US, UK soften visa rules to attract VCs

Two epicentres of venture capital, the US and UK, are looking to draw more money and entrepreneurial talent to their shores by relaxing visa rules.

In a move designed to boost UK start-up companies, foreign entrepreneurs who’ve secured at least £200,000 from venture capitalists or angel investors will be given the right to settle within three years if they’ve created ten jobs or post a turnover of at least £5 million over that period. 

The new rules also allow visa applicants with £50,000 in secured capital to enter the UK in search of further financing and begin starting their business before switching to a more permanent visa category.

The US Congress will consider similar rules albeit with higher thresholds. Under the “Startup Visa Act” foreign entrepreneurs will be granted a green card should they raise at least $250,000 in financing for their startups, $100,000 of which must come from venture capital firms or angel investors.

US-bound entrepreneurs aiming to settle must also have created five jobs and generated $500,000 in annual revenue within two years of launching their business.

“Global competition for talent and investment grows more intense daily and the US must step up or be left behind,” said Senator John Kerry, one of the bills co-sponsors, in a statement.

Separately, the UK government has also created a fast-track scheme for wealthy foreign-born investors and entrepreneurs to settle indefinitely in the country. Beginning 6 April, individuals who maintain at least £5 million in a UK bank account can settle in the country after three years, as opposed to the current five. Those with at least £10 million in UK banks can settle one year quicker.