But this isn't a moderately large company, and while it is not possible to get the full story from just one account, if one is to accept the OP's account as fact, then it is fairly poor form being shown from those running the startup.

By not being honest (or blunt) enough they've basically left this poor guy in total limbo. If you are going to mess with someone's life the minimum required in return is 100% honesty and unambiguous communication. If not now, as soon as possible (in the event that funding has fallen through and they don't want anyone to know right now).