A combination of lower due diligence requirements and high (effective) fees meant that companies that could go a more traditional IPO path usually preferred tha

A combination of lower due diligence requirements and high (effective) fees meant that companies that could go a more traditional IPO path usually preferred that path. The leftovers were mostly the duds. It was kind of a market for lemons: https://en.wikipedia.org/wiki/The_Market_for_Lemons https://en.wikipedia.org/wiki/The_Market_for_Lemons