How much has Sarbanes-Oxley hurt start-ups?

You've likely heard the news by now: In the second quarter, for the first time in 30 years, there were no venture capital-backed companies that went public. Zero! According to the report from the National Venture Capital Association, nearly 60 percent of investors surveyed blamed Sarbanes-Oxley. The burdens the law imposes on newly public companies are certainly real. But Sarbox has long been a convenient scapegoat. There are a host of other issues for VC-backed companies, notably the state of the economy and the state of Wall Street. Right now, the liquidity just isn't there. If you're a start-up, you're likely better off waiting for a more opportune window--or a corporate buyer (not that they're plentiful right now). In general, the VC industry is struggling a bit. Sarbox plays a role, but not the only role.  

For more:
- here's an article about the IPO drought from the Washington Post