Unlike many countries, the U.S. doesn’t have a “startup visa,” or a specific immigration option for startup founders. Instead, immigrant entrepreneurs are left to work with an outdated system that is mainly built around employer-sponsored visas.
In the U.S., Congress is responsible for creating immigration laws. The last major overhaul of the immigration system was in 1990, which makes the immigration laws we have today over 30 years old. More people than ever are working primarily or exclusively online, and yet our immigration system is older than the internet.
There have been some immigration policy changes over the years, such as new regulations and executive orders like the International Entrepreneur Parole or the LIKE Act, but more comprehensive reform is long overdue.
Why Does the U.S. Need a Startup Visa?
Despite the lack of a direct immigration path, immigrant founders continue to play a major role in the U.S. economy:
- Immigrants make up approximately 17% of America’s workforce, but they have started 55% of American companies valued at $1 billion or more.
- When we include unicorns founded or co-founded by immigrants or the children of immigrants, the percentage rises to almost two thirds (64%).
- Around 80% of America’s unicorns have an immigrant in a top leadership role.
- One in four unicorn founders first came to the U.S. as international students.
These companies create jobs and fuel innovation. And yet, U.S. immigration policy routinely pushes international talent to more welcoming counties. Unicorn immigrant founders have succeeded despite the immigration system, rather than with its support.
Are There Alternatives to a Startup Visa?
The closest option to a startup visa is International Entrepreneur Parole (IEP), a program created during the Obama Administration. It allows some startup founders to stay and grow their businesses in the U.S. if their company shows strong potential for growth and job creation.
IEP was paused under the first Trump Administration, then revived in 2021. But because it wasn’t created by Congress, it isn’t law and doesn’t offer long-term certainty for founders.
What Can We Do?
Congress should create a startup visa. Other countries already offer immigration options designed for entrepreneurs. Without similar action, the U.S. risks losing top talent to more welcoming destinations.
If you’re looking to start your company in the U.S., you can find a feasible immigration pathway with the help of the right legal guidance.
Our Founding Partner literally wrote the book on U.S. Immigration Options for Startups. If you’re exploring your options, we’re here to help.
Never miss an update. Get the latest below.
