Tag Archives: entrepreneur visa news

French Tech Ticket: A Financial incentive to foreign Entrepreneurs

France wants to attract foreign entrepreneurs and startups.

Foreign entrepreneurs granted the new French Entrepreneur visa (also called French Tech Ticket) will be provided with a grant of12,500Euros which will be exempted of income tax and social taxation (CSG-CRDS) – as agreed by the French Parliament in the amendment of a law on international investment.

The French Gov and the city of Paris launched the French Tech Ticket visa this year to promote its startup eco-system worldwide. This financial incentive aims to attract and support foreign entrepreneurs starting innovative companies in France.

The French Tech Ticket acts as a comprehensive  “Welcome Pack” for foreign entrepreneurs. Successful applicants will benefit from a fast track visa process to obtain a work visa and receive  – on top of a grant of 12,500Euros per founder (maximum 3 people) –  an office space in a partner startup incubator, support on settling down and discounts on Air France flights.

The grant of 12.500Euros is renewable after 6 months if the project shows traction. Next year, the French Tech Ticket should be extended to the whole country incubators. For now, the French Tech Ticket works only with foreign entrepreneurs wanting to relocate in Paris.

Making Economic Sense

This measure to exempt the grant of taxes comes as natural as the 12,500Euros are granted by the French Government through the BPI. Indeed, a taxation on a government subsidy would not make much sense.

The successful applicants to the French Tech Ticket will be announced next January. In total, 722 startup business proposals were submitted last September by 1,372 entrepreneurial candidats. Only 50 of them will be granted the visa.

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Interested in Startup Visa Schemes? Download Migreat Report on Startup Visas programmes or read our latest blog post on the countries accepting entrepreneurs in 2015.

Migreat’s Recommendations for Improving the UK’s Entrepreneur Visa Route Taken on board by the MAC

Migreat welcomes the Migration Advisory Committee’s (MAC) latest recommendations to the UK government regarding changes to the UK Entrepreneur visa route for individuals seeking to set up businesses in the UK.

In the report published on Thursday the 29th of October, the government’s immigration experts have called for an overhaul of the visa system for entrepreneurs after finding substantial evidence of low-quality businesses established by applicants previously granted the visa.

The MAC advised that there should be a more thought-out process for the immigration of foreign entrepreneurs and suggested two main reforms 

  • The selection process should involve industry experts rather than case workers. It could be done by appointing a panel of experts with expertise in early-stage entrepreneurship, such as angel investors or venture capitalists; recruiting specialist immigration officers qualified to review business plans; working with other government departments such as UKTI or BIS; or outsourcing the assessment of business plans to a professional services firm.
  • The minimum amount and source of money should include business angels. In particular, the Home Office could work with UKTI and the UK Business Angels Association (UKBAA) to explore the feasibility of approving selected angel investor networks or syndicates (like accelerator programmes) to provide third party endorsement.

Lastly, the MAC suggested to introduce a specific visa route for talented entrepreneurs looking to establish start-up businesses in the UK similar to a startup visa scheme in order to attract more innovative entrepreneurs.

These recommendations are the exact same suggestions Migreat made last March 2014 to the UK Government in its report on the UK Entrepreneur visa.

Migreat is delighted to see its recommendations reflected in the MAC report and strongly believes that these recommendations will make a difference for many talented applicants who have been rejected for issues as minor as improperly filling out forms. It is great news in particular for foreign entrepreneurs with limited access to capital and for early stage startups.

French Startup Visa: 1,400 Foreign Entrepreneurs knocking on the doors of Paris

1,372 people from across the globe have expressed a wish to start an innovative company in Paris, France this year through the French Government new Startup Visa Programme, the French Tech Ticket.

Launched this May, the French Startup Visa is for non-French entrepreneurs who have an idea for creating or expanding a startup. During the call for proposals, which ended on 15 September, 722 startup projects were submitted, for a total of 1,372 applicants and 5,677 expressions of interest from over 90 countries.

A Frank Success
The numbers outspace by far the number of applicants to most European equivalent of Startup Visa programmes. Migreat Startup Visa report counted that on average, similar programs have received 20 to 100 of applications through their first years.

