Yes, that is true as the larger investment managers would never touch an OTC stock, and most have a time line of previous fully reporting requirements, as well as a minimum pps such as 3 - 5 dollars per share. But, the hedge funds, and smaller investment groups can and will get in much sooner.
It all comes down to avoiding as much risk as possible, and having a proven track for ability to make money. Other things involved as well, but, basically, that's it. GLTA