Attorneys who handle IPOs shout “Amen” when asked if corporations are “living in a different environment” post-Martha Stewart, Enron, WorldCom, etc. “I think so, I hope so, I’m not sure,” says Tom Coll, a partner at Cooley Godward. “But I think that’s on everybody’s mind.”

That is Sarbanes-Oxley, a series of corporate disclosure laws designed to prevent future Enrons or at least make Enron-type fraud more expensive to commit.

Rule No. 1: No more bored board members. Hands-on management is in. “It’s a different environment as far as boards of directors,” says Scott Stanton, partner at Gray Cary. “They’re now more involved in the process because they know what they’re getting into. Some have been on other boards and realize the commitment involved in taking a company public.”

Rule No. 2: A longer history of success may be needed to convince skittish investors. A recent Fish & Richardson survey found roughly two-thirds of Southern California venture fundings in 2003 were for second and third rounds. Kintera may be an Internet play, but its chief executive has been around the board with another successful company. “You do have to have a longer track record of success than a few years ago,” Stanton says.

Rule No. 3: Find the revenue. “In terms of venture funding, the market is focusing on fundamentals,” says Eddie Rodriguez, a principal with Fish & Richardson. “Where are your revenues going to come from? These are questions that weren’t asked enough in ’98 and ’99. Now the young companies are much more solid than they were in ’99 and ’98; they’re stronger for having ridden out the recession.

“Sarbanes? It’s nothing that companies should not have been doing all along,” Rodriguez says.

— Richard Acello