IPO Reform: Some Immodest Proposals

IPO Reform: Some Immodest ProposalsThere are a number of reasons why venture capital has flourished in the United States, surpassing the performance of any other country or region (at least until now), some of which have to do with the legal and accounting structure which has been, sometimes overtly and sometimes stealthily, friendly to emerging growth finance. However, there are certain, undeniable problems with the current IPO system. Part 1 of this article will look at the current IPO process and identify some of the most apparent flaws. In Part 2, we will present a series of specific (immodest) proposals for IPO reform. In Part 3, we will set out a hypothetical comparison of the current system (the Short Runway) vs. the suggested option (the Long Runway).