this is well-argued. i wonder though if there is another back story... that immigrants seek venture backing because they don't have access to other sources of capital?
Begin forwarded message: > > http://www.venturebeat.com/contributors/2006/11/15/note-to- > washington-about-half-of-vc-backed-company-founders-are-immigrants/ > > Note to Washington: About half of VC-backed company founders are > immigrants > By Mark Heesen 11.15.06 > > Mark Heesen > For those who live and work in Silicon Valley, the positive impact > of foreign nationals on the region is obvious. The area has long > been a magnet for the best and brightest students, entrepreneurs > and professionals from all over the world to thrive. Just look at > some of the companies that were founded by these individuals and > you start to get a sense as to their value – to our lives and to > our economy. > > Imagine if Jerry Yang had stayed in Taiwan and had not been able to > immigrate to the US as a child? Or Andy Grove remained in Hungary? > Or Sergey Brin was now living in Russia? Companies that have > changed the way we live, work and think would certainly not be > headquartered here – and maybe wouldn’t exist at all. > > The venture capital community has long understood the importance of > making sure the cream of crop continues to come to the US to build > businesses. In the past, based on anecdotes, we had estimated that > at least half of our member’s portfolio companies had at least one > immigrant founder. But no one ever made a serious attempt to > quantify it until now. > > Today the National Venture Capital Association (NVCA) is releasing > a study that reveals some astounding numbers regarding the national > prevalence and the contributions of immigrant entrepreneurs to our > economic health – and highlights again the urgent need to fix our > immigration policies before the US loses its global innovation > leadership. > > NVCA has been involved for years in the effort to reform H1-B visa > and green card policies. But given the increased rancor of the > immigration debate this year, the focus on illegal immigration, and > the strong sense within the venture community that these issues > impact US competitiveness we decided we needed hard data to really > make the case. The study speaks for itself in terms of the dramatic > impact immigrant entrepreneurs have had on the US economy. > > In terms of positive impact, the numbers are impressive: > > • Companies founded by immigrants and initially backed by venture > capital account for more than $500 billion of total U.S. market > capitalization. > > • Over the past 15 years, in fact, immigrants have started 25 > percent of all the venture-backed companies that have gone public. > > • Immigrant-founded, venture-backed public companies today employ > an estimated 220,000 people in the United States and over 400,000 > people globally > > Quality may be more important than quantity, however, as these > companies – concentrated largely in cutting edge sectors – tend to > generate white collar jobs that pay high salaries, which in turn > help to create wealth and raise living standards. > > We also looked to test the premise that half of the current venture- > backed companies had at least one immigrant founder. We surveyed > these companies and garnered more than 340 responses from around > the country. It appears our intuition was in the ballpark. Of those > responding to the survey, nearly half (47 percent) of the founders > of private companies were immigrants, and almost two-thirds (66 > percent) of the immigrant have already started or intend to start > more companies in the United States. > > While the successes have been great for our industry and the US > economy, they also suggest an alarming reality: The US is > essentially stunting its own growth by not reforming its > immigration system with the proper urgency. > > Responses to the NVCA survey bear this out: > > • More than 2/3 of immigrant entrepreneurs agreed with the notion > that U.S. immigration policy has made it more difficult than in the > past to start a business in America. > > • Sixty-six percent of respondents who use H-1B visas indicated > that “current U.S. immigration laws affecting skilled professionals > harm American competitiveness.” > > • Among companies who use H-1B visas, nearly 40 percent said the > lack of H-1B visas –has “negatively impacted [their] company when > competing against other firms globally.” > > • One-third of the respondents indicated that the lack of H-1B > visas had influenced their firm’s decision to place more personnel > in facilities abroad. > > Fortunately, it’s not too late. According to the research, 95 > percent of the immigrant founders in private companies would still > start their companies in the United States if given the choice > today. By raising the H-1B cap, among other measures, we can ensure > that America continues to draw the world’s best and brightest minds > – and thus share in the wealth that they create as crucial > participants in the US innovation economy. > > To view the entire report – including methodology, etc. – please go > to www.nvca.org/pdf/AmericanMade_study.pdf --~--~---------~--~----~------------~-------~--~----~ TELECOM-CITIES Current searchable archives (Feb. 1, 2006 to present) at http://www.mail-archive.com/[email protected]/ Old searchble archives at http://www.mail-archive.com/[email protected]/ -~----------~----~----~----~------~----~------~--~---
