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Starting-Up in America
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"Research shows that venture capital backed companies
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are about 150 times as likely as the average start-up to create jobs."
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— Scott Shane, Case Western Reserve University
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"When it comes to U.S. job growth, startup companies arent't everything.
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They're the only thing. New firms add an average of 3 million jobs
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in their first year, while older companies lose 1 million jobs annually."
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— Kauffman Foundation
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"Despite the fact that they constitute only 12% of the U.S. population,
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immigrants have started 52% of Silicon Valley's technology companies
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and contributed to more than 25% of our global patents."
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— Vivek Wadhwa, Harvard
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The Start-Up Visa act was introduced as a bill in Congress on
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February 14th, 2010 by John Kerry (D-MA) & Richard Lugar (R-IN)
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It gained overwhelming support from Silicon Valley entrepreneurs
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and venture capitalists
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It was allowed to expire at the end of the last congress in December 2010.
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San Francisco, January 2011
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My name is Tarik Ansari,
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after graduating in my home country, France,
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I came to Silicon Valley
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to work on cutting-edge web technology.
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As an entrepreneur starting a company in the US,
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your range of visa options is limited, if existent at all.
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You have to fit somewhere within the mold to get a visa.
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If you happen to be young
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and to be in the technology sector,
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most likely you don't fit anywhere.
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While I am building a start-up here in San Francisco,
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I have had a lot of stress myself,
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dealing with US immigration.
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There needs to be a visa that takes into account
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the talent and potential of entrepreneurs.
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It's an issue that affects a lot of entrepreneurs,
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but also jobs, investments
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and economic development at large.
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I decided to reach to some fellow entrepreneurs
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to speak out about the issue.
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I am Augusto Marietti, I am 22
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I graduated last year in economics
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from the University of Milan
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I am Ben Way, I am 30 years old,
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and I am one of the Rainmakers,
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one of the world's leading innovation corporate venture companies
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I am Brian, from Canada, from Vancouver
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I started a company called Kiip
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a few months back,
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we are a mobile in-game advertising platform
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Hey, I am Yu-Kai Chou, I am the founder of Viralogy and RewardMe
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and I have actually been in the states for a very long time
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I was here since middle-school
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because my father is a diplomat.
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My name is Ronald Mannak, I am from Holland orginally
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and I moved here to the US in July
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Hi, I am Carlo, I am from Italy
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and I own my company in Italy, we started in 2000
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and now, we produce a software, a software for entreprises
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Hi, I am Vinny Lingham, I am the founder and CEO
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of Yola.com
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I am from South Africa, I was born and raised there
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and I am started my first company in 2003
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So basically, MaShape, it's the first ever API Market Place
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API is an Application Programming Interface
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What I am doing is like a marketplace where you can sell
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not just the entire software, but the pieces
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and the components, that are going to create
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the software itself.
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I started in business when I was 15 years old, at 17
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I raised $40 million, to be become one of the first
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dot-com millionaires, I went home to advise
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the U.K. government, the U.S. government
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and the White House
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By the time I was 21, I had lost the lot.
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But I started again, and for the last 10 years
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we built-up a portfolio of companies
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37 businesses across 3 continents
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That's what I do
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I actually first moved-down from Vancouver
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to work at a company called Digg
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and my visa history with them is that I had
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an H1-B there while
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I was working on business development
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and then obviously I was affected by the layoffs
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and then I had to go ahead and figure out
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my next two steps
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and so Kiip was the next step
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and, most notably, I guess
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what's has happened over the last two months
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have been very interesting
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is, we managed to raise some seed financing
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from a VC firm, and some angel investors
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Apparently, I may be the youngest person
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to ever raise institutional VC capital
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So that's been a very interesting ride so far.
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RewardMe iteself is a, you could say
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it's a loyalty program for brick-and-mortar stores
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on the iPhone and Android phones
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Right now, brick-and-mortar stores are really strugling
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to be in business
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because there is so much competition
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there is a lot of discounting, rents are going higher
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so, they need something that engage their customers
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in a much more intimate manner
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so, instead of having them bash out discounts
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to people who don't care
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we want to give rewards to their most loyal customers
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and give them reasons to come back more often.
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I am working right now on a new
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hardware and software hybrid
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for the iPhone
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to be short, it's an air guitar for the iPhone
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We've got a motion-sensing guitar pick
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and some pretty cool software on the iPhone
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that lets you play air guitar
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That hasn't been done before, it's new
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and most of all, it's a lot of fun.
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MyK is a software platform for enterprises
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and we are able to gather feedback
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feedback for our customers
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and we help them to take better decisions
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based on the feedback.
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It's a sort of business intelligence application
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and we mix the transactionnals
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so it distills data and the feedback
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this way you have a better understanding of your business.
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With Yola, we came-up with the concept of
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making it easy for people to get online
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and connect with online marketing services
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What became evident in mid-2006, 2007
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is that the smaller businesses hadn't really gotten online yet
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the local businesses would-be participating
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in this huge explosion of being able to
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be found online and handle transactions online.
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So we had built a self-service tool, a self-service platform
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that really allow people to create their own Web presence
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and market and manage themselves on social networks
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Twitter, Foursquare etc.
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And has the service has evolved
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really create some service-tight integration with
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a single platform.
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Why come to the United States to start your business?
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This is the only place in the World, probably
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where you can build an innovative startup
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from the ground-up
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everything is here, the lawyers are here, the known
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is here from entrepreneurs
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how you build a company like this
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and the money is here.
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That's unique in the World.
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All the lawyers here, understand the technology
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all the lawyers are for startups.
