OK, I guess I have misunderstood your thesis.

In 1985, I started an oil-well testing company. Setting up that company required two important steps: 1) Incorporating this business to set up its corporate structure, and 2) finding capital to buy vehicles and equipment. This funding came from four sources:

1) My personal savings, which were turned into shares of my company.

2) Bank Loan

3) Sale of shares to family and friends

4) Sale of shares to venture capitalists.

Under the vision that issuing of new stock is no longer allowed, it seems items 3 and 4 are no longer sources of funding for startup companies like mine.

I was understanding that the government would substitute items 3 & 4, But maybe that is not the case. So now I am more confused.

Is the reader at fault? Or maybe is there a better way of explaining this idea?