National Venture Capital Association (NVCA) officials are opposed to rescission of the International Entrepreneur Rule (IER), which would allow immigrant entrepreneurs to remain in the country to build startups.
The NVCA said the rule allows foreign-born entrepreneurs to launch high-growth startups in the United States, allowing them to remain in America for two and a half years, with the possible extension of another two and a half years.
Less than a week before the IER was to go into effect on July 17, 2017, the Department of Homeland Security (DHS) announced the rule would be delayed, and DHS intended to rescind the final rule.
The NVCA and the other plaintiffs argued because DHS did not solicit advance comment from the public on the delay, it, therefore, violated clear requirements of the Administrative Procedure Act.
“The startup and venture community is very disappointed with DHS’s short-sighted decision to turn away American jobs that would be created by the International Entrepreneur Rule,” Bobby Franklin, president and CEO of NVCA, said. “The facts are clear: our country needs more entrepreneurship, which is exactly what the International Entrepreneur Rule would bring. We will continue to explain to the administration why immigrant entrepreneurship benefits our country and must be supported by policymakers.”
NVCA officials said despite a court order, DHS has not moved forward with any applications under the International Entrepreneur Rule, prompting NVCA and its co-plaintiffs to file a motion for discovery in federal court to determine whether DHS is fully complying with the court order.
The NVCA said the U.S. share of global venture capital investment has dropped from 90 percent 20 years ago to 54 percent last year. Countries like Canada, France, Germany, and Singapore have put in place startup visas to bring new companies to their shores. NVCA officials maintain further delay of the IER will only harm the economy.