It is a definite confirmation for Axelle Lemaire, Minister of State for Digital Affairs, that France has grown a strong “international appeal” she says and “for this fantastic startup momentum to continue” she adds “we now need to work with entrepreneurs from around the world and (…) later [expand the French Startup Visa programme] to other French Tech Metropoles throughout France.”

Paris, growing hub for international startups
Buoyed by the success of forerunners such as Criteo, Withings, and Sigfox, the recent news of $200 raised by Blablacar, the acquisition of Leetchi, the plans for Deezer to go public, and with the support of the French government, which launched the French Tech initiative, French startup have reached cruising speed in recent years!

Paris is a world leader in the innovation economy: “Number one city in the world for innovation and intellectual capital” and “third most appealing city for foreign investment”.

Next
The fifty winners of the first edition of Paris French Tech Ticket will be announced in December. Starting in January 2016, they will be welcomed into a dozen support structures and partner incubators.

Upcoming stages in the selection process:
1- By the end of September: a pre-selection process will choose 500 eligible projects, in order of submission
2- October: the 500 projects will be reviewed by a panel of experts. Seventy of them will be selected, and Skype interviews with the applicants will take place between 2 and 6 November
3- End of November: following the interview phase, the list of finalists and runners-up will be
4- January 2016: the 50 winning French Tech Ticket entrepreneurs will arrive in Paris

A new call for proposals will be launched early in 2016.

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Interested in Startup Visa Schemes? Download Migreat Report on Startup Visas programmes or read our latest blog post on the countries accepting entrepreneurs in 2015.

Which will be first to implement a Start-up visa: the US or the EU?

With so many governments launching start-up visa schemes this year, it makes us wonder whether the US or the EU will be first to start a comprehensive multi-state (in the EU case, multi-country) level.

Start-up Visas programs spreading like mushrooms
So far in 2015 Denmark, France and the Netherlands have already launched national programs to attract foreign entrepreneurs to start companies. Their visa schemes have a few things in common, not the least of which is to offer fast-track and specific processes to foreign entrepreneurs – with special guidance from local incubators to navigate the system. Denmark and France have put quotas in place. The Netherlands (wisely) has not.

European Countries Startup Visa Policies Map

In total, 7 countries in Europe have created start-up visa schemes, two that are outside of the Schengen area (Ireland & the UK).

In the US, strong business and tech lobbies have been pushing for an immigration reform that would introduce a US start-up visa. President Obama announced that the US will make it easier and faster for entrepreneurs to come to the US and start businesses but nothing has yet happened.

Meanwhile, a national non-profit was launched to help implement a fix to the US start-up visa process in places beyond Massachusetts and Colorado (where the program has already been launched). The Global Entrepreneur in Residence Program enables talented graduates to be sponsored by a US university and gain relevant part-time work experience while allowing them to work on their start-up.

Local & national schemes
All of these local initiatives have emerged due to the deadlock around immigration reforms presented at the US federal or EU level. As well as out of frustration from bureaucratic visa rules leaving talented migrants with no options other than leaving the country they are living in. These initiatives may be limited in their scope, however, they are growing in numbers and popularity. This is leading to other countries, like Israel and Germany, considering the implementation of similar programs.

Both Brussels and Washington are discussing ways to navigate and understand how start-up visa policies can benefit their respective economies and fit their long term objectives. Adeo Ressi, CEO of the Founder Institute, spoke with Forbes about White House representatives visiting Palo Alto in January and the strong desire from President Barack Obama to sign an executive order this year. Migreat has spoken at meetings in Brussels with several representative of the EU commission that is exploring ways to introduce a start-up visa directive that would fit in the 2020 EU agenda.

These programs could well provide the spark for the US and/or the EU to launch programs that attract talent, create jobs and foster innovation on a larger scale. The question that remains is whether the EU or the US will be first get started?

With the 2016 presidential election already ramping up in the US and the sensitivity around immigration in Europe, it is our bet that the US will be first; which means that for Europe to gain an advantage, the EU will need to create a better deal for foreign entrepreneurs than the US.

Download Migreat’s #StartupVisa report to learn more about the 13 countries that offer visa schemes for entrepreneurs worldwide.

