US Immigration System Sucks, if you are a Founder
As a "non 'US citizen Co-Founder" with a US startup, I'm facing a lot of problems with immigration policies. I'm thinking, why I have to do this? Why I have to spend all this time on stupid bureaucracy instead of focusing on my startup? Well because I think that if you work into the technology area, and you want to succeed, there is no other place better than San Francisco. I mean, if you want to do finance, probably NY, London or Singapore is the best place, or if you want to work into the fashion industry, Paris or Milan will help you a lot. Every economy has his own place; you can succeed everywhere of course, but in the right place the chances are higher and the risk is lower.
Nowadays this topic is hot; people like Paul Graham (an essay), Fred Wilson (a post), Dave McClure and others have built a website to actively support the new Startups Visa. But even this one could not be the right solution. Today's startups require few dozen dollars to run, and with that visa you have to get at least $250k in funding, where 100k have to come from US accredited investors. Moreover it could take 2 or 5 years for the government to enroll this visa, if they will do it...Innovation is the only thing that can let USA to maintain his leadership for many years to come; in economics growth and wellness. But innovation comes from the margin of the culture, innovation is a dynamic underlying architecture of the present economy, it evolves earlier than big corporation, government and bureaucracy. Innovation comes from startups. Thus, startup DO NOT have to deal with governments and bureaucracy at all. Startups have to live into the chaos.
If you are not an US citizen, and you want to drive your company in US, it's like to have 2 startups: the real one and another one o deal with immigration. Deal with Visas, is the biggest time consuming (and stupid) task that I have seen in all my life. The Immigration System is old, and is not properly designed to resolve today's challenges, especially to give a primary way to come in US for founders. Probably those startups will not become Google, but they could have 10 US employees, and hundreds of startups with 10 US employees will overtake all the Apple and Google workforce.
Nowadays the Visa situation for entrepreneurs (only those who likely live in a Visa Waiver Country; i.e India is not in the list) that have a startup in US, is this:
Non Immigrant Visa: (means that you do not have any intentions to be a US citizen, one day. De facto, after 5 years with certain type of these Visas "H1B or O1", you can get a green card)
H1B: (the most popular) This Visa let you be hired from your company. So you can be the CEO, CTO or a developer of your company.
Pros - After five years you could get the green card (if lucky) and you can go in and out of US as many times as you want.
Cons - You must have a salary according to the country avarage salary for the same position. So if you want to hire yourself as a developer and your company is in San Francisco, you have to put you a salary of $6000/month. You can put yourself (virtually) as a part-time worker and have a lower salary, but anyway if you have rised an Angel or a Seed round, you have to throw away a lot of money in taxes. Moreover, in my opinion, at the beginning a founder should not have such a good salary, till the company is profitable or after a Round A. We don't have any salary. There is an annual limit quota.
Duration - Three years, extensible to six.
B1: It's a visa for temporary visitors, for businesses. Every time you come in US, you can stay here 6 Months maximum, than you have to leave, stay in your country for a while, like 3months, and then come back for another 6 Months period. You can come in US if you are a shareholder of an US company or if you have to do business (meeting, event, conference, business development like partnership, etc) in US for a foreign one.
Pros - Is the fastest visa that you can get, and to apply you don't have to take with you a lot of documentation.
Cons - You can't have salary nor be hired even by your own company, moreover if you do the "back and forth" a lot of times, the immigration can stop you. Do it just 2 or 3 times, than you have to change the Visa. You have to provide to the embassy that you have enough personal or company moneys to live in US.
Duration - You can use it within 10 years.
L: Is for international transfers who have worked for a related organization abroad for at least one year in the past three years. They will be coming to the United States to work in an executive/managerial (L-1A) or specialized knowledge capacity (L-1B)
Pros - If you already have worked into a foreign company for a couple of years it's easy to get.
Cons - For a brand new startup directly in US, it's impossible to get this one.
Duration - Three year period if they intend to join an existing company or a one-year period if they intend to join a newly established company. Extensions are granted in 2 years increments for a maximum of 5 (L-1B) or 7 (L-1A) years.
E2: This is an investor visa. If you got at least $50k/75k from your country in investment, and you have already spent 25% of that amount, you can apply for it. Must be real investment, money in the bank are not enough.
Pros - You can work legally, and travel freely in and out of the US
Cons - It's long to get it, you must be a national of a treaty country.
Duration - They can give you 2 years or 5 years, then you can renew it.
O1: It's available to people of extraordinary ability in the field of arts, science, education, business or athletics.
Pros - If you already got a lot of press in your country, it's fine. You can accept an employment and you don't have to maintain a foreign residence. You can freely travel in and out of US as you like. No duration limit.
Cons - It is expensive, it requires a lawyer and additional fees and you must have a lot of press from mayor media. Hard to get.
Duration - No limit.
J1: Is good for an internship. You can apply for it as a founder to make an internship into your company.
Pros - It's easy to get
Cons - You must be sponsored by an organization approved by the Department of the State (DOS). You must have sufficient funds to cover all the expenses and sufficient scholastic preparation. You must have a small salary
Duration - When you enter in US, an inspector makes the final decision of the duration of the stay.
Immigrant Visa: You become a permanent resident
EB5: This a visa for serious investors. It's probably the best to get a Green Card as soon as possible.
Pros - You get the Green Card almost immediately, and you get a citizenship after 5 years.
Cons - You have to be rich, and put your own money. The minimum is $500.000, but is better to put $1.000.000. You have to invest (at risk) these amounts in US, and create at least 10 US new jobs. Moreover you have to invest only in one of 100 US government approved regional centers. Sorry guys, but this is not for us.
Duration - It's for the rest of your life :)
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Moreover even if you get a Visa like the B1, don't be sure to enter in US, because the inspector of the Homeland Security have always the last word. He can decide whether or not you can enter and for how long. That is too much power all in one man, who (frankly) doesn't know anything about businesses and how they work.
To conclude, americans do not exist.
Americans are not composed by a population with a unified DNA like Italians, Mexican, or French; Americans are a melting pot of different ethnic groups. Probably the power of this country is just this: the difference, deeply rooted into the nation's structure. Let me repeat that: "Americans are a melting pot of different ethnic groups". Well the Immigrations System is killing this secret sauce that drove United States for hundreds of years...
Obviously there is a good immigration and the bad one. A well organized immigration policy is the one who can divide clearly the good and the bad one. Uncontrolled and illegal immigration must be stopped as soon as possible.
At the end, what my advice could be? Try to make an application for the Green Card Lottery, and wish to win one, seriously.
If you have further questions drop me an email at: knock.knock@mashape.com, I will be happy to help people who simply want to create a better world :)
Good Luck!
Augusto
(talk to a lawyer, these Visas above are extremely summarized to what interest to us. There are other type of Visas, but I think they do not work for startupers like us).
