Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost U.S.



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Vivek Wadhwa
Entrepreneur Turned Academic Posted: March 14, 2011 06:10 PM

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Startup Visa Bill Reintroduced: Could Boost U.S. Entrepreneurship
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In my last post about the Startup Visa, I was very critical of the Kerry-Lugar legislation. That's because it required immigrant entrepreneurs to raise at least $250,000 in financing for their startups, of which $100,000 had to come from American VCs or Super Angels. Few startups raise this kind of seed money -- even in Silicon Valley. I couldn't foresee this bill generating more than a few dozen jobs. Yet our political leaders would have claimed
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"Mission Accomplished," and we would have lost a valuable opportunity to stem the brain drain. I was delighted to receive an e-mail, last week, from Garrett Johnson, who works for Senator Richard Lugar (R-Ind.). Garrett said that the Senator had read my

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articles and asked his staff to consider my comments. After consulting with Bob Litan, of Kauffman Foundation; Brad Feld, of Foundry Group; Eric Ries, of the lean-startup movement; and other champions of the visa, Garrett had revised the legislation. He sent me a draft of the bill that was introduced today. This new legislation is even better than I had hoped for. If it gets through both houses -- and doesn't have bureaucratic constraints -- I expect it to unleash a flood of entrepreneurship.

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000 in financing or be generating more than100. they must start again or leave the U. take their jobs away. Francis: Healing Wisdom for Today Today's Markets as of Mar 15. The requirements for them are very reasonable -. A lot of hard work has gone into this bill. investor agrees to financially sponsor their entrepreneurial venture with a minimum investment of100.66 $25. Yes.58% Losers $2.S.S. Shervin Pishevar. Foreign entrepreneurs whose business has generated at least100. Follow Vivek Wadhwa on Twitter: www. Even though the bill doesn't allow visa holders to work for any company other than their own. encourage tens of thousands of workers trapped in "immigration limbo.if they have an annual income of at least30. somehow.000 in yearly revenue. to try their hands at entrepreneurship. and it is not meant to. Facebook posts.52 -33. by tech notables Brad Feld. Maxine Waters End Foreclosure Assistance Programs as Economy Starts to Recover? Sounds Like a Terrible Idea Matthew Dowd Rumi and St. Eric Ries.38 startup visa WIKINVEST POWERED BY go Wikinvest data is provided as-is. Two years later.45 +4. or computer science -. there is a risk for holders of this visa that. This version of the bill will. This won't appeal to everyone. technology. 4:41 PM EDT S&P 500 NASDAQ NYSE Gainers 1281. the startup must have created three new American jobs and either have raised over100.000 in sales from the U. or graduates from U.73 $13. Two years later.11 -14.000 or assets of at least60.24% Most Active +0.000 in financing or be generating more than100. This legislation allows them to create the jobs ICOG HWCC IPXL WSM SEARCH Recommend 1K Popeater: More Naked Photos of Vanessa Hudgens Leak Online Like 85 Popeater: Charlie Sheen's Porn Star Party Friend Kacey Jordan Attempts Suicide Like 127 Jimmy Kimmel A Dramatic Story. But that's entrepreneurship -. and get a qualified investor or a government entity such as the Small Business Administration to validate their ideas by making a modest investment. permanently unless they do. to qualify for a visa. Entrepreneurship The new legislation provides visas to the following groups under certain conditions: 1. investor commit investment of at least20. and SMS messages and hand-deliver them to Congress.19% +15.there are no guarantees.