'Start-up' visas to boost US tech

Brad, this is great momentum you are generating! 

BTW, I am a big admirer of your blog and wanted to send you my book - The Way Of The VC - Top Venture Capitalists On Your Board (http://www.tinyurl.com/wayofthevc). Would you appreciate having a copy and if so, what address should I send it to. 

-- 
- Best, Tan Yinglan    

The Way Of The VC - Top Venture Capitalists On Your Board (On Amazon)
http://www.tinyurl.com/wayofthevc  

LinkedIn: http://www.linkedin.com/in/yinglantan

Blog: http://www.wayofthevc.com

'Start-up' visas to boost US tech
By Maggie Shiels
Technology reporter, BBC News, Silicon Valley
A proposal that will make it easier for foreign entrepreneurs in the US to
start the next Google or Yahoo will be debated in the new year.
Congressman Jared Polis has proposed a start-up visa to entice "foreigners
with good ideas" to stay in the US.
The issue has been gathering steam in Silicon Valley where half of all tech
company founders are immigrants, according to Duke University research.
The idea is part of a proposed overhaul of the US immigration system.
"Every day the American economy is losing ground - not to mention high-tech
jobs and technologies - to India and China because foreign-born
entrepreneurs cannot secure a visa to stay in the US," he said.
Lost opportunity
Eric Diep, who has just turned 22, could be regarded as one entrepreneur
who got away.
He came to Silicon Valley as a student like many immigrant founders who
have helped start companies such as Google and PayPal.
Mr Diep was one of the first developers to get into social games with his
application called Quizzes, initially launched on the social networking
site Facebook.
Over a year ago he started to apply for a visa to allow him to carry on
working in the Valley, but he soon encountered problems.
"The reason it was so difficult for me was because I dropped out of
university and the stipulation for a lot of visas is undergraduate
experience. My age also seemed to be an issue for the attorneys
"At the beginning it wasn't the expense in terms of legal fees but the big
problem soon became one of distraction. I was trying to spend as much time
working on perfecting my product but then I would have to go away and
figure out the legalities of applying for the visa," Mr Diep told BBC News.
In the end, Mr Diep decided to base himself in his native Canada and travel
back and forth to Silicon Valley.
"The flying is so tiring between the two places and it's expensive. At one
point, I had no money left in my bank account but at the last minute money
came in and now I feel pretty fortunate that I can still do this.
"It was a pretty close call," he added.
He backs a start-up visa because, for him, being in Silicon Valley is where
he needs to be.
"Being there at the time really launched me. I would never have spotted the
social gaming opportunity had I not been there."
Visa details
The start-up visa is aimed at streamlining the country's EB-5 visa system
which was initially introduced in 1990 to attract foreign capital to the
US.
Each year 10,000 EB-5 visas are available but to get one, applicants need
to invest $1m and create 10 full-time jobs.
Mr Polis said he wants "a new class of eligibility" with the start-up visa.
It would be granted to foreign entrepreneurs if their business plan
attracts either $250,000 from a venture capital operating company that is
primarily US based or $100,000 from an angel investor.
They must also show that the business will create five to ten jobs or
generate a profit and at least $1m in revenue.
Some of these requirements may well be changed when the bill goes to
committee in the new year.
"Immigration reform is a big discussion in Washington," said supporter Brad
Feld, who is also a managing director with venture company the Foundry
Group.
"We think the start-up visa is an easy thing to talk about and get
consensus around in terms of having a positive spin on entrepreneurship and
creating jobs."
Job creation
Some critics fear that making it easier for entrepreneurs to set up shop
will hurt Americans by taking jobs away from them.
"I feel incredibly strongly that that is a misinterpretation of the
proposal," said Eric Ries a venture advisor and author.
"Some people have called those opposed to new immigration reform xenophobes
and that is why I think it is important we craft this proposal so it
addresses those concerns. This is not a new visa category but reform of an
existing but flawed category," he told BBC News.
The proposal's backers say that far from taking away jobs, new jobs will
emerge that were never there in the first place.
"If the capital is available for the market, we should jump to bring those
people here. Those jobs only get created once the founders get funded. This
is a market driven decision," said Dave McClure, an internet entrepreneur,
investor and start-up advisor.
YouNoodle is a start-up company founded by two British entrepreneurs. It
tracks the start-up sector and said the figures speak for themselves.
"If just ten thousand start-up visas were made available this would mean
over 3000 additional new innovative and funded companies would be based in
the US every year," said Kirill Makharinsky, YouNoodle co-founder.
"They would generate more than 10,000 jobs on average every year. In the
first 10 years that would add up to over 500,000 highly-skilled new jobs
"So the upside is huge and the downside is negligible because no jobs are
being taken away from US citizens," Mr Makharinsky told BBC News.
And for Mr McClure, the consequences of not establishing a start-up visa
class are obvious.
"We will lose out because we are not being competitive with the rest of the
world," he said.
"There are similar programmes in Canada, the UK and Australia. They are all
vying for the top entrepreneurs and if we only look at our own citizens, we
are only taking 10-20% of the world's talent into consideration here. That
would be short-sighted in the extreme."
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/technology/8417510.stm

Published: 2009/12/31 10:42:35 GMT

© BBC MMIX

--
- Best, Tan Yinglan    

The Way Of The VC - Top Venture Capitalists On Your Board (On Amazon)
http://www.tinyurl.com/wayofthevc  

LinkedIn: http://www.linkedin.com/in/yinglantan

Blog: http://www.wayofthevc.com