Part of why there are fewer small-cap IPOs since 2000 has been due to the required external audits on companies - on average costing $2M. This had forced many companies to delay their IPO until they had the revenue to afford the audits, at which point often they no longer needed an IPO (due to folding, or selling).
The JOBS Act offered a series of exemptions for small-cap companies to be exempt from such audits, though I'm not sure what stage of implementation the SEC has taken it.
http://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups...
Part of why there are fewer small-cap IPOs since 2000 has been due to the required external audits on companies - on average costing $2M. This had forced many companies to delay their IPO until they had the revenue to afford the audits, at which point often they no longer needed an IPO (due to folding, or selling).
The JOBS Act offered a series of exemptions for small-cap companies to be exempt from such audits, though I'm not sure what stage of implementation the SEC has taken it.