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . delayed. mathematics.S. Workers on an H-1B visa.S. 2. universities in science. The really good news is that this enables foreign students and workers who are already in the U. The investor must be a qualified venture capitalist.000 in their venture. I expect. Dave McClure. Right now.S. at the End of Which Nothing Happens Like 4K The Heretical Rob Bell And Why Love Wins Like 756 Popeater: Eva Longoria Still Cries Over Tony Parker: Candid Details on Her Divorce Like 28 Popeater: John Roberts and Kyra Phillips Welcome Two 'Little Burritos' to the World Like 9 DON'T MISS HUFFPOST BLOGGERS 1 of 5 Rep.85 -1. They fear competition and will make claims that these startups will. citizen who has made at least two equity investments of at least $50.12% -1.huffingtonpost. or a qualified government entity. and recipients of the startup visa will not be allowed to stay in the U.33 8092. regardless of what is good for the country and of what is good for them.000 in yearly revenue.000 and have had a U.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost U.85 +3." and foreign students who would otherwise return home after graduation. Two years later.S.000 in financing or be generating more than500.25% -1.000.000 in yearly revenue. over the last two years. 2667.67% +15. Fred Wilson. This post originally appeared on TechCrunch. Now it is your turn to speak up and help us revitalize the economy.40 +42. if their venture fails or doesn't go anywhere. This group is launching a campaign to gain the bill political support. a "super angel" (U. Many of these people would not otherwise have considered entrepreneurship.S.000 every year for the previous three years). Manu Kumar. I have no doubt that the anti-immigrants will rally against it. 3. -. The Startup Visa is for risk takers.64 -101. the startup must have created five new American jobs and either have raised over500.they must show that they have enough in savings not to be a burden to American taxpayers.twitter.S. and Paul Kedrosky.S.63% +12. Entrepreneurs living outside the U. They always do. But the fact is that skilled immigrants create jobs. and subject to Terms TOP VIDEO PICKS 1 of 9 http://www.52 $39.if a U.S. these job creators have no choice but to take their ideas and savings home with them and become our competitors. the startup must have created three new American jobs and either have raised over100. It is using social-lobbying tools powered by Votizen to take tweets. they will now have the incentive to take the risk.81 +1. The Startup Visa website details how you can get involved and help the bill to succeed. Why West Virginia? Central Location. Day 2: Why We'll All Be Playing Games Soon Dear CEOs.Startup Visa .FerociousMedia..000 Entrepreneurs Have Raised $1 Billion With My Simple 'Formula' http://www. Call Today! www. YouTube Brad Feld on The Startup Visa PtIII Metacafe Eric Ries . Celebrate Failure Web Startups Want An Open Internet -. Startup Visa The Startup Visa: Create Jobs. Day 2: Why We'll All... Skilled Workers.. Entrepreneurship Rough First Day of Business After Japan Quake Congress' Startup Visa Advocate Forbes GeeksOnaPlane: A Tale of Two Erics / The Startup Visa Movement .huffingtonpost.S.. Why Not! www.0] – All United States – – – All United States Alabama Select a Category: – All Job Categories – All Job Categories – – Accounting Search 85 71 45 39 Previously on Small Business America HUFFPOST'S BIG NEWS PAGES SXSW Interactive.. a Startup Visa That Works http://t.House Republicans Don't Social Media Marketing: 5 Restaurants That Get It The Worst SEO Mistake You Can Make Around the Web: More Startups.. Get A Green Card Paul Kedrosky and Brad Feld: Start-up Visas Can Jump-Start the . Low Business Cost Loyal. Ads by Google Need Venture Capital? 2.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost a Startup Visa That Works (@vwadhwa / TechCrunch) http://tcrn.. 4Chan Founder: Mark Zuckerberg Is 'Totally Wrong'.co/BCOUesc via @techcrunch 1 day ago from Tweet Button Enter Keyword(s): Techmeme http://techme.wvcommerce. Michael Jackson MORE BIG NEWS PAGES » Facebook Shutting Down March 15 Rumors Return SXSW Interactive.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . There's No Need for the Chinese to. More Jobs. Startup Visa Twitter Widget LA Impact Homelessness Egypt Protests Teacher's Union Nancy Pelosi Rick Perry Japan Earthquake Haley Barbour More in Business.2-Year Visa for Immigrant Entrepreneurs YouTube Rising oil prices threaten low cost travel Japan's markets react to disaster startup visa robhof 1 day ago from Techmeme Enter a City: Select a State: T hC h Fi ll St t Vi Th t W k htt //t h/h L kb @ dh 1 of 1 TOP INFLUENCERS ON THIS TOPIC TOP LINKS ON THIS TOPIC A VC: #startupvisa Startup Visa And The Impact on Indian Startup Ecosystem [BrainDrain Small Business Change the Way Your Business is Found Online in 2011.

