There are millions of poorly run shady businesses, it's a problem that takes care of itself if you don't have infinite money coming in.

Not sure that it's a problem now though. Like Matt Levine suggested[0], WeWork did a lot of weird shit when they were private, but now they want public money, they need to behave more like a responsible company. It's kind of what's supposed to happen because of the disclosure, it's just that most of the time companies take care of governance issues before the S-1.

[0] https://www.bloomberg.com/opinion/articles/2019-09-13/we-is-...