Startup Visa – One Step Forward, One Step Back

On that same day the White House announced A New Front Door for Immigrant Entrepreneurs President Obama said that he was not supportive of the STEM Jobs Act of 2012. Infuriating.

I’ve been working on making it easy for foreign entrepreneurs to get a visa to start a company in the US since September 2009 when I wrote the post The Founders Visa Movement. This morphed into the Startup Visa Movement and I’ve written extensively about it over the past three years on my blog in the Startup Visa category. While some progress has been made through administrative changes at the USCIS and better education of USCIS and CBP about what an entrepreneur is, we are still falling extraordinarily short of where we could – and should be.

With every success (I got an email from an entrepreneur yesterday who I helped who had just gotten a green card) there is a nightmare, such as the well-known and well-loved Boston entrepreneur who was actually stopped at the border at Logan Airport a few weeks ago, told by CBP that she was lying about her visa, and tossed in jail for several days. A mad scramble among some of the Boston startup community leaders, led by Katie Rae at TechStars, resulted in this entrepreneur “only” being jailed for a few days. Jailed! President Obama should call her personally and apologize and give her a green card on the spot.

Vivek Wadhwa wrote a great summary of the recent decision of President Obama not to support the STEM Jobs Act of 2012 in his Forbes article Why Immigration Reform is Destined to be Another Obamacare. It’s more of the “all or nothing” strategy around immigration I’ve been hearing from the White House since 2009. Obama is a strong proponent of immigration reform, but he wants comprehensive immigration reform, rather than incrementally improving things. There are so many easy fixes that are non-partisan, such as the STEM Jobs Act, and it’s crazy that there isn’t a leadership focus on fixing the straightforward ones now, especially those that impact job creation, innovation, and entrepreneurship.

I’m extremely bummed out by President Obama’s position on this. Several months ago I had a conversation with one of my friends in the White House who implored me to support the STEM Jobs Act and was enthusiastic about the idea of little wins on this front. Clearly his perspective diverged from the broader White House strategy, which I fear will result in nothing done on this front.

In addition to Vivek Wadhwa’s recent article, he’s written an excellent book called The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent. I’ll be writing a longer post about it shortly but if this is a topic that you care about his book is a critical one to read.

For all the foreign entrepreneurs who can’t get appropriate visas to start their companies in the US, and to all of the amazing foreign entrepreneurs who put up with our idiocy and nonsense as they continue to struggle through the US immigration process, deal with visa hell, and get accused of lying by CBP, I humbly apologize to you. It’s embarrassing, and stupid, that as a country, especially one built on the the premise of “liberty and justice for all”, can’t get our act together on this front.

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  • Great post Brad – I’ve felt this pain personally as an Irish citizen now on an E (investor) visa for my NY based startup. Inevitably I’m left exposed to all of these CBP concerns and oddities which distract me from my work and make traveling pretty stressful when I should be focused on my business.

    Ultimately the USA is rapidly losing ground here to the East and while that includes China you don’t even need to go that far to see the encouraging, inclusive attitude to inbound innovation, investment and ideas that other countries have (Dubai for example).

    Having spoken to many young, foreign entrepreneurs in NYC I’m not sure that the bureaucratic approach to policy change can allow the amendments needed to happen rapidly enough for it to stem this issue.

    Here’s hoping I suppose but I’m certainly not holding my breadth (I’ve only got 5 years here for now!)

    • Thx Cillian. I share your fears.

  • america is forgetting the roots on which it was built. we are a country of immigrants and there is no doubt the quotas are simply insufficient to say the least. a true reform a la ACA would be fantastic. i cannot express how many entrepreneurs i know that find their way out. those are job creating people. our mayor, IMHO one of the better leaders and man of action has said it best here:

    • Yup – I totally agree that as a country, we’ve definitely collectively forgotten our roots.