The whole program is an insult to our American for readers who aren't aware.huffingtonpost.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . is the preferred visa of offshore outsourcing companies from India .that has very strong controls over them (can revoke sponsorship). That is your contribution. I would not say their salaries are anywhere closed to "servant" wages. Post to Blogger. This visa. This will be yet another program ripe for abuse. and use the program to send jobs offshore. I guess this bill would allow them to buy their freedom. Wages have not risen even as productivity has. Post to WordPress. Well. It won't create jobs. h-1b workers make the prevailing wage but (if you understand economics) the effect is wage Infosys. and Tata.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost U. They get paid pretty good salaries. These foreign companies actually sponsor more H-1b visa holders than all other American companies. H-1b is direct federal interactive in the labor market. As an H-1b worker you have helped to deny American raises. after being approved your comment will appear directly underneath the comment you replied to. Also. I myself started employment under H1B and even though I would like to make much more (who wouldnt !!) .S. If anything we should be abolishing the job-killing H-1b visa. Entrepreneurship Filipina Fiance / Wife? Comments 34 Pending Comments 0 View FAQ Login or connect with: More Login Options You must be logged in to comment. To reply to a Comment: Click "Reply" at the bottom of the comment. Permalink | Share it drymartini3 2 hours ago (9:38 PM) 6 Fans My employer has sponsored tons of H1B's. and will cause people to make unwise business decisions because of desperation. I never thought I was making slave wages !! Permalink | Share it mashtoe 12 minutes ago (11:00 PM) 233 Fans Drymartini3. Most people become entrepreneurs because they have a passion about whatever it is they are doing. Preview Comment Post Comment Share your Comment: Post to Facebook. Wipro. End of story. and supports the oppression of others. nothing less. Post to TypePad. Post to Twitter. View All Favorites Recency | Popularity Roy Lawson 5 hours ago (5:52 PM) 6 Fans It's really the wrong incentive to be an entrepreneur. Post to Tumblr. Nothing more. http://www. the H-1b worker is a defacto "indentured servant" because workers are sponsored by a corporation .

§ 1324 : US Code .S. The more supply there is the lower the wages are. please don't tell me we have a shortage of "IT" workers and engineers etc.huffingtonpost. But the job market for IT workers is small. Entrepreneurship Permalink | Share it Viper1st 11 hours ago (12:19 PM) 120 Fans Vivek Wadhwa's "immigrants" could become naturalized U. I thought the H-1B program was used to fill in shortfalls in the employment sector where the need existed? Permalink | Share it mashtoe 13 hours ago (10:37 AM) 233 Fans Will357. Permalink | Share it drymartini3 2 hours ago (9:39 PM) 6 Fans americans have this entitlement mentality thinking that americans have dibs on american employer's jobs !! Permalink | Share it mashtoe 8 minutes ago (11:03 PM) 233 Fans http://www.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost Permalink | Share it HUFFPOST SUPER USER padrushka 14 hours ago (8:55 AM) 106 Fans as a regular local would love to have a that kind of 'seed' money for a business. Real unemployment is near 20+%.S.Section 1324: RE: aiding & abetting illegal aliens Permalink | Share it mgpayne 12 hours ago (11:22 AM) 17 Fans Why should we be surprised? Typical government. Citizens & then apply for a start-up financing at a local bank Like the rest of legal immigrant Americans do Just a thought ~ ~ ~ ~ rather than provide more "special" programs to aiding & abetting for illegal foreign nationals residing / working in the USA illegally 8 U.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . Permalink | Share it HUFFPOST SUPER USER will357 16 hours ago (7:19 AM) 41 Fans Follow Why are we still using H-1B visas. Same goes for most skilled labor. This means that any interference by the federal government in the labor supply can quickly impact wages. Wages are based on supply and demand. shouldn't it be 1st fired. We should all be very suspicious of any plan to help Americans that involves more labor in the market. with the addition of college grads and those already downsized initially fom the ecomic collapse. that was the stated goal of H-1b. first hired from America 1st.

