I always forget that all people, regardless of their capital, can "just become a shareholder".
I always forget that all people, regardless of their capital, can "just become a shareholder".
Can't do it? Then you have to share with sales, marketing, accounting, tax consultants, finance, auditors, lawyers, internal IT, HR, post-sales account managers, customer support, office managers, other engineers - and of course the people who keep it organized, and the people who took a risk and funded it. Seems fair to me.
Consider the opportunity cost of providing capital: if I invested my capital into NASDAQ100 accumulating ETF, I could reasonably expect 10-15% of yearly tax-free[0] profit stored in a safe asset that can be liquidated at any time. Potentially much more profit - last few years were great (20-40% p.a.). You have to give me more if you want me to risk my capital in a custom illiquid and unregulated over the counter deal, and I mean a lot more.
[0] In my country if you hold an asset for 3 years, you don't pay capital gains tax - this doesn't apply to dividends or any other form of income such as interest or rent. But the accumulating ETFs are fully tax free after 3 years - including the dividends and the gains. You just sell when you need money, no need to "reinvest" manually.
I co-founded my first startup when I was 16, as soon as I reached the lower age limit for being a company shareholder in the UK - I'm not from the UK, but I wanted it and so I found a way. If a 16 year old kid with acne and 300 euro in their wallet can do it, any adult professional can.
Yeah it's a load of risk, you work crazy hours, the stress is insane and sometimes you end up paying instead of earning - so don't be surprised that nobody will share the upside if you don't share the risk. It's not for everyone. But anyone can, if they actually wanted.
Foolish me for not just becoming a shareholder. I definitely had the spare time between the $7k/year I was making to take that risk and not die of starvation.
Your world would be great if I had a guarantee of food, water, a bed, basic medicine, etc. I'd love to have had the ability to throw my time at a risky innovative project. But, I didn't. If I had, and that project failed, I would have literally died. Downsides are too big in this capitalist world for anyone to just become a shareholder.
You said that you want to get all profit you made for the company - that's only possible if it's your company. If you don't want that, that's fine - but don't say the option isn't available.