    • ggm281

      I disagree with you entirely. The overwhelming majority of the country is in favor of “reform” that allows those with education to immigrate. They are just not supporting the alternative usage of the words “Immigration reform” in this country which in 1986 & 1996 simply meant the next great amnesty for the undocumented from Latin America. In a country where we have spent literally trillions trying to ensure that our kids have 21st century skills because we have a 40 trend of declining jobs for uneducated workers, the vast self-importation of uneducated, unskilled workers from Mexico and Central America will result in a monstrous problem of multi-generational poverty.
      If you want an immigration system that provides opportunity for entrepreneurs and STEM field workers, decouple “reform” from amnesty.

      • “The overwhelming majority” – can you provide data to support this? And – if there really is overwhelming support for this, why doesn’t our government listen to their constituents?

        • ggm281

          The overwhelming majority also favors a balanced approach to deficit reduction (documented in a multitude of polls.) Do you see that happening? One team is still trying to do it with no tax rate increases, the other proposed only $40 bn/yr in even maybe cuts.
          Perhaps the problem is more in politicians needing to score a team “win” rather than supporting sound public policy supported by “the people”? There always seems to be more an 2 eyes on the next election cycle and none left for governing. I don’t see Democrats passing even the STEM act an idea that they actually support. 2 Senate Democrats even called it “racist”.
          You know we do admit 1.2 million legal immigrants a year. It is not like the US has abandoned its immigrant heritage.

          • I’m not suggesting this is a republican issue or a democrat issue. Both parties are the problem.

      • TejDhawan

        @GGM281, Decoupling is and has been the intent. Comprehensive immigration reform is the facade that politicians from both parties hide behind to not address the issue. Democrats want comprehensive reform so they can claim amnesty as a win, and Republicans want the tallest walls built so no illegals jump the border. Neither seems to understand the value of surgical strikes envisioned through acts like this that resolve economic and employment problems through tweaks to current policies surrounding F, H and J visas.

        BTW, you state that you disagree with Brad entirely yet are proposing to decouple, which incidentally separates the skilled immigration from comprehensive immigration policy change.

        • ggm281

          I disagree with the original statement that America has forgotten its roots. We granted 1.2 million visas last year alone.
          You may view the term “immigration reform” as its literal meaning. However in this country “immigration reform” has ALWAYS meant grant an amnesty to the Latin Americans who are here without a visa. Include a few mild interior enforcement mechanisms to attempt to slow further illegal immigration. Allow the 9th Circuit Court to set aside all new enforcement mechanism because it makes life difficult for the new illegal immigrants who have entered the country in the subsequent year. Rinse and repeat.
          I currently live in TX. The “economically disadvantaged” portion of the K-12 program has gone from a fairly high 27% to nearly 70% in just one decade. How exactly are the schools to be funded when 70% of the children come from families who don’t earn enough to contribute to the tax base? We spend nearly $9000/year per student on K-12, but closer to $12,000 for non-ELP students. It is unsustainable in a state where even “the rich” earn a lower income than most, and the median income is well below the national level.

    • We’ve forgotten our roots ever since the Mayflower. Congress wasn’t too happy about Italians and Irish and Jewish immigrants at the turn of the century and even before that Asian immigrants were deterred in the 1800s. This has been an ongoing battle throughout our history.

  • I know President Obama wants comprehensive reforms across the board — health care, immigration, tax. I wonder if Congress is really good at this, though, and better at making cautious, incremental reforms. It seems that the only time we get comprehensive reform is when catastrophe strikes, and often the results are devastating. (For example, 9/11 caused a huge new beauracracy and I’m not certain we are any safer than pre-9/11.)

    • Congress – and our government – is not good at comprehensive anything. I’ve come to believe that is by design – to slow things down – and keep the pendulum swinging too far in one direction.

