> it when the company later has excess funds The company didn't have "excess funds". When you do a raise, you tell investors how you're going to spend the mon

> it when the company later has excess funds The company didn't have "excess funds". When you do a raise, you tell investors how you're going to spend the money. There may be a lot of money in the bank, but it's not "excess", it's merely not yet spent. If he didn't disclose that $100k before the investment, he took it from what he told investors that the money would go for.