidity, no investor support — but has not formally wound down. Walking dead status differs from zombie in that walking dead implies imminent failure, while zombie implies indefinite stagnation.
Walking dead diagnosis triggers tough conversations: layoffs, asset sales, secondary share sales, acqui-hires or controlled wind-down. The legal frame includes director fiduciary duties as the company approaches insolvency and obligations under the Türk Ticaret Kanunu (Articles 376–377) or equivalent statutes.