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by bradleyjg 5212 days ago
From the regs:

(12) Investment . An investment is the treaty investor's placing of capital, including funds and other assets (which have not been obtained, directly or indirectly, through criminal activity), at risk in the commercial sense with the objective of generating a profit. The treaty investor must be in possession of and have control over the capital invested or being invested. The capital must be subject to partial or total loss if investment fortunes reverse. Such investment capital must be the investor's unsecured personal business capital or capital secured by personal assets. Capital in the process of being invested or that has been invested must be irrevocably committed to the enterprise. The alien has the burden of establishing such irrevocable commitment. The alien may use any legal mechanism available, such as the placement of invested funds in escrow pending admission in, or approval of, E classification, that would not only irrevocably commit funds to the enterprise, but might also extend personal liability protection t o the treaty investor in the event the application for E classification is denied.

(13) Bona fide enterprise . The enterprise must be a real, active, and operating commercial or entrepreneurial undertaking which produces services or goods for profit. The enterprise must meet applicable legal requirements for doing business in the particular jurisdiction in the United States.

(14) Substantial amount of capital . A substantial amount of capital constitutes an amount which is:

(i) Substantial in relationship to the total cost of either purchasing an established enterprise or creating the type of enterprise under consideration;

(ii) Sufficient to ensure the treaty investor's financial commitment to the successful operation of the enterprise; and

(iii) Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise. Generally, the lower the cost of the enterprise, the higher, proportionately, the investment must be to be considered a substantial amount of capital.

(15) Marginal enterprise . For purposes of this section, an enterprise may not be marginal. A marginal enterprise is an enterprise that does not have the present or future capacity to generate more than enough income to provide a minimal living for the treaty investor and his or her family. An enterprise that does not have the capacity to generate such income, but that has a present or future capacity to make a significant economic contribution is not a marginal enterprise. The projected future income-generating capacity should gen erally be realizable within 5 years from the date the alien commences the normal business activity of the enterprise.

I can understand the desire for a start up visa (I would support one) but it doesn't currently exist. Just because you have a friend in France who slipped one by the USCIS doesn't mean that anyone else will be able to.

If you can get $1,000,000 together, check out the EB-5 visa. Another common tactic is to get a business started in your own country and then use an L to open a branch in the United States.

2 comments

Actually, this is a box-checking exercise, and doesn't stand in the way of setting up a startup. I went through the same process in 1999, and have renewed ever since - and I did all my own paperwork (which is a huge pain), so I'm pretty familiar with how it works.

Initially, I talked to a lawyer about 'doing it right' - but concluded that I would have spent as much time describing it to the lawyer as writing the application myself.

One key point : You must be planning to create a company, not 'do a startup'. Have a business plan, with milestones. Quantify the investment, and project how it will pay back. Rent some office space, and have a contract. The embassy isn't in the business of understanding the Lean Startup experimentation process. They are interested in definite plans to grow a business (and employ Americans, too).

Of course, some of these points in the business plan may have a large 'error bar' on them. But you need to show to the Embassy that you're not crazy - and that they could not be labelled a 'soft touch' for granting the visa. There's no point trying to "slip one by the USCIS" : If that's the way you're thinking about it, that's the way it will appear.

To get the visa, you have to satisfy the regs. To satisfy the regs, you must have documentation that proves that each point, and subpoint, is satisfied. Each of these pieces of evidence needs at least 1 official piece of paper or a whole bunch of other justification.

Hope this makes sense.

It makes plenty of sense and it matches my experience. The UCSIS wants people that are going to come with substantial amount of money and set up a business.

They don't want someone coming in to go to San Francisco and network, pitch to investors, rapidly iterate till you find market fit, etc.

I think they should allow educated, motivated people to come into the country and give it a shot, but that's just not how the law is right now.

I agree that they should be more flexible (i.e. if someone can prove that they would earn more than the US average wage, it would be a net benefit to the US for them to be allowed in).

Further to the idea of coming over to SF and couch-surfing while iterating : The UCSIS wants to see 'CEOs' coming over. So that's what you need to give them. Your friends/fellow hackers may be surprised at the suit and distinguished haircut : But the picture you have to present at the Embassy (and through the documents) is one of business success being a forgone conclusion.

It goes beyond what you might do to impress a VC-like investor (who may also take a casual approach as some kind of signalling too). The UCSIS person is also getting 'invested' in your company. And they want to know that they're going to get their money back for sure. There's no equity upside for the UCSIS : They're much more like a debt investor/bank manager.

Apparently, recent changes hold that you can't go over on an L if you are a significant shareholder in either entity. Otherwise that would be a cheap loophole to get through the door.