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.