[johnvschmitt]

I'm sorry to see evidence of a rare bad actor, but that doesn't warrant holding back critical data from the many good actors who want to invest.

Simple P&L statement & balance sheet: Provide it to all investors who ask. That's just basic common sense.

Would YOU invest in a company that wouldn't even tell you these basic financial metrics? Would this author invest without it?

And, I've seen far too many "startups" who don't even know what simple financial things are (balance sheet, P&L, cash-flow, margin), and that illiteracy is NOT going to end well.

So, the pain may be real, but the advice given is not IMO correct.

[DevX101]

Agreed 100%. Suster is way off base here with his conclusions. Any investor worth his/her salt will need to review basic financial info before putting money down.

If you can't trust an accredited investor with your financial data then don't take their money.

And if that investor inappropriately divulges confidential information, then take it up with a lawyer as it seems the company in question is in the process of doing right now.

[nedwin]

He's not arguing against disclosing financials during the course of raising money. He's against giving minority shareholders continued access to financials. aka information rights.

Asking up front is one thing, being obligated to provide to a minority shareholder ongoing is another entirely.