H-1b was lobbied for by executives who feel entitled to low It's corporate communism to demand federal interference in the US labor market.000 into new temp agency 4) Company like Microsoft is a client for 2 years That's it. The people who feel entitled are the one's who lobby the government.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost U. the proposal need to be thoroughly threshed out separating the positive side and the negative then discussing threat bear its short long-term impacts. Permalink | Share it IllTakeTheRedEye 20 hours ago (3:40 AM) 238 Fans Point numer 2 above authorizes the flooding of the US labor market --------------------------------------------------------------This is how New startup = a temporary employment agency disguised as a consulting company An advocate for more H-1b will put up the $20. Permalink | Share it HUFFPOST SUPER USER FACTISFACT 18 hours ago (4:48 AM) 94 Fans Follow However good a proposal may look into it would have some negative sides. I suggest to others that you wait for Microsoft and HuffPost to sync Perhaps Oracle Sun Microsystems did not communicate with Microsoft on IE9 regarding Java? ------------------------------------------------------------------------------------------------------------ http://www. dental.000 per year salary draw (Equivalent on hourly basis) $70..) > Employers across USA become clients to lowball wages to all professional occupations > No limit to how many the new startup can hire as a contractors to replace Americans The strategy will be used to displace Americans from ANY professional occupation + Engineering + Scientist + Accounting + Network Engineer + Financial Analyst + IT departments + Etc.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . however small it may overtly seem to be. the following is satisfied 1) More than $100.. Having done that the final decision should be taken.000 per year salary draw (Equivalent on hourly basis) $70.000 per year in revenue is generated 2) Each has income of at least $30. Therefore.000 per year is what client will be charged. saving cilent $30.000/yr on benefits Total revenue made after 12 m>-------------------------------------------------------According to the above.000 3) They have an investor that puts $20. Entrepreneurship Drymartini3. They have qualified for visa to remain in USA indefinitely -------------------------------------------------------------> Profitable to startup even though it is not a requirement > Employers across USA become clients to save money on not paying any benefits (Health insurance. anything.000 per year is what client will be charged.000 to invest in the NEW temporary employment agency 1st Year Entrepreneur or Sole Proprietor is employee contractor number #1 1) H-1B foreign-born worker $55.000/yr on benefits 2) Contractor #2 Foreign-born grad of SciTechEngineeringMathCompSci major $55. And that would be CEOs. saving cilent $30. I don't feel entitled to anything. 401K.huffingtonpost. Permalink | Share it IllTakeTheRedEye 18 hours ago (5:05 AM) 238 Fans The above is what happens when I tried to post using Internet Explorer 9 If it was not unique to me.

like they need it. Do you really think either party is going to doing anything to help create jobs if they won't even end H-1b work visa fraud?! At Microsoft right now we are hiring H-1b work visa holders instead of Americans because we are driving down wages.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost U. Permalink | Share it ConservativeCheeseburger 22 hours ago (1:31 AM) http://www. Permalink | Share it HUFFPOST SUPER USER Changeover 22 hours ago (1:31 AM) 259 Fans Oh great the drug cartels get another 100k per This is simple people. The fact is that since we started free trade. Anything else leads to corruption. and amnesties wages have stagnated.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . It's more federal interference in the US job market.000 ================================================= Can we not use an equal sign any longer? Total revenue made after 12 months = $140. Permalink | Share it mashtoe 21 hours ago (2:21 AM) 233 Fans The simple question is: why is this the federal government's job? If we can't regulate CEO pay then certainly we shouldn't be interfering in the job market for everyone else! Either open borders or very limited immigration based on lottery. Permalink | Share it mashtoe 22 hours ago (12:46 AM) 233 Fans This bill will help to crush wages for Americans. Entrepreneurship ---------------------Correction Above states "Total revenue made after 12 m" Should of been: Total revenue made after 12 m> Permalink | Share it IllTakeTheRedEye 18 hours ago (5:08 AM) 238 Fans Unbelieveable! Total revenue made after 12 months EQUALS $140.huffingtonpost. work visas.000 Permalink | Share it 2ewdee 12 minutes ago (11:00 PM) 104 Fans It has already displaced American Physicians.S.