A start-up Visa in France

France launched on wednesday a Startup Visa called the French Tech Ticket – a full package for entrepreneurs from all over the world willing to set up their startup in Paris.

Map Startup VIsa May 2015 (1)
Click on the infographic to be redirected to the full infographic and our library of immigration infographics. If you want to use it, please mention Migreat as the source and hyperlink it to this blog post.

What’s the programme?

The Programme targets entrepreneurs who may or may not already have a business in France, and who are, for example, completing their education and looking to create a startup. Teams must comprise one to three founding members, and a maximum of one French person per team.

The program provides

  1. Funding of €12,500 for 6 months, renewable so to give a year funding of a EUR 25K total to each team member.
  2. Free space in a partner incubator. What you find in spaces as such is access to training session, dedicated network and mentors to support a start-up growth.
  3. FrenchTech event access
  4. A Help Desk to provide assistance with red tape; and god knows how it can be useful in France.
  5. On top of things – and so so french: you get lower prices on Air France flights, a Gold loyalty card and advertising for the startup via Air France!

So what are you waiting for to apply? And who should apply?

Any entrepreneur with a scalable or innovative idea is welcomed in the programme – with a team of three people maximum and willing to give Paris incubator a try for six to a year.

Startup Visa France Incubators

Applications opened in June online with a questionnaire and a video pitch to submit. They close by end of September when a videoconference with selected applicants will be interviewed to develop the idea of the project. The final selection will be made by a committee comprising members of the French Tech Initiative, the Paris City Council, Bpifrance, Business France, the Directorate General for Enterprise (DGE), partner incubators and leading personalities of the tech & entrepreneurship scene.

The application process is now closed for 2015. Read more in our latest blog post on the next stages for successful applicants.

Paris entrepreneurial hub assets and strengths

France eco-system has grown over the years to be a significant player on the world map of start-up eco-systems: there are over 40 business incubators, 80 co-working spaces, 20 fab labs,  and close to 1,500 startups being set up annually. It has made itself famous thanks to the success stories of Critéo, Blablacar and Sarenza. A 33,000m2 incubator space, la Halle Freyssinet will open in November this year in the centre of Paris.

Interested in launching a start-up in Europe?

If the french programme still does not attract you – there are many more countries looking to attract entrepreneurs. They are all listed in one Startup Visa infographic and you can get the details of the program by downloading our report Open Borders to Entrepreneurs.

Are global entrepreneurs welcomed to the UK?

Taking a closer look at what is keeping global entrepreneurs from fully accessing the UK’s thriving startup scene, and what we can do to change this.

This morning, Emerge, the UK’s leading education accelerator program for startups, hosted its final demo day – an occasion for their cohort of innovative startups to showcase initial results and progress to potential investors.

Since its inaugural class in 2010, Emerge has not only grown quickly a network of entrepreneurs and investors in the education space in the UK, but also a solid reputation to attract innovative entrepreneurs. Out of the 136 startups applications for the last program, almost half were coming from outside the European Union (US 27%, India 6%, China 3%, Canada 3%). A similar ratio regarding the nationalities of applicants is found at other leading accelerators like StartupBootcamp or Collider.

Screen shot 2015-04-23 at 10.05.59
Emerge conference last September 2014

The visa wall
And this has been a growing paradoxical problem for accelerators: as their programs become more and more popular worldwide, they receive numerous applications from entrepreneurs outside the EU, for which UK visa rules are nothing but easy to comply by for these kind of innovative startups.

Last year Collider had to drop last minute a selected team from Pakistan because they could not comply with the strict rules in time. Emerge reports much visa hassle and stress with founders from non-EU countries. Already, two of their non-EU startup have decided to return to their home country after the program as they do not qualify for the entrepreneur visa yet. Similar stories can be heard from other accelerators with which Migreat works.

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Entrepreneur looking to learn more about Emerge Lab

For non-EU nationals, successfully navigating the entire application and selection process at an accelerator does not guarantee that you will gain entry to the UK – because non-EU migrant needs a visa. Worse, since the current entrepreneur visa was not designed with technology startups in mind, once accepted, visas are only to be temporary and have no guarantee of renewal. In 2014, one out of two entrepreneurs failed the renewal of their entrepreneur visa.
Working for a simpler and more flexible immigration system
This highlight the limits of UK’s bureaucratic immigration system: a system that is thought with in mind a tick the box mentality of what Government think is an entrepreneur and startup.

