The International Entrepreneur Rule keeps the United States in the game…but it’s about to be shut down.
What do SpaceX, Dermalogica, and Google have in common? They were founded in the US by immigrant entrepreneurs. In fact, immigrant-founded Fortune 500 firms employ 12.8 million people worldwide and account for more than $5 trillion in annual revenue.
Many countries have established Startup Visas to attract talented founders to build the next unicorn on their turf. In the U.S., our variation of the Startup Visa is known as the International Entrepreneur Rule (“IER”). An applicant for the International Entrepreneur Rule must meet a high-bar: an entrepreneur would only qualify if he or she could demonstrate their company has “substantial potential for rapid business growth and job creation” and would “provide a significant public benefit to the United States.” Qualifying immigrant founders are allowed to stay in the US for 30 months to build their business, and then apply for an extension if the business is demonstrating growth and job creation. Alarmingly, the Department of Homeland Security (“DHS”) is taking steps to eliminate the IER program.
Your voice matters: The public comment period runs until June 28.
You can submit comments on behalf of your firm or company, or as an individual: HERE.
Many accelerators and incubators, including, Make in LA have signed a letter addressed to the Department of Homeland Security encouraging the agency to reject the “Removal of the International Entrepreneur Rule.”
We are told that sharing personal stories helps DHS understand IER’s value, so we plan to supplement the industry letter with our own personal experience. Check it out and feel free to use as a template:
Make in LA is an early stage venture fund and startup accelerator created to advance next generation hardware startups — Internet of Things, robotics, wearables, Industry 4.0, batteries, frontier tech, etc.
Make in LA has had 11 companies come through its accelerator program since our founding in 2015. Of these companies, 64% have had at least one foreign-born founder. These companies founded by immigrant entrepreneurs have gone on to build hardware technology including a mobile LIDAR sensor system for use across multiple industries including law enforcement, an Augmented Reality telepresence company, a wearable that tracks emotions using biosensors to assist with the treatment of mental health issues, and a robotic learning companion for young learners that develops coding concepts using play.
Foreign-born founders of companies at Make in LA, many of whom have graduated degrees, have encountered many immigration challenges including uncertainty of immigrations status, having to depart the US during critical times in the startups formation. This includes missing customer presentations and having to manage marketing campaigns from their home country. The reason many of our founders have seen challenges is that U.S. immigration policy is not built for the entrepreneurial model. The International Entrepreneur Rule will provide a means for foreign-born founders to launch new companies in the U.S.
The International Entrepreneur Rule is tailor-made to ensure talented immigrant founders are able to grow companies in the U.S. Rejection of the rule by the Department of Homeland Security jeopardizes future U.S. job creation and accelerates the decline of US startup preeminence, which has persisted over the past six years according to the 2018 Global Startup Ecosystem Report.
Your voice matters: The public comment period runs until June 28. You can submit comments on behalf of your firm or company, or as an individual HERE.
