This is far too little to work, and possibly even worse than the awful E2 visa that already exists (and which we are on). As someone who has been a foreign entrepreneur in the US, and who has started a US based company, this would not be nearly enough to entice me to start a company in the US. In fact I regret having made the mistake of investing in the US as no path to immigration for my family has been (or will ever be) provided, even after 10 years of residency and very hard work. I know hundreds of other E2 visa holders who feel similarly regretful. We feel betrayed by a country that we’ve embraced and which has done little for us.
My eldest son would be in a stronger position if we had entered the country illegally and started a business, but we made the mistake of doing so legally. As a result he will face deportation at the age of 21, whereas our other 2 children were born here and can remain. We applied for green cards to try and resolve our situation but were rejected, even though we employ 10 US citizens, have made substantial investments in the US, I hold a PhD from one of the top ranked Universities in the world, and have been here for 10 years. As a direct result we are actively divesting out of the US and relocating back to Australia, and I would strongly encourage every other foreign investor and entrepreneur to go elsewhere.
What entrepreneurs need is some level of certainty, and this does not provide it, far from it. Instead of providing illegals protection for their children (and leaving out legal immigrants) and giving unknown foreign entrepreneurs pathetic 2 year visas to startup companies, how about creating an intelligent immigration system that evaluates people on a point basis? This would be a solution that could be continually tweaked to favor people in desired occupations and with desired traits. The current US immigration system is an antiquated joke that needs real reform. This new policy might make for a good sound bit to the press, and to people who are not entrepreneurs, but no real entrepreneur who is good at assessing risk and reward will find this in any way enticing. They can see that they would be far better off investing in Australia, Canada, or somewhere else.