What Does the Shutdown Mean for Venture Capital and Startups?

Much of the federal government ground to a halt on Wednesday after a funding lapse paused nonessential functions. Here are some ways the shutdown might hit startups and venture-capital firms.

IPOs

The government shutdown could throw a wrench in companies’ plans to hold initial public offerings. The Securities and Exchange Commission gives companies the green light to list shares by approving their registration documents. The SEC said starting Wednesday it would operate with limited staffing until further notice.