Startup Visa
Encyclopedia
The Startup Visa is a proposed amendment to the U.S. immigration law to create a visa category for foreign entrepreneurs who have raised capital from qualified American investors. It aims at addressing the absence of a visa category for entrepreneurs raising outside funding. It is currently denominated in congress as the Startup Visa Act of 2011, as introduced on March 14, 2011. The Startup Visa Act has bi-partisan support.
The Startup Visa is a temporary immigrant visa, or conditional permanent resident visa (conditional green card) which converts to a permanent residency
(green card) after two years if certain conditions are met.
The prospective Startup Visa is classified as an "Employment Based" visa, under a newly created EB-6 category.
, or the EB-5 visa
, which were not designed for entrepreneurs in particular, and can only apply to an extremely limited number of entrepreneurs.
Employment-based visas such as the EB-2 visa
are not viable options for entrepreneurs and can be denied on the ground of the applicant owning significant stake in the sponsor company.
The investor must be a qualified venture capitalist, a “super angel” (U.S. citizen who has made at least two equity investments of at least $50,000 every year for the previous three years), or a qualified government entity.
category (investor green card) which is limited to 9,940 visas, of which only 4,191 visas were used in fiscal year 2009.
The office of Senator Lugar stressed the following statement "The creation of new visas is not authorized in this bill."
In perspective, the U.S. admitted 1.13 million new legal permanent residents in the US in 2009, of which, only 12.7% were admitted through a selective process or "Employment-based" categories.
with no further legislative action having been taken on it.
on March 14, 2011 by Sen. John Kerry
[D-MA] and cosponsors Richard Lugar [R-IN], and Mark Udall
[D-CO] under the bill S. 565, with Senators Kirsten Gillibrand
[D-NY], Michael Bennet
[D-CO], and Mark Warner
[D-VA] joining on later as additional cosponsors. In the House
it has been introduced by Rep. Carolyn Maloney [D-NY14] under the bill H.R. 1114, with Rep. Bill Owens [D-NY23] supporting as a cosponsor.
As of April 1, 2011, the Startup Visa Act is awaiting Committee review. It has to undergo a review with the respectives Judiciary committee
s and the Immigration subcommittees of the Senate and the House. According to Govtrack.us, "The majority of bills and resolutions never make it out of committee".
Many other investors have officially pledged their support.
have been repeatedly voicing support to principles relating to it, the Obama Administration
have been notoriously silent on the Startup Visa Act, even through the Startup America initiative, introduced in January 2011. During a conversation hosted by The Economist on March 24, 2011, Aneesh Chopra
, the United States CTO, responded the following to Vivek Wadhwa
's question about the Startup Visa: "The President has been emphatically clear, his support for high-skill immigration, but to do so as part of a broader, comprehensive immigration reform program".
This approach has drawn criticism from some supporters of the Startup Visa who see the White House as wanting to delay the bill for an undetermined length of time in order to include it in a Comprehensive Immigration Reform broadly covering legal and illegal immigration, viewed as politically "toxic" for the Startup Visa Act.
Since the first introduction of the Startup Visa Act in 2010, these countries have additionally implemented specific visas modeled after the Startup Visa:
Similar movements have emerged in the following countries:
The Startup Visa is a temporary immigrant visa, or conditional permanent resident visa (conditional green card) which converts to a permanent residency
Permanent residency
Permanent residency refers to a person's visa status: the person is allowed to reside indefinitely within a country of which he or she is not a citizen. A person with such status is known as a permanent resident....
(green card) after two years if certain conditions are met.
The prospective Startup Visa is classified as an "Employment Based" visa, under a newly created EB-6 category.
Background
Foreign entrepreneurs who find themselves wanting to start a company in the United States are faced with no or limited visa options. The few visas offering residency and thus a path to citizenship applicable to entrepreneurs are visa categories such as the EB-1 visaEB-1 visa
The EB-1 visa is a United States visa created by the Immigration Act of 1990. This visa provides a method of obtaining permanent residency for "priority workers". Those are foreign nationals who either have "extraordinary abilities", or are "outstanding professors or researchers", and also...
, or the EB-5 visa
EB-5 visa
The EB-5 visa for Immigrant Investors is a United States visa created by the Immigration Act of 1990. This visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. To obtain the visa, individuals must invest $1,000,000 , creating or preserving...
, which were not designed for entrepreneurs in particular, and can only apply to an extremely limited number of entrepreneurs.
Employment-based visas such as the EB-2 visa
EB-2 visa
EB-2 visa is a United States visa created by the Immigration Act of 1990. This visa provides a method of obtaining employment authorization for aliens who are "members of the professions holding advanced degrees or their equivalent" and aliens "who because of their exceptional ability in the...
are not viable options for entrepreneurs and can be denied on the ground of the applicant owning significant stake in the sponsor company.
