U.S. Citizenship and Immigration Services (USCIS) invited Guerra & Johnson, P.C. to participate in a listening session on Thursday, June 25, from 2:30 to 4 p.m. (Eastern). USCIS is now inviting all interested stakeholders to provide feedback on a proposed “significant public benefit” parole program for entrepreneurs. This is one of the executive actions on immigration announced by President Obama on November 20, 2014.
Under this proposed initiative, and based on the Secretary’s existing statutory parole authority, Department of Homeland Security may extend parole, on a case-by-case basis, to eligible founders of start-up enterprises who may not yet qualify for a national interest waiver, but who:
- Have been awarded substantial U.S. investor financing; or
- Otherwise hold the promise of innovation and job creation through the development of new technologies or the pursuit of cutting-edge research.
During the listening session, USCIS received feedback from industry experts and stakeholders regarding startup entrepreneurs, investors in startup enterprises, and startup accelerators in the United States.
As a reminder, USCIS is still interested in receiving your feedback. We are particularly interested in the topics listed below. We encourage stakeholders to provide data, fact-based evidence and any other written information relevant to this effort.
Qualifying U.S. Investors
Please provide us with your feedback on how you would identify a qualifying U.S. investor for purposes of the entrepreneur parole program.
- How would you identify a legitimate and credible investor, incubator or accelerator, and what mechanisms would you suggest using to monitor these entities for fraud or abuse?
- What types of reputable and independent 3rd party entities validate investors and incubators/accelerators? Are there any specific entities that do? If independent 3rd parties are not used, then what metrics are reasonable to apply?
Substantial U.S. Investor Financing
Please provide your feedback and supporting information regarding U.S. investor financing in startup entities in the United States and what amount you would consider to be substantial.
- What are the types of investments that investors in start-up entities typically contribute (e.g., equity, convertible debt)?
- What is the average and median investment amount (including grants) for the average start-up in each round of financing (e.g., seed, Series A, B and C)? Please disaggregate by round of financing and by industry.
- To what extent is there a correlation between the amount of investment received and whether the start-up entity generates significant revenue and experiences significant job creation?
- What is the average and median fully diluted equity stake held by entrepreneurs in start-up entities following each round of financing (e.g., seed, Series A, B, and C)? Please disaggregate by round of financing and by industry.
- What percentage of investors in start-up enterprises in the United States realize a return on their investment? How long does it take the average investor to exit with a return? Please disaggregate by industry.
- What percentage of start-ups in the United States go on to earn at least $1 million in annual revenue? How long does it take on average to reach this level? Please disaggregate by industry.
Promise of Innovation and Job Creation
Please provide your feedback and supporting information regarding average growth trends for start-ups, particularly related to the number of jobs created, amount of investment received and amount of revenue generated.
- Are you aware of entrepreneurs who might be interested in this proposed program, in the absence of other immigration options?
- How many jobs would a start-up be expected to create at year 3, year 4 and year 5 to show rapid growth?
- What is the average amount of investment that a start-up would need to receive at year 3, year 4 and year 5 to show rapid growth?
- What is the average amount of revenue that a start-up would expect to generate at year 3, year 4 and year 5 to show rapid growth?
- How do the average investment, job creation and revenue amounts vary from industry to industry? From state to state?
Please provide any other research, data or reports that you believe should help inform the development of this program.
Stakeholders are welcome to send responses to these questions to Public.Engagement@uscis.dhs.gov by Friday, July 10, 2015.
For more information on the executive actions on immigration, visit uscis.gov/immigrationaction. We strongly encourage you to subscribe to receive an email whenever additional information on these initiatives is available on our website.