This issue is well known in the startup community in London and is why think tank & lobby groups like Coadec, Centre for entrepreneurs, Tech London advocates, The Entrepreneurs Network and businesses like Migreat exist.

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Emerge lab brainstorming meeting

They help give a voice to issues faced by entrepreneurial migrants within the UK’s economy – and help solve them. The UK Government is also listening – the Migration Advisory Committee is currently calling for evidence of the economic impact of the entrepreneur visa route.
The solutions ahead
There is a quick solution to this growing issue of recruitment of global entrepreneurs in the UK.

Currently there are five accelerators on the list of UKTI that have a competitive advantage: they can fast track the applications for entrepreneurs accepted into their programs. Better, entrepreneurs accepted at those accelerators benefit from a rebate; instead of having to apply for the visa showing demonstrating £200K in a UK bank account, they “only” need to show £50K – which makes much more sense for early stage and internet startups. It would help a little if more serious accelerators where on the list.

This being said, the goal of the UK startup community should be to ensure that not only the entrepreneurs and startup accepted at accelerator can take advantage of a fast tracked visa process. The goal is to make it fair for every entrepreneur that wants to build a successful business in the UK to be able to do so without the visa-hassle. It would significantly help if a few tweaks regarding the visa process were rethought with the help of foreign entrepreneurs and the startup community itself.

Migreat.com published a report on this exact issue in 2014. It discussed the four main issues of the visa process, taken directly from the experience of 60 global entrepreneurs, and suggested four ways that these problems could be tackled right away.

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Credit Emerge Lab 2014

Call to action
Migreat supports the immigration of the best and brightest entrepreneurs to the UK and has started to work beyond – at a European level – to help immigration of the ones that will create jobs, wealth and businesses.

If you’re a global entrepreneur looking to start a company in the UK or Europe or that has started a company in the UK or in the EU, simply join our linkedin group to receive the latest news on visa and immigration policies for entrepreneurs and startups.

This way, when Governments or the EU Commission approaches Migreat to advise reforms of their immigration system, we will be able to provide suggestions of entrepreneurs who have ideas on how to do so!

Migreat to advise the EU commission on Entrepreneurial migration policies

Migreat has been appointed by the European Commission to advise as an expert on how to attract migrant entrepreneurs to Europe.

Following a call made out last January by the European Commission’s Directorate General for Migration and Home Affairs, Migreat received an invitation to take part in a temporary expert group set up to discuss economic migration to Europe and how to attract highly skilled talents.

The Expert group will discuss economic migration issues with the view to contribute to the elaboration of a new European policy on legal migration and a review of the Blue Card Directive.

There is a real need for the EU blue card to perform its full potential of becoming the equivalent of the US green card. The EU is suffering from specific skills shortages and needs to become a more open and attractive destination for talented workers who would consider migrating elsewhere.

The expert group meets for the first time in Brussels this March 2015 to discuss the opportunities and limitations of the EU Blue card in attracting the best and brightest talents.

Migreat Entrepreneur Visa Global Map
Migreat Entrepreneur Visa Global Map 2014

As a practitioner and expert on the migration of entrepreneurs, Migreat was chosen to lead on the questions that cover visa schemes for graduate students, entrepreneurs and start-up visas.

Migreat will be able to share fresh insights thanks to data gathered with its online visa wizard app helping thousands of economic migrants navigate the European visa system daily.

Migreat receives daily request from foreign entrepreneurs and highly skilled migrants to Europe. It is our mission to make sure these international talents are assisted by top immigration lawyers whereby they don’t get turned away by the bureaucracy of the visa system.” says Tara, Business Development Manager.

Migreat reported evidence to the UK Government on bureaucratic issues with entrepreneurial migrant visa applications processing in a report on the UK Entrepreneur visa last year.

Migreat which frequently advises the UK Government on highly skilled migration, is delighted to contribute to the EU Commission Expert group on migration.

It comes at the same time as Migreat launches its online community platforms for migrants living in capitals of Europe (LondonParis, Milan, Hamburg, Berlin, Cologne, Stuttgart, Madrid).

