Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
US President Donald Trump’s plans to put $ 100,000 dollars for H-1B visa applications will disproportionately harm the US startup space, founders and risky capitalists Before CNBC this week.
H-1B visas allow companies to temporarily hire foreign workers in qualified professions such as IT, healthcare and engineering-they were now difficult to provide US startups due to limited annual quotas.
In the last year, Desmond Lim, CEO and co-founder of HR, Payroll and hiring a Workstream technology platform, said all his apps for H1-B on his startups were rejected, which he called “very disappointing” while trying to provide more engineer talents.
Last year, however, Workstream provided several H-1B rentals that Lim told CNBC that they “change their lives for both employees and the company.”
“As starting at an early stage, every rent is precious and we only choose the best to go through the H-1B program, as it not only costs money but also takes time,” he added.
Now providing this talent is intended to become even more difficult. The White House plans To request the companies to pay a $ 100,000 fee when petitions for new H-1B visas, although many details remain unclear.
Lim said the fee would be too high to justify companies at an early stage like his, complicating the recruitment strategies.
Uncertainty and panic
Lim is not alone in his concern – startup companies across the country, along with H1B visas workers, were left to worry about the consequences of the new fees.
Alma, based in San Francisco for legal technology that provides tips for immigration to professionals and other start-ups, told CNBC that he saw a 100-time jump in inquiries after a White House declaration on Friday.
“In the last few days, customers have been scared and worried, as the amount of their companies suggests that they will not be able to pay $ 100,000 and compete in terms of salaries,” said the founder and CEO of Alma Aizada Marat.
Not only does Alma advise companies to hire H-1B talent, but also hires candidates on the program itself.
“The main problem is: Is there enough local supply to respond to demand if this international talent disappears?” Marat questioned. Startups often rely on finding an “undisclosed” foreign talent in order to gain an advantage over more competitors, she added.
Marat said that he advised companies to wait for more clarity regarding changes to the H-1B visa before changing hiring strategies.
Startups hit the most strong
Preliminary capitalists and innovation experts agreed that startup companies would be most affected by the H-1B visa visa fees.
A fee of $ 100,000 “disproportionate damage to the startups at an early stage” as they lack the resources of large active ones to absorb costs and rely on the global talent of scale, Alexander Lazarou, managing partner of Fluent Ventures, told CNBC in an email.
He added that startups often struggle to hire the engineers and specialists they need locally, but choose to bring talent through immigration rather than building remote teams outside the country.
Meanwhile, Robert D. Atkinson, president of the Information Technology and Innovation Foundation based in Washington, claims that only a few talented employees from abroad can often be a decisive factor in the success of the launch.
Foreign talent can also help start -ups to establish stronger overseas networks and customer bases, he added.
Less risk capital?
Opponents of the H-1B visa program claim that it eliminates the jobs of working for American citizens. But the unforeseen consequence of the $ 100,000 fee may be a reduction in entrepreneurship and financing at risk more.
A Study 2020 found that startup companies hiring workers through the H-1B visa process are related to an increase in the likelihood of obtaining external financing, publicly available or acquisition and performing innovative breakthroughs.
Now the new fee could “reduce the appetite of PE and VC for US names at an early stage, which rely largely to H-1B workers, many of which can now seek abroad to secure their careers rather than to risk further uncertainty in the United States,” the Crossbrid CEO said.
Singh added that changes to the visa program can instead create a stronger case for investors to introduce capital in markets such as the UK, Canada and Europe.
“Starts in the United States may experience reduced financing inertia, while Europe could see a relative lifting in both the flow of talents and investors’ attention,” he added.
Turning brain leakage?
Many markets, including in Europe, report problems with “brain-wishes” In recent years, citing a phenomenon in which qualified and educated workers emigrate to seek better opportunities in countries such as US
This movement is often associated with the development of highly qualified industries and entrepreneurship in the host country.
Now, the uncertainty about US immigration, including the development of H-1 B, can be a real turning point for technological talents that was on the US fence, said Laura Wilming, a manager of human beings and talents at Octopus Ventures, one of the most active venture capital investors in Europe.
The talented personalities who have ever seen the United States as an obvious destination are now seriously considering other markets, such as the United Kingdom and Europe, to build their careers, she added.
– Hugh Lesk and Ernestin Ciou contributed to this report contributed to this report