      • I am also struggling with it. I want to open a branch of my London and Italian venture, I want to open branches on both costs and employ american young workers, talents with great skills that deserve that. But stupid politicians keep on lowering the available wealth. This is a measure to control the population.
        Thus, a nation like US always focusing on being decisionist and organized, how can leave important decisions about immigration and if one person is able to enter or not to single persons and officers that often even don’t know what is entrepreneurship? How an under educated police officer can decide on matters well bigger than her? Very sad. US this way will lose its leadership toward UK, Germany and Singapore, countries that make the most to welcome entrepreneurs. Sorry for you…and for all. Of us too.

        • Moreover, recent studies highlighted that around 65/70% of the last decade jobs in the US were created by startups founded by immigrant entrepreneurs. That’s it.

  • Jeffrey Hartmann

    I too am disappointed this has turned into a partisan fight, but I think both sides are to blame here. The republicans put a poison pill in the bill that was passed. They removed the diversity visa’s, and that is not acceptable. I have good friends that were lucky enough to get a green card through the lottery. This is really a hope for so many individuals. I have had friends who had to leave the country back to Brazil because they graduated as well so I am torn. I think we need to go back to our roots, there is a plaque at the Statue of Liberty that has the a poem that includes the following words “Give me your tired, your poor, Your huddled masses yearning to breathe free”. My fathers side of the family is German and Czech immigrants who came through Ellis Island and believed in these words, and they have left a great legacy. My wife is from Brazil and my son is a dual citizen, so I also see this through another lens as well. Some of my friends are illegal immigrants, and they it battle every day. We need to do something here to fix the Stem situation, but we can’t do it at the expense of our heritage. I feel that this is primarily the reason that Obama has not supported this bill in its current form.

    Perhaps someone could propose that the Senate pass a similar bill that does not treat immigration as a zero sum game. We can afford to add 55k visas for students that want to stay here. They will create many more jobs then they will “take” from Americans. Unfortunately some people do believe that if someone wins then someone definitely has to lose. I hold at my core that we both can win.

    We all need to push to open up America again, cause right now America is closed. Our forefathers are rolling in their graves.

    • I’m curious about the diversity visa. You say that it really is a hope for so many individuals. It may be a hope for many, but it is a reality for ridiculously few. So, is there really a benefit to the US, or to the pool of potential immigrants? I’d say that it isn’t – it’s only a benefit to the very few selected. On the flip side, if the impact of this visa is so small, then why are the Republicans going after it? Is it purely as a poison pill negotiating tactic? Personally, I think it should stay because, as it stands, there are so few paths to immigration as it is. But, as often in politics, things that don’t matter are used as bargaining chips for things that do.

      • Jeffrey Hartmann

        I last I heard there were 13 million or so applicants every year to the diversity program, so the number of people selected is crazy small in comparison to who applies to the program. There are also rules that make the visa rotate where it is available based on amount of other immigration for the country. You might get a chance to apply one year, and then not have a chance for many years to come based on the past immigration numbers from your country.

        That being said, its requirements are for just a high school education. These are people who might or might not be highly educated (my friend I mention was), but in general they are normal people who want something better and see it in the United States. I personally believe that we should do everything to bring people who are motivated and want to better themselves. The Stem Jobs act that passed the house though says that the highly educated people are more valuable to society then the ones without. In my experience this is not always the case, I’ve seen many successful immigrant businesses founded by people who do not have MBA’s or PhD’s. For example, One of the guys I know is starting to dabble in Angel investing, investing in fledgling companies in Brazil. He started out with just a Landscaping business and moved to buying real estate in Brazil. He got his green card a long time ago, but he would definitely be the kind of guy who might come over on the diversity visa. I want more of those guys here, they are fighters and fighters win.

