The reliance on the stock markets is mostly a phenomena of the English speaking countries. It is supported by aspects of law, some of which go back to English Common Law, and most of which were shaped by the evolution of that law during the 20th century, especially as the law related to debt, fraud, and financial transparency.<p>Most developed countries take a different approach. In both Germany and France, and also in Japan, it is common for businesses to rely on close relationships with banks to get the financing they need.<p>Because of all this, I object to the tone of this paragraph, which makes it sound as if there is no way forward for business, except for the stock market:<p>"Why take it public ? Because the stock market was a source of cash that could help you grow. It was a marketing and validation opportunity that told customers and prospects you had arrived. It was a liquidity opportunity that while not guaranteed, if you could continue to grow the company over the long haul, would value your company at a multiple of earnings and allow me, my investors (many who were close friends) and my employees to increase our net-worth and cash holdings."<p>There is an alternate way to interpret the changes of law and finance during the last 25 years: that the USA is converging toward a model that has similarities to that used in other developed countries. There is nothing wrong with this trend. There may a lot of positives to this trend. Merely focusing on the end of the old system by no means proves that the new system is bad.