Requirements
The new legislation provides visas to the following groups under certain conditions:- Entrepreneurs living outside the U.S.—if a U.S. investor agrees to financially sponsor their entrepreneurial venture with a minimum investment of $100,000. Two years later, the startup must have created five new American jobs and either have raised over $500,000 in financing or be generating more than $500,000 in yearly revenue.
- Workers on an H-1B visaH-1B visaThe H-1B is a non-immigrant visa in the United States under the Immigration and Nationality Act, section 101. It allows U.S. employers to temporarily employ foreign workers in specialty occupations...
, or graduates from U.S. universities in science, technology, engineering, mathematics, or computer science—if they have an annual income of at least $30,000 or assets of at least $60,000 and have had a U.S. investor commit investment of at least $20,000 in their venture. Two years later, the startup must have created three new American jobs and either have raised over $100,000 in financing or be generating more than $100,000 in yearly revenue. - Foreign entrepreneurs whose business has generated at least $100,000 in sales from the U.S. Two years later, the startup must have created three new American jobs and either have raised over $100,000 in financing or be generating more than $100,000 in yearly revenue.
The investor must be a qualified venture capitalist, a “super angel” (U.S. citizen who has made at least two equity investments of at least $50,000 every year for the previous three years), or a qualified government entity.
Use of existing visa numbers
The Startup Visa does not allocate any new visa numbers but draws from unused numbers out of the EB-5 visaEB-5 visa
The EB-5 visa for Immigrant Investors is a United States visa created by the Immigration Act of 1990. This visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. To obtain the visa, individuals must invest $1,000,000 , creating or preserving...
category (investor green card) which is limited to 9,940 visas, of which only 4,191 visas were used in fiscal year 2009.
The office of Senator Lugar stressed the following statement "The creation of new visas is not authorized in this bill."
In perspective, the U.S. admitted 1.13 million new legal permanent residents in the US in 2009, of which, only 12.7% were admitted through a selective process or "Employment-based" categories.
Startup Visa Act (2010)
Introduced in Senate on February 24, 2010, the Startup Visa Act of 2010 was left to expire in the Judiciary Committee at the end of the 111th Congress111th United States Congress
The One Hundred Eleventh United States Congress was the meeting of the legislative branch of the United States federal government from January 3, 2009 until January 3, 2011. It began during the last two weeks of the George W. Bush administration, with the remainder spanning the first two years of...
with no further legislative action having been taken on it.
Startup Visa Act of 2011
The Startup Visa Act of 2011 has been introduced in SenateUnited States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
on March 14, 2011 by Sen. John Kerry
John Kerry
John Forbes Kerry is the senior United States Senator from Massachusetts, the 10th most senior U.S. Senator and chairman of the Senate Foreign Relations Committee. He was the presidential nominee of the Democratic Party in the 2004 presidential election, but lost to former President George W...
[D-MA] and cosponsors Richard Lugar [R-IN], and Mark Udall
Mark Udall
Mark Emery Udall is the senior United States Senator from Colorado and a member of the Democratic Party. From 1999 to 2009, Udall served in the United States House of Representatives, representing . He also served a term in the Colorado House of Representatives.Born in Tucson, Arizona, he is the...
[D-CO] under the bill S. 565, with Senators Kirsten Gillibrand
Kirsten Gillibrand
Kirsten Elizabeth Rutnik Gillibrand is an attorney and the junior United States Senator from the state of New York and a member of the Democratic Party...
[D-NY], Michael Bennet
Michael Bennet
Michael Farrand Bennet is an American businessman, lawyer, and politician. He is currently the junior United States Senator from Colorado, and a member of the Democratic Party...
[D-CO], and Mark Warner
Mark Warner
Mark Robert Warner is an American politician and businessman, currently serving in the United States Senate as the junior senator from the Commonwealth of Virginia. He is a member of the Democratic Party. Warner was the 69th governor of Virginia from 2002 to 2006 and is the honorary chairman of...
[D-VA] joining on later as additional cosponsors. In the House
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
it has been introduced by Rep. Carolyn Maloney [D-NY14] under the bill H.R. 1114, with Rep. Bill Owens [D-NY23] supporting as a cosponsor.
As of April 1, 2011, the Startup Visa Act is awaiting Committee review. It has to undergo a review with the respectives Judiciary committee
Judiciary Committee
Judiciary Committee may refer to:* United States House Committee on the Judiciary* United States Senate Committee on the Judiciary...
s and the Immigration subcommittees of the Senate and the House. According to Govtrack.us, "The majority of bills and resolutions never make it out of committee".
American Investors
A group of prominent American investors have been spearheading the Startup Visa since its inception and created the website StartupVisa.com:- Brad Feld
- Dave McClureDave McClureDave McClure is an entrepreneur and prominent angel investor based in the San Francisco Bay Area, who founded and runs the business incubator "500 Startups". He is often described as one of the super angel investors.-Bio:...
- Eric RiesEric RiesEric Ries is a Silicon Valley entrepreneur and author recognized for pioneering the Lean Startup movement, a new-business strategy which directs startup companies to allocate their resources as efficiently as possible. He is also a well-known blogger within the technology entrepreneur...
