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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

There’s another issue I can add to your list of things to be aware of – information rights. They have listed forward revenue figures that are highly questionable and bring the issue of SEC oversight to my mind. How founders get screwed on convertible notes. Let me be clear about this. But here’s the thing.

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What are the regulatory barriers preventing the emergence of a liquid market for equity in seed stage startups?

Gust

But by far the biggest issue is that the very essence of public markets (and what makes them “public”) is that the SEC mandates an enormous amount of transparency, including complete quarterly financial statements, complete publication of the company’s cap table including all significant shareholders, and so forth.