Fang Chen's answers and actions simply challenged his understanding of the development of modern enterprises.

He has always believed that the first goal of all unlisted companies in the world should be to go public.

Only by going public can a company obtain sufficient funds for development, and for the founders of the company, the risks of business operation are much smaller and are shared by more shareholders.

The same principle applies to investment, but one disadvantage of investment is that it requires valuing the company.

Valuation cannot truly reflect the value of a company, and can easily lead to overestimation or underestimation, and investors will naturally demand to take away part of the company's management rights and voting rights, and interfere with the operation of the company.

This is actually easy to understand. People who have invested money and have certain ownership rights in the company are naturally eligible to claim certain management rights.

Everyone has different views on things and different business concepts. If a shareholder thinks that the actions of the founder of the company will definitely cause him losses, he will definitely interfere out of consideration of his own interests.

But interference is not necessarily good interference, and this kind of conflict between shareholders and founders is definitely not a good thing for the development of the company.

However, in the stock market, most of the investors we face are dispersed institutional investors, and these institutional investors usually do not ask for management rights, voting rights, etc.

What they care more about is annual dividends and the growth of the stock itself.

As for the reason why after the equity is dispersed, the profits will also be distributed to shareholders, resulting in the loss of interests of the founders of the original company.

That can only be said to be a very beautiful fantasy.

You know, for a company, becoming bigger and stronger is the most important thing.

For example, if a company is worth one million and the founder owns all the shares, then the benefit the founder will receive is one million.

But if some investors are introduced, a large amount of funds are obtained, and the company grows to 10 million, even if the founder's shares are only 30% at this time, his net worth will become 3 million.

It seems that the shares are smaller, but the net worth has actually tripled.

And if there is no help and investment, this company may not even have the qualifications to become bigger and stronger, and it may even be swallowed up by other companies.

This is how running a business is, sailing against the current. If you don't advance, you will retreat. The big fish eats the small fish and the small fish eats the shrimp. If you cannot become a big fish, you will only be eaten by others.
Chapter completed!