FOR IMMEDIATE RELEASE
May 10, 2021
Contact: Devin Miller
WASHINGTON, DC – The National Venture Capital Association (NVCA) was thrilled today that the Biden Administration announced it will fully launch the International Entrepreneur Rule (IER). NVCA has fought for several years for IER, which works similarly to a Startup Visa, to be fully implemented. Today’s announcement means foreign-born entrepreneurs and their investors can take advantage of IER when building high-growth companies in the U.S.
“Immigrant entrepreneurs have made incredible contributions to the U.S. economy, including creating some of America’s most prominent companies, such as Moderna and Pfizer that have developed COVID-19 vaccines,” said Bobby Franklin, President and CEO of NVCA. “By implementing the International Entrepreneur Rule, the Biden Administration is unlocking an incredible job creation tool that will help the United States remain the global leader in innovation.”
Originally created at the end of the Obama Administration, the International Entrepreneur Rule was targeted for removal by the Trump Administration before it was launched, thereby costing the United States jobs, new company formation, and innovation over the past four years.
The Trump Administration first published a delay rule to push the effective date to March 2018. However, in National Venture Capital Association v. Duke, the U.S. District Court for the District of Columbia found that DHS violated administrative law with its delay order, thereby allowing immigrant entrepreneurs to apply for the program. Due to NVCA’s lawsuit, IER remained in force, but was not seen as a viable option because the Trump Administration repeatedly tried to end the program even after NVCA’s successful lawsuit.
Because IER remained in place, the Biden Administration was able to properly implement this job creating tool. NVCA has advocated for the Biden Administration to launch IER, including by leading a coalition of innovation focused industry associations.
Details on IER:
Under IER, a foreign-born entrepreneur can remain in the U.S. to grow their startup for 2 1/2 years (with a possible extension of another 2 1/2 years) if:
- The entrepreneur forms a startup in the U.S. that has substantial potential for rapid growth and job creation;
- The entrepreneur has significant ownership interest in the startup; an active and central role in the company; and would substantially further the ability of the company to grow in the U.S;
- The startup has received significant capital investment or government funding – e.g. $250,000 or more investment from established investors with a history of successful startup investments or a government grant of $100k or more.
More information on IER can be found here.
About National Venture Capital Association
The National Venture Capital Association (NVCA) empowers the next generation of American companies that will fuel the economy of tomorrow. As the voice of the US venture capital and startup community, NVCA advocates for public policy that supports the American entrepreneurial ecosystem. Serving the venture community as the preeminent trade association, NVCA arms the venture community for success, serving as the leading resource for venture capital data, practical education, peer-led initiatives, and networking. For more information about NVCA, please visit www.nvca.org.