The smarter thing to do, and what I do when I’m interested in making a larger investment in a company, is ask to see their numbers. I need them to show me at least a three- or four-year financial history before I consider investing. Anything less is too risky. And if they don’t have a structure for reporting that lets me look at their historical financials and see growth, I’m out. I also need to have confidence that once I put money in, I’ll get updated financial reports every month. If that doesn’t exist I stay away from the investment.
