Ten Types of Hair on Early-Stage Deals

In investor parlance, there is an oft-expressed and colorful turn-of-phrase called "hair on the deal," which immediately signals the kiss of death for a company's investment prospects. There are, of course, grammatical and regional variations on this expression but the implication and import are always one and the same: that the company in question will not get funded. Among investors discussing a deal, the mere whiff of this hirsute quality will often suffice to end a discussion of the company's merits and shortcomings. In this post, however, I intend to delve into exactly what the range of characteristics exhibited by a company and/or its founders are that embody this dreaded state of 'hairiness.'

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