If I understand correctly I believe they are pointing out that after a certain point in raising funds they will be forced to go public because they will have too many investors.
Elon seems pretty bent on having SpaceX do regular trips to Mars and back before IPO. I would guess that he will ensure that SpaceX stays within the private company rules so as not to go public until the Mars trips are commonplace.
Also, does this mean that SpaceX could raise funds indefinitely without going public as long as they come from the same source?
And those 35 sources can do credit swaps and various other kinds of deals with other sources...
Is this true, I heard it a while ago: They will be forced to release the same financial information to the public as public companies do once they have too many investors however they do not have to go public in the sense of floating their stock.