out-of-the-garage

Silicon Valley slang for a company that was developed in somebody's garage (or on someone's kitchen table) but has now moved into its first real office and is considered professional. The term arose from the fact that approximately 12 percent of Internet start-ups are actually started "out of garages" or in residential areas.

Historical perspective: Hewlett-Packard is a well-known example of a company founded by two men, William Hewlett and Bill Packard, who started by working out-of-the-garage. Same with Apple, Steve Jobs and Steve Wozniak started Apple out-of-the-garage too.