        Who knows why the republicans wanted to go after the diversity program. I’ve heard some crazy things like they were afraid of terrorists using it, which is logically beyond grasping for straws. I think it boils down to their attitude that the job market is zero sum, and they think we can only afford to take in so many immigrants without disrupting the market. I also think they knew it would be a poison pill and they could appear to be doing something that they knew would never pass. I really hope this bill can be amended and pushed through in some form, it is sorely needed. I just can’t with good conscience support something that explicitly values someone over another when we could just expand the number of total immigrants allowed. Everyone is welcome is a better message then if your “smart enough” your welcome. We are the land of opportunity and possibilities, lets fight to keep it that way. I’m going to write my congress critters, I suggest everyone else who is passionate does the same.

        • Well, jobs are NOT a zero sum gain (which I think you know). Better productivity leads to economic growth, leads to more wealth, leads to better jobs. Yes, certain jobs go away, but what a country like the US does well, or should do well, is creative destruction. I don’t know if the republicans know this, or don’t care. It almost doesn’t matter – they are playing for votes and immigrants are an easy target (more specifically because they, by definition, won’t vote until they become citizens, and if they are illegal, they will never vote).

          The real question is – why is immigration limited in the first place? If it is truly for jobs, then there should be a better way to fast-track skills that are needed. If it is for other reasons, like preventing population growth, or selecting for other reasons, then that should be addressed. The system is broken, but if no one is asking what it should accomplish, it will never get there.

          Seriously…terrorists will use the diversity visa? (rolls eyes)

      • I applied to the lottery in November, and apparently the success rate is 33% for New Zealanders, but sadly at the moment its my only real way into the US. I was a featured entrepreneur in Vivek’s Immigrant Exodus and I’ve looked into all the options in depth. Its truly insane.

        • 33%?! That’s amazingly high. It seems (Wikipedia) that the average for Oceania is around 5%. This implies that very few Kiwis (relatively) apply to move the US – which I also find odd. I would imagine the mobility of Kiwis is higher than residents of, say, Tonga.

          Best of luck. I’ve gone through this merry-go-round (and am still in it) since before the dot-com crash.

    • Totally agree. I think this is a both party problem, and that’s extremely sad.

  • Kieran

    Anecdotally, my father is a Ph.D chemical engineer who arrived in the US from Ireland 40 years ago. The US was the only country he considered. Now, none of my cousins who are in similar positions have considered coming here. They’re all going to New Zealand or Australia.

  • Unfortunately, many “reformists” also believe that our founding premises are antiquated and out of date. Some things, however actually do transcend time. I’m sorry to say, we are all getting what we vote for.

  • StevenHB

    If the administration were to support STEM and other consensus immigration reforms, what incentive would there be for addressing more controversial immigration policy changes (i.e. those relating to unskilled laborers)? You’re right that it’s an all or nothing approach but I believe that taking the low-hanging fruit will result in no progress whatsoever on the “higher-hanging” fruit.

    • I disagree. As someone who has negotiated a bazillion different things in my life, the all-or-nothing approach, which is currently in favor in US politics, is very ineffective in general. If you build trust on both sides of a negotiation, you can quickly make progress on a wide range of things. If there is no trust, you’ll never make any progress.

      • StevenHB

        I think that there’s no trust – sadly with a forecast of more of the same.

        • Sadly, I think you are correct. Which means nothing productive will happen in the near term.

  • I really don’t see the light on this.

    I wrote about the startup act 2.0 here: saying it was a joke. This new bill was the same.

    It would be so simple and so profitable for the government, it is mind blowing.

    One solution that would help entrepreneurs and STEM graduates in the country, while minimizing fraud risk, would be a startup registry, that gives access to a special visa.
    – You just need an incorporated company and an overview of what you’ll be doing. Doesn’t matter if your US citizen or not.
    – In the first year you can bring max 3 people (like E-2).
    – After 1 year you have to either have raised funding or be profitable. [You can request a 1-year extension for profitability (but you need revenues).]
    – After the first year, you have a blanket visa to bring in as many STEM graduates as you want at market rates.
    – You have 3 years to hire at least 5-10 people (no matter if US or not) at market salary.

