A Prescription To Fix VC-Backed IPOs?
The National Venture Capital Association this morning released a four-point plan to revive the slumped market for VC-backed IPOs. Two of the pillars are aimed at public authorities (tax incentives & SOX/RegD reform), while the other two are aimed at the private sector (ecosystem enhancements like helping form more botique I-banks & creating new liquidity paths via secondary direct markets like InsideVenture, SecondMarket, etc.). What's important to realize about NVCA's presentation (posted after the jump) is that it argues that VC-backed problems are systemic, rather than recessionary. For example, the Spitzer-prompted separation of research and investment banking has caused massive drainage of the analyst pond, thus making it far more difficult for VC-backed companies to obtain coverage. And as much as I hate relaxing regs that were designed to protect investors, I'll concede that small-cap companies should not be under the exact same rules a large-cap companies. Or at least they should have a more streamlined process (particularly vis-a-vis SOX compliance). But let me also make a few additional points:
