{"id":44856,"date":"2023-10-20T15:39:09","date_gmt":"2023-10-20T15:39:09","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/the-new-us-visa-that-could-damage-the-australian-startup-sector-its-a-serious-disadvantage-startupsmart\/"},"modified":"2023-10-20T15:39:09","modified_gmt":"2023-10-20T15:39:09","slug":"the-new-us-visa-that-could-damage-the-australian-startup-sector-its-a-serious-disadvantage-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/the-new-us-visa-that-could-damage-the-australian-startup-sector-its-a-serious-disadvantage-startupsmart\/","title":{"rendered":"The new US visa that could damage the Australian startup sector: \u201cIt\u2019s a serious disadvantage\u201d – StartupSmart"},"content":{"rendered":"
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A new US visa proposal aimed at luring the best entrepreneurs from around the world could increase Australia\u2019s brain drain and damage the growth of the ecosystem, with several entrepreneurs calling for the government to implement a similar policy.<\/p>\n

The White House has released an outline of a proposed Startup Visa that could allow startup founders to live and work in the US for up to five years while building a high-growth tech company.<\/p>\n

Up to three co-founders will be able to apply for the visa, which will allow for a two year stay upfront and the potential for a further three years.<\/p>\n

For a startup to qualify it must have been founded less than three years ago in the US, have the potential for rapid growth and job creation and have secured at least $US345,000 in private investment or $US100,000 in government grants.<\/p>\n

The applying co-founders must hold at least 15% equity in their company, have a central and active role and being able to prove existing household income of at least $US80,000.<\/p>\n

The visa proposal is similar to startup visas in the UK and Canada, with the Australian government revealing its own Entrepreneur Visa in last year\u2019s $1 billion Innovation Statement.<\/a><\/p>\n

According to a consultation paper revealed in February, this visa will provide a permanent residency for entrepreneurs with \u201cinnovative ideas and financial backing from a third party\u201d.<\/p>\n

\u201cIt is critical for Australia\u2019s prosperity and growth, that we not only tap into the best entrepreneurial minds in Australia but we also make it easier for talent from overseas to contribute to this country\u2019s innovation future,\u201d former innovation minister Christopher Pyne said at the time.<\/p>\n

\u201cWe are also keen to retain those educated and talented people, who have come to Australia and developed their knowledge base during their time in this country.\u201d<\/p>\n

Increasing the brain drain<\/h3>\n

The US visa proposal is directly aimed at luring the best and most talented startup founders from around the world, and several Australian entrepreneurs have voiced concerns that it could increase the much-talked about \u201cbrain drain\u201d to Silicon Valley and other startup hubs around the world.<\/p>\n

Brosa co-founder and CEO Ivan Lim says that he would\u2019ve possibly relocated to the US had the visa been around when he launched his startup.<\/p>\n

\u201cIf this type of visa were around when we started Brosa in 2014 we would\u2019ve seriously considered it and explored the possibility further,\u201d Lim says.<\/p>\n

\u201cThe USA is a bigger market with strong people and a strong entrepreneurship scene.\u201d<\/p>\n

Australian immigration policies are holding the innovation sector back already, Tank Stream Labs CEO Bradley Delamare says.<\/p>\n

\u201cIt\u2019s incredibly difficult for Australian entrepreneurs to import foreign talent in the same way large companies can,\u201d Delamare says.<\/p>\n

\u201cIt\u2019s a serious disadvantage for startups here, especially when we have a skills shortage in the tech space.\u201d<\/p>\n

A new startup visa<\/h3>\n

Urge co-founder Doron Ostrin agrees, saying that the Turnbull government should look to replicate the Startup Visa proposal in the US.<\/p>\n

\u201cThe current Australian immigration policies are so strict \u2013 introducing a similar bill for entrepreneurs to setup companies in Australia would definitely entice people to move here and create jobs,\u201d Ostrin says.<\/p>\n

Lim says that Australia is a very enticing place for international founders to set up shop, but the current policies are preventing them from doing so.<\/p>\n

\u201cWe should always be looking to attract the brightest talent from Australia and also from all around the world to Australia,\u201d he says.<\/p>\n

\u201cThree of our capital cities are in the top seven in the world\u2019s most liveable rankings. I\u2019m sure a lot of international entrepreneurs and engineers also want to come to Australia.<\/p>\n

\u201cThese people are very smart and talented but because of the red tape they\u2019re not able to move forward. The government needs to work with the startup community to talk through and explore this idea, especially as the country is moving away from the mining boom to the ideas boom.\u201d<\/p>\n

Delamare says that although the US proposal could ultimately help local startups to expand, Australia needs to relax its immigration laws if it wants to compete on the global stage.<\/p>\n

\u201cI think the Turnbull government should take inspiration from the Startup Visa,\u201d he says.<\/p>\n

\u201cAustralia has such strict immigration laws that prohibit movement. If we implemented a strategy like this it would really open up the door to creatives from all over the world and help to stimulate growth in tech and innovation here.\u201d<\/p>\n

Follow StartupSmart on<\/em> Facebook,<\/em> Twitter, <\/em>LinkedIn. <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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