Short version : Should we allow our Competitor, who has more resources than we do but an inferior product (of course!!;) to try our app in closed beta or is it too risky since they lost customers to us recently?
Not enough information to go on here. Without having some idea of what the upside is to you, this seems to be far more risky than worthwhile.<p>Now, if they have an inferior product, but a hugely us period bank account and you think this is a due diligence precursor it <i>might</i> be worthwhile. But more then likely even in that case you would be better off doing a garden path demo TO them, have one of your employees walk them through the highlights, not give them a full app to play with.