Permalink | Share it OhManOhMan 06:45 PM on 3/14/2011 9 Fans Tell you what. Permalink | Share it 2ewdee 23 hours ago (12:07 AM) 104 Fans Yes... economy. Entrepreneurship 4 Fans It’s the unintended consequence of government intervention. Never fails to amaze me where "investment" money goes. It's time for Americans to invade or move south and take over their jobs...S.e. After so many years of it. Just bunch of bugs eating crops all over." i. Yet strangely enough. Click Here To See them All blackranger 09:43 PM on 3/14/2011 32 Fans And we sit here with a business plan that will create 10 jobs in two years. Permalink | Share it HUFFPOST COMMUNITY MODERATOR specultr 21 hours ago (2:06 AM) 122 Fans Just reading the comments of the two of you. corporations do value history.. Permalink | Share it 2ewdee 23 hours ago (12:00 AM) 104 Fans The US "government".000 money to buy additional equipment. most should have learned to shy away from it if they were to follow Pavlov’s theory of classical conditioning. Permalink | Share it There are More Comments on this Thread. They are buying more manageable slaves with this bill. we sit here while the government will encourage much larger investments for much smaller job returns. now long since been a corporation.huffingtonpost. education. are poorly educated and unemployable. Only in large metropolitan areas now could you possibly find the money for the really small new businesses. immigrants from Europe. It’s getting to a point where the car wreak has started to lose it appeal.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost U. etc. it's obvious that you both could not be employed in any type of serious job. and its what this country has been built on 400 plus years of slavery which never ended..html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . Permalink | Share it eva07 21 hours ago (2:35 AM) 239 Fans They will have the exact same problem to get money. is just buying cheaper slaves elsewhere. both sides of the political spectrum continue to come back for more. This corporate will no longer value it's history anymore. free health care. Bring in more immigrants because the majority of the "natives. and I no longer have the desire to slow down and watch. for lack of $25. compared to 10.1. (See Table Entrepreneurship America put out of their millions of foreclosed upon homes have just wised up.6 percent of non-citizens.1 percent of natives used Medicaid.) • And 7. http://www.7 percent for non-citizens.pdf Permalink | Share it Robert SF 15 hours ago (7:53 AM) 100 Fans It should be zero percent for http://www.huffingtonpost. Permalink | Share it There are More Comments on this Thread.6 percent of natives used SSI (Supplemental Security Income) in 2006.3 percent of naturalized citizens and 0.cato. How about a company that assists local law enforcement in identifying fraud in the immigrant community.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] . They try to use the title line to say immigrants don't use social programs but the stats tell a different story. LLC Full Charge Bookkeeping Call Today For A Free Consultation businesscentsllc.6 percent of natives used AFDC/TANF.3 percent of non-citizens. • For SSI.0 percent of naturalized citizens and 1. Over the years I have heard anecdotal evidence time and again of immigrants gaming the system (ie.9 percent of naturalized citizens and 6. • For Medicaid: 13.. 1. Permalink | Share it Ya Ya Godot 06:40 PM on 3/14/2011 96 Fans I have an idea for a start up. claiming single mother status to obtain free food and other freebies).. Permalink | Share it barbra1971 20 hours ago (3:11 AM) 49 Fans The data tell the story: • In 2006. compared to 3. compared to 0.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost U. Permalink | Share it There are More Comments on this Thread.7 percent of natives used the Food Stamp program.8 percent of naturalized citizens and 11. Click Here To See them All HUFFPOST SUPER USER dtairtime 12 hours ago (11:18 AM) 129 Fans F & F'd Your link is funny in that the title contradicts it's substance.2 percent of non-citizens. which most natives would not use because they are eligible for Social Security benefits. compared to 3. 0. Click Here To See them All Ads by Google Business Cents. http://www.S.Vivek Wadhwa: Startup Visa Bill Reintroduced: Could Boost All rights reserved. Entrepreneurship FRONT PAGE IMPACT POLITICS BUSINESS ENTERTAINMENT MEDIA TECH SPORTS STYLE WORLD LIVING CAMPUS LOCAL HUFFPOST MONEY AUTOBLOG THE WATCHDOG TECHCRUNCH Enter email address BUSINESS SMALL BIZ BLOG Get Alerts Advertise | Log In | Make HuffPost your Home Page | RSS | Careers | FAQ | Contact Us | Privacy | Comment Policy | About Us | Powered by Movable Type | "The Huffington Post" is a registered trademark of TheHuffingtonPost. User Agreement Copyright © 2011 TheHuffingtonPost. Inc. Inc.huffingtonpost.html?ref=fb&src=sp[3/15/2011 11:20:15 PM] .

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