United States Entrepreneurial Visa norms will be revised/ relaxed for budding start-up Entrepreneurs around the world. The present EB 5 visa works as a window for people who can invest 1 million dollars or could create 10 US-based jobs. It is proposed to be replaced with EB 6 visa which will allow any foreign citizen who is able to raise at least $250,000 from venture capitalists, or so-called “angel” investors, to come to the US.
The entrepreneur would become a permanent US resident once the business has created five jobs, or achieved $1m in revenue, or if the visa holder has managed to raise a further $1m.
The Start-Up Visa Act was introduced by Senator John Kerry, the former Democratic presidential candidate, and Republican Senator Richard Lugar
Having a capping of 10,000 per year, still EB 5 is not a much in demand thing. Last year there were only 1265 applications for the same. Business starters find it very difficult to fulfill the conditions laid down. Brad Feld, a software and tech investor based in Boulder, Colorado, ran a bootcamp for young start-ups, which included entrepreneurs from abroad. Two wanted to stay in Boulder to continue working on their companies.
“We searched and searched but we were literally unable to help them stay, as there was no valid visa,” Mr Feld says. “I thought it was insane that we weren’t making it easier for entrepreneurs to come over here.”
Both the start-up founders – one Canadian, one European – returned to their home countries and raised $450,000 and $1.3m, respectively, and are now growing small businesses.
Ever since that experience, Mr Feld has been running a campaign to have a visa for budding entrepreneurs.
The main reason for U.S. thinking on relaxing the visa norms is the damage suffered by its economy during the recession. US is also reliant on foreigners coming to their country to do business.
An NCVA-backed report from 2008 said that immigrants have started 25% of US venture capital-backed public companies over the prior 15 years. The report said that most foreign entrepreneurs came from India, followed by the UK, China, Iran, and France.
Strict Visa norms acted like salt on wound, The economies of India and China – hotbeds for software and scientific talents – have continued to grow and the best and brightest are either returning home, or not leaving in the first place. Many high-profile scientists have come back to take senior teaching and research positions at respected and well-funded Asian universities.
EB 6 raises hopes for many people inside and outside U.S., but Mr. Raghu Sundaram a Chennai born U.S. Graduate worries whether young entrepreneurs starting out would be able to cope with the additional pressure of having to get to $1m in two years or face being deported.
Mr Feld may find it amusing as he is of the view that immigrating entrepreneur should face some local competition and must get his share of pressure too.
Source: BBC