Is a front door for migrant Entrepreneurs opening in the US?

Migrant Entrepreneurs in the US will get special visa treatment in the near future and this is big news for a growing number of global entrepreneurs.

Credit to Beatrice Murch
Credit to Beatrice Murch

Obama announced the creation of a temporary work visa for undocumented migrants living in the US last November along an easier visa route for entrepreneurs and startup founders. This last news was received with enthusiasm and also some disappointment from Silicon Valley entrepreneurs. Inc. wrote an excellent article summarising what is at stake for startups and the US economy.

From the look of it, this announcement seems to point at the creation of a fast-tracked visa process for entrepreneurs and founders. This means that applications of entrepreneurs would get processed faster, using an existing provision known as “parole”. It will allow startup founders to enter the U.S provided they show they can create jobs and revenue from their venture.

As Tahmina Watson writes for GeekWire

In 2012, the administration allowed entrepreneurs to use this [provision] if they could prove job creation and revenue generation or attracting investment. However, there was not enough guidance provided for this and as a result, utilization was low. Now, under executive action, guidance is expected.

This announcement did no go into the details. As such, Obama’s speech could lead to the creation of a complete new visa for entrepreneurs, similar to the “startup visa” silicon valley entrepreneurs have been lobbying for since 2009. A Startup Visa would create a visa category for foreign entrepreneurs who have raised capital from qualified American investors. From the startup visa act draft, such visa would be a temporary work visa. It would be tied to investment thresholds as well as job & revenue creation targets to meet.

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Craig Montuori joined on the phone by Migreat to comment on Obama’s announcement, suggested that a startup visa would likely take a year to be implemented.

It would be a preferred option for Entrepreneur visa for the US on the long term: “what would make a startup visa work and be a success relies on fast processing, predictability and it to be easily repeatable. In other words, if a clear Entrepreneur category is created in the immigration system, it create a clear legal status for entrepreneurs to trust and a law to point at to if any trouble. This is what is lacking at the moment with the current system.”

Allowing more foreign entrepreneurs in the country and facilitating their legal stay would create 1,6 million jobs in the next ten years according to a recent study by the Kauffman Foundation. Those migrants would not just be coming from Latin America, but could come from more countries like Greece, Iran, Lebanon or Korea. Migreat produced an infographic earlier this year on the nationalities of most US foreign entrepreneurs as the infographic shows below.

infographic-final
Where US Entrepreneurial migrants are from in one infographic

Stay tuned for more updates from Migreat on the topic of Startup visas worldwide. Follow our blog and check our entrepreneur & startup visa sections.

An Italian Startup Visa Announced

[This blog post has been updated after the launch of an Italian startup visa last June 2014 – for more info read our newest blog post on the Italian Startup visa Eligibility criteria]

A similar program to the Chilean startup visa could emerge from Italy in the next months.

Mattia Corbetta
Mattia Corbetta, consultant at the Ministry of Economic Development

Mattia Corbetta, consultant at the Ministry of  Economic Development and member of the Minister’s Technical Secretariat, discussed the topic of a startup visa in his interview with ‘La Fonderia dei Talenty’ (The Talent’s Forge) last month. He talked about the Development Decree 2.0, the government initiative to sustain innovative enterprises, and announces the italian government is planning a specific visa for entrepreneurs and startups:

In a month we’ll introduce the Italian Startup Visa, with a simplified procedure for the extra EU entrepreneur or startupper that would like to found their enterprise in Italy.

Migreat offers you to navigate the immigration system without having to go through the legal jargon and search hassle
Migreat offers you to navigate the immigration system without having to go through the legal jargon and search hassle

The Ministry for Economic Development will be in charge of granting the visa: the request will reach them through the internet, the enterprises will be put in different categories corresponding to innovative or interesting sectors for the Italian Economy and an expert committee will assess the business plan. The Italian Ministry want to make the process acts as a fast track to the visa for entrepreneurs: the application process should last no more than 4 weeks.

The granting of the temporary visa will composed of two stages: a first 12 months will be given to the entrepreneur and its startup to set up the business. After the 12 months, the entrepreneur will have to show the effective creation of the company and, in that case, the visa will be automatically renewed for 3 years. 