    • Totally agree that the current proposal is incredibly light compared to what the Startup Visa movement proposed, and what is actually powerful. But small incremental progress is better than nothing. I like your proposal also!

  • RS

    Brad, you are swimming against the tide. I struggled for years to get a green card. I finally gave up and moved to Canada, where I founded a successful technology startup. There are too many stakeholders in this game and it tends to deadlock any move that favors one group of applicants over another. America and the world are in an economic downcycle that will continue for the rest of this decade, it won’t matter if America stops importing entrepreneurs. It’s reminiscent of the situation in the the early to mid-seventies. There will still be some major innovations coming from America during this decade, similar to the major innovations in computer hardware and software during the mid-seventies that are still driving us today.

    • Yup – I’m well aware I’m swimming against the tide. But that’s life sometimes. Or a lot.

  • billmosby

    As long as the physical border is still fairly permeable, I think we should just abolish all immigration laws and regulations. To keep the present double standard is insulting to those who want to legally come here and make a contribution.

  • I am not fully informed about the startup visa situation in the US but I have been reading more and more about entrepreneurs returning to their native countries whether it is India or China and succeeding. In other words, these countries will emerge as the big winners in all of this. This might not be a bad thing for global entrepreneurship but it is not the right course for the US.

    • Well said.

      • TejDhawan

        Or quoting – “we have a choice – either import the people or export the jobs”.

  • Bills have many parts — is there any word on what specific part(s) Obama opposes? Maybe its not the visa thing, but something else embedded in it that’s not so great?

    • Said cynically: “I’m sure the bill has something buried in it that abolishes Obamacare.” Seriously – my understanding is that it is a very tame bill.

    • TejDhawan

      The Republican party is suddenly realizing that immigration is a critical issue and wants to talk. Despite Sen Grassley’s (R) prior opposition to HR3012, he has relented and wants the bill to go to vote since late summer. Democrats, on the other hand, have been seeking comprehensive reform and are now sensing an upper hand as the Rs are coming toward an issue near and dear to their heart.

      So – I don’t see a single clause or word as the reason Obama is opposing this bill – he is probably seeing the opportunity to go to comprehensive reform instead. Also, he hasn’t yet stated that he’ll veto the bill if it did come to him from the House and Senate.

      Time, methinks, to begin a lobby and writing campaign, especially since his handlers were so eager to get me to talk to them on small business issues.

  • This is entirely off topic, but you might want to update your wp-plugins or something because your index shows all blog posts as having 0 comments. See here, and consequently makes it feel like a lonely place, when thats not the case at all.

    • Thx for pointing that out – something must have broken in the past few days.

  • Zane

    Agree. Such shortsightedness by the US. We are quickly loosing (or lost) the title of “The place to be” for young people and business. Difficult to get that back once lost

  • Appeos

    Well said, Brad. I’ve followed all your writings on the subject, since the beginning, as I’m interested in taking part in the Startup Visa program.

    I’ve run several successful startups in London (UK) and for my latest business I’d love to startup in the USA, but it just seems impossible. I want to create jobs, pay taxes, give to charities, help other people, buy a house, create wealth and ultimately live a good life.

    I know I can do all those things here in London, but I’ve always loved the USA and whenever I visit, either for business or vacation, I always think that I’d love to bring my family up there.

    I know of people who have secured their place in the USA through less than honest means, but I don’t want to do that. I’ve always been honest and lived a decent life, so I couldn’t do it that way.

    Anyway, I hope that you will continue in your sterling efforts. It may not always seem like it, but it is greatly appreciated and you are not alone. Thanks.

