>>90634594I am going to simply a lot of things, but here's the gist of the whole issue and why most start-ups turn to shit.
You have an idea for a great product or service, so you create a start-up company to start making that product or service.
Just one issue: You are too fucking poor to get business started.
Luckily there are venture capitalists out there, wealthy entities willing to give money to start-ups with good ideas in exchange for "a return of their investment". Now what is that return exactly? It's not just a simple loan, but a "purchase" of shares of the company. They give you cash to spend on your business in exchange for them now owning a part of your company.
With funds secured, you start opening up for business. Your customers love your product and your company grows, which also includes its market evaluation. Remember those shares from earlier? Those are now worth more money too.
At some point, the venture capitalists want their return of their investment. The shares they own in your company are now worth a lot of money on paper, but they can't really sell it to anyone easily. So what do you do now as a start-up owner?
If you somehow managed to earn enough funds yourself, you can just buy out the shares of the venture capitalists and maintain full control over the company. This almost never happens because it requires a lot of money.
Alright, you don't have that much money, but you still need to pay those venture capitalists. Now what?
If you just want to retire, you can just sell the company. There are enough wealth management funds willing to buy profitable companies out there. You just sell your shares to them, giving you the cash to pay those investors, and take the rest home to enjoy life. Maybe create another start-up down the line.
But what if you do want to continue running the company? You go public and list the company on the stock exchange. The venture capitalists can now sell their shares on the open market to get their investment back. Or just keep them to get an even bigger return from them down the lane. So what's the downside then?
For one, you are now required to disclose the financials of the company. If those look good, the stock price goes up, and if they don't, they go down. Shareholders can now also leverage their shares to influence corporate decisions. Either directly, with voting power associated with their shares, or indirectly via threatening to pull out their investment which would crash the stock price.
Cover, and Yagoo in particular is in a very bad position right now as he doesn't own an absolute majority of shares. Yagoo alone can't make executive decisions if everyone else tells him to fuck off. Worse yet, if he tries to do so, others will simply vote for him to be removed from office. He is forced to go down on his knees and suck shareholder cock or risk losing his remaining ability to manage Hololive.
