The government shutdown could put a serious damper on the initial public offering (IPO) market says Internet entrepreneur Michael Fertik, CEO of Reputation.com.

"It's a big shame," he told CNBC.


"I've talked to CEOs now in registration for [IPOs], bankers who are very connected to the issue. It looks like November IPOs won't be affected, but December IPOs could be."

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That means Twitter's IPO is unlikely to be affected, Fertik noted.

The possible slowdown comes at a time when the IPO market is going great guns. "We've had 150 some IPOs year to date, which is up 50 percent year over year. We're on pace for a record year," he said.

"This is where wealth creation happens. If you want a very powerful lever to screw up wealth creation in the economy, defunding the SEC [Securities and Exchange Commission] is a good one."

Fertik has heard the agency is set to run out of cash in the next 10 to 15 days.

And if the SEC does shut down? "They haven't made clear to the people I'm talking to what their alternative plans are," he stated.

As for Twitter, some analysts say the company could be worth $15 billion to $20 billion once it starts trading, well above the $12.8 billion fair value Twitter assigned itself in its IPO filing last week, Bloomberg reported.

The higher numbers are "fair despite the lack of quantifiable profit," Jeffrey Sica, president of Sica Wealth Management, told the news service. "I anticipate the revenue will grow exponentially as retailers and media begin to explore ways to attract new customers through the use of Twitter."

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