All the disposition about the Italian Startup Visa are part of a plan including tax breaks aimed to lower registration costs for innovative startups. Among the main fields promoted for the foreign innovation companies are considered: high tech, digital information, artisanal and industrial products, and services for R&D and agriculture.

This news comes at the same time that

It is exciting times for global entrepreneurs wanting to start a business in the UK in 2014!

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Need assistance on Italian visas? Ask Migreat’s immigration expert for free. 

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Migreat Entrepreneur Visa Report Launch Event

The panel for the event: Matt Smith (centre for Entrepreneurs), John Mc Gee (Department of Business Innocation and Skills), Leslie Sarma (Tech London Advocates), Jennifer Arcuri (Innotech Summit) Josephine Goube (Migreat & Sharehoods) Julian Blake (Tech City Insider)
The panel for the event: Matt Smith (centre for Entrepreneurs), John Mc Gee (Department of Business Innocation and Skills), Leslie Sarma (Tech London Advocates), Jennifer Arcuri (Innotech Summit) Josephine Goube (Migreat & Sharehoods) Julian Blake (Tech City Insider)

Last Wednesday, Migreat’s roundtable offered a stage for migrant entrepreneurs, organisation helping those global entrepreneurs in the UK and policy makers to share concerns and ideas on how to make immigration for entrepreneurs work better from an administrative perspective.

The roundtable was the occasion for Migreat to launch its report on the UK Entrepreneur visa application process and share its findings.

I – The report findings and recommendations for an immigration policy that attracts entrepreneurs

Entitled ‘A UK Immigration System Open to Innovation and Promising Entrepreneurs?’, the report highlights the common pitfalls and administrative challenges associated with the visa application process and makes four simple recommendations that could significantly improve the visa process at little to no cost:

  1. Return passports within a few days.
  2. Increase the flexibility in the format of documents that are accepted.
  3. Align rules on the timing of the funding process with the reality of the funding cycles of startups.
  4. Involve experienced third parties in the genuine entrepreneur test interviews.

The report findings were reported in the press by the Huffington Post, Management Today and Tech City among many other publications, and spread on Twitter with real enthusiasm.

Josephine Goube, head of Migreat, presenting the findings of the report
Josephine Goube, head of Migreat, presenting the findings of the report

The report was officially recognised and supported by Business Secretary Vince Cable who said:

This is a timely report in light of the recent controversy over migrant entrepreneurs as UK job creators. It’s important that we get this route right to ensure that the next migrant business success stories, like Caffe Nero or Last.fm, don’t slip through the UK’s fingers. We must send a clear signal that we are open to business.

It caused the Home Office to issue an official reply later that morning that confirmed the commitment of the actual government to attract global talents and doing so, with keeping a focus on security and abuse issues:

We are building an immigration system that works in the national interest as part of our long term economic plan. One that is fair to hard-working British citizens and legitimate migrants and tough on those who break the rules or flout the law.

Josephine introducing the report findings
Josephine Goube author of the report

II – Feedback on the recommendations

In the room, the discussion which followed the presentation of the report, concentrated on whether the recommendations could be considered by the Government and if yes how could it be implemented.

John McGee reacting to Migreat's report recommendations
John McGee reacting to Migreat’s report recommendations

John McGee, Head of Migration for the Department of Business Innovation and Skills, explained first that overall, the measures proposed, even if simple, were not just administrative processes, but suggested an overall change of perspective on the visa application review, that would consequently require slight changes in policies. Hence, it would take a bit of time, and lots of efforts.

1. The UKVI holds on to your passport — the problem is the processing times

On the first recommendation, the return of passport to their owners as soon as possible, John highlighted that the issue was very much a security issue – The UKVI and Home Office are not comfortable with the idea of having a visa applicant travelling abroad while applying for a visa in the UK, and for right reasons –  however, this problem is hiding the real issue: long processing times.

John McGee, representing BIS and Leslie Sarma representing TLA
John McGee, representing BIS and Leslie Sarma representing TLA

Leslie Sarma, from Tech London Advocates, confirmed the real problem is unpredictable and long processing times. However, in defence, she mentioned that UKVI offers applicants to stay in the country legally even if their visa is expired in case their application is still pending, in UKVI hands. As such, she concluded, it is already a good news that someone does not have to worry about applying 6 to 8 weeks prior to his/her visa expires, and that any prospective applicant can apply the day before the visa expires – and still legally stay in the country.

