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There is a proposal lately to push the US government to create a startup visa for brilliant innovators/entrepreneus from outside USA. With this visa, it is said that these innovators will be allowed to enter USA and stay for two years as long as they can get funding of $250,000 from a VC.

The question is, which some people are also wondering, how can someone from abroad get that much funding from a VC? Personally I would have to know the personality of the person I will invest in. How would a VC risk giving that much money for someone from abroad? How can a VC sign an agreement with someone that is not bound by the same law? Is trust not actually needed anymore?

Is this proposal flawed? Is there something that this proposal forgot to consider? Or maybe it would be as easy as said on the proposal to secure a $250,000 funding from a VC? Have I missed any information here that might also be useful for others like me?

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My question would be: what happens after the 2 years? – Olivier Lalonde Mar 11 '10 at 8:22

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I have not read the proposed legislation, so I will comment based on the post that you cited.

First, the qualifying U.S. investment need not come from a VC - it can com from an angel. Indeed, given the (relatively low) amount of investment being discussed, an angel is the more likely source.

Second, the U.S. investment need be only be $100K of a total investment of at least $250K. This suggests, for example, that the U.S. investor could be syndicated with one or more overseas investors in the entrepreneur's home country. I agree that absent such syndication, the likelihood that a U.S. investor would invest in, and bring over, a foreign entrepreneur on his own is very low.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

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