- Fred WilsonFred Wilson (financier)Fred Wilson is a New York-based venture capitalist and a prominent blogger. Due to his successful investment track record and community involvement, he is recognized as a leading voice of the venture capital finance community in New York...
- Manu Kumar
- Mike Speiser
- Paul Graham
- Paul Kedrosky
- Reid HoffmanReid HoffmanReid G. Hoffman is an American entrepreneur and venture capitalist. Hoffman is best known as the co-founder of LinkedIn, a social network used primarily for business connections and job searching.-Early education and career:...
- Shervin Pishevar
Many other investors have officially pledged their support.
Groups
These groups are known to support the Startup Visa (incomplete list):- US Chamber of Commerce's Center for Entrepreneurship
- Silicon Valley Leadership GroupSilicon Valley Leadership GroupThe Silicon Valley Leadership Group, founded in 1978 by David Packard of Hewlett-Packard, represents more than 340 of Silicon Valley's most respected employers on issues, programs and campaigns that affect the economic health and quality of life in Silicon Valley, including energy, transportation,...
- American Bar AssociationAmerican Bar AssociationThe American Bar Association , founded August 21, 1878, is a voluntary bar association of lawyers and law students, which is not specific to any jurisdiction in the United States. The ABA's most important stated activities are the setting of academic standards for law schools, and the formulation...
- Partnership for a New American EconomyPartnership for a New American EconomyThe Partnership for a New American Economy is a coalition of business leaders and mayors launched by Mayor Bloomberg and Rupert Murdoch to influence public opinion and policymakers toward comprehensive immigration reform...
- Women 2.0Women 2.0Women 2.0 is a global network and social platform for aspiring and current female founders of technology ventures. Founded by Shaherose Charania, Angie Chang, and Shivani Sopory, the group organizes workshops and events aimed at helping women entrepreneurs. In 2011, Women 2.0's mobile-focused...
- National Venture Capital AssociationNational Venture Capital AssociationThe National Venture Capital Association is the leading trade association representing the venture capital industry in the U.S. The NVCA represents the venture industry in public policy debates in Washington, DC, and promotes high professional standards, professional development, and interaction...
Entrepreneurs
Foreign entrepreneurs who have experienced the US immigration system as entrepreneurs are overwhelmingly supportive of the bill and have been increasingly joined by American entrepreneurs.Citizens
The supporters of the Startup Visa are putting forward job-creation, benefit to the economy and innovation leadership to get voters' attention. The San Francisco-based startup Votizen launched in March 2011 featuring the Startup Visa, allowing citizens to directly send a support message to their representative about the Startup Visa.White House "Agenda"
While the Startup Visa enjoys bi-partisan support and the White HouseExecutive Office of the President of the United States
The Executive Office of the President consists of the immediate staff of the President of the United States, as well as multiple levels of support staff reporting to the President. The EOP is headed by the White House Chief of Staff, currently William M. Daley...
have been repeatedly voicing support to principles relating to it, the Obama Administration
Presidency of Barack Obama
The Presidency of Barack Obama began at noon EST on January 20, 2009 when he became the 44th President of the United States. Obama was a United States Senator from Illinois at the time of his victory over Arizona Senator John McCain in the 2008 presidential election...
have been notoriously silent on the Startup Visa Act, even through the Startup America initiative, introduced in January 2011. During a conversation hosted by The Economist on March 24, 2011, Aneesh Chopra
Aneesh Chopra
Aneesh Paul Chopra is the first Federal Chief Technology Officer of the United States .Chopra previously served as Virginia’s fourth Secretary of Technology. Prior to his government service, Chopra was Managing Director for the Advisory Board Company, a health care think tank for hospitals and...
, the United States CTO, responded the following to Vivek Wadhwa
Vivek Wadhwa
Vivek Wadhwa is an Indian-American technology entrepreneur and academic.He studied IT at the University of Canberra in Australia, and later obtained an MBA from New York University's Stern School of Business...
's question about the Startup Visa: "The President has been emphatically clear, his support for high-skill immigration, but to do so as part of a broader, comprehensive immigration reform program".
This approach has drawn criticism from some supporters of the Startup Visa who see the White House as wanting to delay the bill for an undetermined length of time in order to include it in a Comprehensive Immigration Reform broadly covering legal and illegal immigration, viewed as politically "toxic" for the Startup Visa Act.
In the Media
Some actual immigration mishaps which the Startup Visa hopes to address have been covered in the documentary film Starting-Up In America, released on February 28, 2011.In other countries
In most of the developed countries other than the United States, entrepreneurs are not facing the same scope of immigration issues because of the availability of point-based visa systems, and/or the absence of ownership restrictions on self-sponsored employment visas.Since the first introduction of the Startup Visa Act in 2010, these countries have additionally implemented specific visas modeled after the Startup Visa:
- United Kingdom
- Chile
Similar movements have emerged in the following countries:
- Canada
- New Zealand