  • lynnerae

    Last week, I (a U.S. citizen living in Mexico) spearheaded a conference in Punta Mita, Mexico, the MITA TechTalks, which brought together pretty much the entire (small but passionate) tech ecosystem in Mexico, long with notable Silicon Valley VCs, tech leaders, M.I.T., Stanford etc. The goal was to increase cross-border communications and opportunities in tech innovation. In the end, one of the topics that came up over and over again was the U.S. immigration policy, and how Mexico may be able to use this to its advantage — providing a place with the same time zone and easy travel access for foreign entrepreneurs with visa problems in the U.S. Add to this the pretty remarkable stat that Mexico has 3 times the number of students in university IT programs, as the U.S. has.
    I’ll be participating in a roundtable discussion on entrepreneurship hosted by new president Peña Nieto tomorrow, in Mexico City. One of the goals of this new administration is to make high bandwidth internet pervasive across the country, this country of heavy mobile users.
    The U.S. needs to pay attention to this issue, and solve it in favor of entrepreneurs, because it’s neighbor to the south is steamrolling ahead to offer opportunities, not restrict them.

  • Brad — apart from founders, what about the highly skilled immigrants that the founders want to hire, but can’t, because the immigrants can’t switch jobs because they’re locked in by their H1-B status, while waiting in a queue for green card approval?

    Why not 2 Simple laws:

    1. If you’ve lived in the US for ‘x’ (5/7/10… you pick) years, and have paid $y ($200K / $300K / $500K… you pick) in Taxes, and want a green card because you want to continue to stay in the US and pay your taxes to bolster the economy, you get a green card on a SILVER plate from the US Govt. and a personal thank-you note from the treasury secretary.

    And of course —

    2. If you’ve raised $z ($500K / $1M … you pick) from an accredited VC and hired ‘n’ (5 / 10 … you pick) FTEs in the US, you get a green card on a GOLD plate, with a personal thank-you note from the President.

  • JT

    Hi Brad, I started two startups and was eventually forced to close because I am on H1B visa. I have computer science engineering from India and MS in Information systems from Carnegie Mellon. I think I was patient enough hoping that my situation would get better. But now that I am neither getting my green card nor an opportunity to do a startup in US, I re locating to Canada. I think I will miss all the great startup events and amazing engineers that I met in US.

    • I’m bummed. I hear stories like this every day. Depending on where you go in Canada, just holler if you need / want any help getting plugged into the startup communities.

      • JT

        Thank you Brad :). Will always be reading your blog. America is successful because business leaders like you take personal effort is shaping the future of the country without leaving it to politicians alone. Thanks again.

  • For solving a political problem, lobbying and political avenues in general, are doomed to such twists.

    That’s why Blueseed is offering an entrepreneurial solution to the entrepreneur visa problem. Disclaimer: I’m CTO at Blueseed.

    • What’s the Blueseed solution?

  • I wish the US would adopt a points-based immigration system like Canada’s. I also think there are better arguments against non-immigrant visas being granted than immigrant visas; I’d have a higher bar for people just coming to the US to work temporarily vs. people who would like to relocate here permanently and act as full citizens, provided you meet a self-sufficiency and positive contribution standard. The lifetime net contribution of a a great entrepreneur, engineer, or scientist moving to the US is huge.

  • The immigration mess is infuriating. A dear friend of mine is getting deported this month because of bureaucratic foul-up by the government. With that said, Obama’s stance against

  • Sigh. This would have been nice. Sadly, the message from the US government is that even though I’m doing a CS PhD at Stanford and have also founded a profitable startup with two americans (which has been a constant worry about visa processes), I should return to Australia. At least I can surf at warm beaches and leave the cold of OB behind I guess.

  • Pingback: US Immigration Fails Entrepreneurs Again()

  • The Des Moines register just did an article on this and enflamed my emotions again on this topic. Businessweek had it right this week when they superimposed crying infants into an image of Congress with the title “Babies”. I’ve sent this to Iowa’s congressional delegation and the Prez – . Maybe similar stories from each state would be forceful. Should try and get Startup America regions behind it.

  • Pingback: Startup Iowa’s Tej Dhawan on the recent STEM Jobs Act | More Startups. More Jobs.()

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