The H1B visa has been used by some of America’s best founders and executives, including the founders of eBay, Zoom, the CEO of Microsoft and Elon Musk. The process for H1B applicants had been largely unchanged for 20 years but 2 weeks ago the current administration added a $100k fee to the visa application. The result was instant chaos.
Confusion around the fee being one-time or annual, travel restrictions and whether or not existing holders were impacted, all contributed to multiple White House clarifications, Big Tech companies urgently bringing H1Bs back to the States and even people begging to be let off planes bound for the USA.
However, change was long overdue. The H1B visa has been abused for years by employment agencies bringing in lower cost labor and leasing consultants out at high markups. The executive order should mostly stop this practice going forward. We’re also told that future H1B lottery selections will be weighted, based on expertise and salary; that is more good news. However, the price tag will certainly remain a barrier for startups.
Overall, the H1B visa program may ultimately benefit from these new rules but the presentation has been haphazard, causing a lot of uncertainty for folks caught in the middle. Big tech can certainly afford the fees but smaller startups are likely to reconsider. Let’s hope that doesn’t mean the next generation of great founders remain outside the USA.
Leave a comment
Subscribe now
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
Full investment process . 1 Minute Application