2. The documents — Goods news! Changes are coming

Leslie was the first to announce the good news. Changes in April next week are happening in the format of the letter the UKVI asks foreign entrepreneurs to show. A slight change in the wording of the letter from the bank should make it easier for entrepreneurs to prove that the money is accessible to them.

Leslie announcing the changes for next April
Leslie announcing the changes for next April

3. The Cycle of funding — a “good point” according to John that unfortunately is unlikely to change in the near future

Several member of the audience during the Questions & Answers highlighted that Venture capitalists money is not easy to raise, and that early-stage startups do not raise funds before having a solid business model. A research from the US shows that most VCs invest in startups in their fourth year on average, when they have proven a working model. John suggested that this was not ay time soon to be revised or changed. Matt, founder of the Centre for Entrepreneurs, argued that a new visa, a startup visa, would perhaps be something that could take care of helping those entrepreneurs.

Is there going to be more flexibility allowed in the terms of fundings sources and timings?
Is there going to be more flexibility allowed in the terms of fundings sources and timings?

Reacting to this, Josephine, head of partnerships and communications at Migreat, offered to look at other example of Entrepreneur and startup visa worldwide that have gone to solve that issue around fundings. Josephine explained why the UK immigration system when compared to other existing visa worldwide, is one of the strictest. The UK asks entrepreneurs to show access to 200K Pounds Sterlings so approx $309K, compared to Canada which asks a different bracket of amounts depending on the source of the money and no money when the entrepreneur is accepted in one of the country’s incubator; or Chile which gives $40K to entrepreneurs coming; or Singapore which asks only for $40K no matter what the source.

Jennifer Arcuri and Josephine  Goube comparing the US and the UK immigration policies for entrepreneurs
Jennifer Arcuri and Josephine Goube comparing the US and the UK immigration policies for entrepreneurs

Josephine mentioned that New Zealand’s new Entrepreneur Visa (called the Entrepreneur Work Visa), that gives progressive steps to the starting of the business and acquisition of the visa, might be one example inspiring the UK on that matter. The entrepreneur is given initially 12 months to buy or establish their business (called the start-up stage), and then grant them 24 months when they have proved they did so or have undertaken steps to do so (the balance stage). More comparison can be explored through the below graphs and are explained in the report.

4. The interview — A need to get more expert in the process.

A social entrepreneur in the audience raised the case of social entrepreneurs being turned away by the requirements, and being limited in their capacity to demonstrate to case workers during the Genuine Entrepreneur Interview Test that their “social” business model can work: “I am sure to be told that I have no business model or ability to run a business if I bring them the term social”. John nodded at this comment and confirmed that this problem was heard and known by UKTI and BIS, and repeated that there was a need for more stories and evidence like this to make things change if change they want to see.

A social Entrepreneur from Egypt
A social Entrepreneur from Egypt

Overall, the consistent and repeated message that came across from both the entrepreneurial community and the Government’s representatives was that a better understanding of foreign entrepreneur’s reality was needed – and as such the involvement of third parties in the application process, or sharing of industry knowledge in between the UKVI and the Business community is the way to solve the issues raised.

John McGee (BIS), Matt Smith (Centre for Entrepreneurs) and Joey (NUS) discussing how to take this roundtable to the next level
John McGee (BIS), Matt Smith (Centre for Entrepreneurs) and Joey (NUS) discussing how to take this roundtable to the next level
Mig 62
Exchange of tips on visa between entrepreneurs

As such, the panel and the audience came to conclude that the roundtable is a first constructive step to gather that information and evidence. More work, relying on a follow up of this roundtable and collection of more evidence, would greatly help the department of Business Innovation and Skills and the Home Office work together to make the UK open for business, remains an attractive destination for global talent and not lose on the next Last.fm or Caffe Nero.

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If you are an entrepreneur and are in need of help for you visa application, Migreat is here to help you: ask questions on our Questions & Answers forum or connect for free with an immigration expert online.

More pictures of the event on Migreat Facebook Page.

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