The Big Story: Recognizing the contributions of immigrant entrepreneurs.
Throughout the month of June, we celebrate Immigrant Heritage Month and recognize the impact of the immigrant community in the U. S., including on the country’s startup ecosystem. As the nation reflects on the significant contributions of this community as a whole, it is important to acknowledge and uplift the stories of immigrant entrepreneurs and recognize the challenges these founders face.
Immigrant startup founders are integral to the U.S. innovation ecosystem, with more than half of the nation’s billion dollar startups founded, at least in part, by immigrants. These founders, and the companies they launch, are a critical source of U.S. job creation and economic growth, responsible for countless new innovative products and services. As Nicky Goulimis, Co-Founder & COO of Nova Credit, said, “[a]lmost every study shows that immigrants don’t take away jobs but, rather, that they create them.” And a report published by FWD.us this week supports this argument, finding that providing a pathway to citizenship for undocumented immigrants in the U.S. would add $149 billion annually to the country’s economy.
But limited visa options, both for founders and high-skilled workers, means the U.S. risks losing innovative companies to nations with more welcoming immigration systems. And U.S.-based startups continue to struggle to fill talent gaps made worse by the obstacles to hiring foreign-born workers. Immigrant founders, like Jifei Ou of OPT Industries, tell Engine that even if they are able to find a way to navigate the immigration system that allows them to stay in the U.S. and build their company, there are numerous others just like them that aren’t able to start their own businesses in the current system. And Manan Mehta of Unshackled Ventures told us this week, “many [immigrant] entrepreneurs like us were moonlighting, wanting to go full time, but didn't have the playbook or the ability to build their company. If we were to challenge the status quo and invest in underrepresented entrepreneurs, we actually could grow the size of the pie.”
As we continue to celebrate Immigrant Heritage Month throughout the month of June, policymakers and the startup ecosystem must continue to support the next generation of immigrant founders and remember the numerous contributions of immigrant entrepreneurs all across our country.
Policy Roundup:
Evaluating competition proposals with the startup perspective. Ahead of next week’s House Judiciary markup of several legislative proposals, we took a look at one that could make it harder for startups to be acquired. As we explored in our State of the Startup Ecosystem report earlier this year, acquisitions are a critical part of the startup ecosystem and are closely related to overall investment. Acquisitions tend to be a valuable exit opportunity, especially outside of the country’s top innovation hubs, like Silicon Valley and New York City.
U.S.-EU form council to tackle tech issues. As part of the U.S-EU summit held earlier this week, the U.S. and EU formally established a Trade and Technology Council to cooperate on technology issues including the ongoing semiconductor shortage, standards for artificial intelligence and Internet-connected devices, and global competitiveness.
Engine joins the challenge of Florida’s social media law. Engine joined eight industry and civil society groups in an amicus brief opposing a Florida law that will make it harder for Internet companies to moderate content on their websites and services. The brief followed a lawsuit from last month brought by the Computer Communications Industry Association and NetChoice, arguing that the new law is unconstitutional and violates federal law.
U.S. won’t support global tax plan with carve out for China. This week, Treasury Secretary Yellen announced that the United States would not agree to a global tax plan that provides special treatment for China. Though the G7 recently announced an agreement on a global minimum tax of 15 percent, some countries, including China, use corporate tax incentives to attract foreign investment. Reports have surfaced indicating China may demand carve outs in exchange for supporting the rate, the U.S. has indicated they will not back a deal “filled with loopholes.”
Startup Roundup:
#StartupsEverywhere: San Francisco, California. Manan Mehta is a founding partner of Unshackled Ventures, a venture capital fund supporting immigrant entrepreneurs. We sat down with Mehta to discuss how Unshackled Ventures started, the impact of COVID-19 on their investments, and how the government can better support immigrant entrepreneurs.
Startup Policy Seminar Series: Patent Policy & Your Startup. Join Engine on July 20 at 4 p.m. ET where, together with an expert panel, we will explore topics related to patent policy. We will discuss how patents can impact any startup—whether or not it applies for its own patents. And we will highlight how startups can get involved with policymakers, both to ensure balanced, commonsense frameworks continue to govern patent law and to promote improvements in patent quality. The event will feature a panel discussion moderated by Engine’s IP Counsel, Abby Rives. You can RSVP here.
