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The real reason IPOs are flopping is the lack of startup transparency, some experts say. And they worry that a new SEC rule could make things worse

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  • While Silicon Valley VCs blame Wall Street’s dominant role in IPOs, corporate governance experts say rules that allowed startups to withhold more information was a cause of recent flops
  • They cite the impact of the Jumpstart Our Business Startups Act — or the JOBS Act — which allowed startups to file for an IPO confidentially and withhold more information about their financials.
  • They worry that an SEC proposal to open up private markets could make the problem with the lack of transparency worse and hurt individual investors.
  • Check out Business Insider’s special series — Founder Frenemies — for more stories on Silicon read more >>>

    Source:: BusinessInsider.Com