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The time and cost to do an S-1 is massive and it can reveal embarrassing facts that lower the company's valuation, as in the case of WeWork.

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Which is, of course, exactly what you want. These rules exist because charlatans bilked a lot of consumers out of a lot of money. The financial industry will do this consistently because the incentives are obvious. There has to be some external force slowing down the fraud.

>> These rules exist because charlatans bilked a lot of consumers out of a lot of money

The rules are made by the "deep state" to serve the establishment.

On a more serious note these rules/regulations/processes also deny access to capital to startups. It's not really that easy or cheap to go public on a stock exchange. People should do their due diligence before to invest in stocks anyway, right?

How exactly does one do due diligence without a substantial amount of disclosure to study?

It's the "embarrassing facts that lower the company's valuation" that matters for a billion dollar offering. The few hundred thousand dollars of legal costs aren't the issue here.

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