[throwaway7ahgb]

Capital markets has mostly two* components : Stocks and Bonds

Investors don't need to own part of a company to buy a Bond, they just want to see good credit rating and yield.

*VC is also part of capital markets but mostly private and such a small % of global investment.

[nradov]

New companies have no credit rating. Investors would never buy bonds sold by a new cooperative that needs a huge amount of capital to build a new semiconductor fab or something.