Venture firms seek help to spur IPOs
Venture capitalists are urging regulators to make it easier for startups to go public by reforming post-Enron corporate-governance rules, a bid to end the worst initial public offering slump in decades.
The Securities and Exchange Commission should review regulations, including pre-IPO financial reporting requirements, as well as rules that keep investment banking separate from research within brokerages, and the Sarbanes-Oxley Act, the National Venture Capital Association said last month at a Boston conference.
The industry also is asking for tax relief for IPO investors, saying venture-backed stock offerings have helped create 12 million U.S. jobs. The association proposed a 10-percent capital gains tax rate for IPO investors who hold shares at least two years. That compares with the usual 15-percent tax on capital gains.