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This is an example, consulting and accounting is the same.
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If you go in Europe, it's really rare to find a lawyer
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that understands venture capital investment
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seed, and stuff like that. They don't know.
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I like to say that, in San Francisco, the Bay Area
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there's been this, accelerate that's
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been poured over the entire area
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and everything just happens faster.
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So, if you want to do fashion, probably Milan
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or Paris is the best place, right.
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If you want to do finance; Singapore, London, New York
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are pretty nice, and Shanghai
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But if you want to do tech, nowadays
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San Francisco is the best place
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you have a better chance to succeed
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because all the people are here, the network is here
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the startups are here
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I like how this place really endorses innovation
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I want to be in an environment where everyone
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is willing to take risks based on innovative ideas
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not afraid to fail
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As much as I had a great idea, I also wanted to take
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the idea to Silicon Valley
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and I thought that, this is the place where you build
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instant companies
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So it really was, fulfillment of a personal goal
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an ambition of mine to live and work in United States.
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There is a reason why the Valley, is still the Valley
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And that it's still the head of the pack
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There was definitely a lot of opportunity there
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for me to build what I wanted to build.
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How does your project benefit the US economy?
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The last 20 years, all the jobs created
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in the United States, where created from startups
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out of those startups, 50% of those startups are created from immigrants
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That's a huge amount of new jobs created by people
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that actually, are not U.S. Citizens
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or not yet at that time
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And you notice, whenever there's holidays
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people fly home, no one is actually a San Francisco
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native, but they come here to make magic happen
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We've already employed 3 people full-time
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here in the United States
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and plan to hire another 4 to 5 in the next 2 months
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Our company will be an American company
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so it will provide, I think, at least 10
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but probably more jobs here.
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The turn-over rate for restaurants is huge
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because they always deal with more problems
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you know, the competition all discounting
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and these are stores that usually don't find
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innovative ways to do things, because very few
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of them have technology backgrounds
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So we are providing a technology that helps
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them stay in business for longer
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helps them become a more solid company
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and we know that a lot of the economy in the United States
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is driven by these brick-and-mortal stores.
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So far, we've raised over $25 million
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from investors whose money is set offshore
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they are foreign investors and the money came into the U.S.
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and that money basically became part of the U.S. economy
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and further the economy with us hiring people and
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paying salaries and expenses, rentals, etc.
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so there is a huge benefit to U.S. economy
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because it's one small company, we were able
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to create over 40 jobs from a single company
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and we're still growing, we are still building that business up.
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So currently, if you take our 5 businesses
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each business has its own set of employees
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and management team
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so not only do we employ multiple people
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for each businesses but we employ management
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for each one of these businesses as well
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so I am hoping, within a couple years
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we will employ over a 100 people in the United States.
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And these jobs are not just for having someone
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buys groceries, but these are jobs that help them
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create more innovation, that create more jobs in the future.
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I mean, if I am good I can create jobs in the United States
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of course, right, this is a consequence
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but to do that I have to stay here to have a successful company
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and to have a successful company, it's better to stay here.
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What problems have you run into as a foreigner
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trying to build a company here in the US?
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Going through immigration
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was one of the most challenging things
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I have ever done in my life
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And I've had a challenging life.
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It started with me, just quite simply wanting
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a business visa because I had already started
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a business in the United States
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I thought it'd be the easiest thing in the world
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especially since I had advised the White House
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I kind of thought, you know, come on guys
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I did some work for you for free
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you can see I am a great believer in the United States
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but oh no, I couldn't even get a simple business visa
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because they looked at me and they said
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well you've already started a business
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so you can't apply for a business visa because it's too late
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now you need to apply for an investor visa, so
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I spend three months putting together
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what's called an E-2, an investor visa
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I invest a $125,000 into the United States company
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and yet, I still could not get this visa
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they rejected me on the basis that we were a startup
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and this E-2 was based on a treaty from
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something ridiculous, like 1870
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So, I have to do a consulate interview
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just to have it signed-off, my lawyer said
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"it's just a tick in the box, you know, you've been approved
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they've taken your application"
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so I go back to London, which was only supposed to be a few days
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and I go to the Embassy, and the guy behind the window
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looks at my application, he looks at me
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and I look young at the best of time
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and he goes, "what are you doing getting an O-1 application?"
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Almost as if he is looking at me like a kid like
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I didn't deserve it
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He actually had to go and print off the criteria
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and then he quizzed me for 20 minutes
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and then he said, "well I don't really have time
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to review this application" so he suspended it.
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And not only did he suspend it
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there was no information about what I needed to bring
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or provide extra, he was just like, "it's suspended."
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So what happened next? Well I can tell you
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what happened next. First of all
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I had to close down two of my U.S. companies
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I had to sack U.S. employees. Alright.
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the cost to the U.S. economy, I would say
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would be in the millions of dollars.
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A whole year went by
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of my ringing the embassy, trying to get in contact
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with the embassy, my lawyer's trying to get in contact
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with the embassy. Nothing.
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You can't write them, you can't talk to them
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you can't get an answer out of them.
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By the time, finally, they rang me up after a year
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I closed down all my businesses in the U.S.
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and it was really a challenge whether I was going
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to go back or not.
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One of the interesting parts that happened to me
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was when, I think it was in 2009,
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after the economic situation turned
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in the U.S. and things went the wrong way
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I think, there was a lot of job loss, and the like
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My visa, my O-1 visa, had actually expired
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at that point in time, and when I applied to renew it,
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we got pushed back from immigration
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that, you know, my duties were not executive in nature
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or something along those lines
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and they weren't going to renew my visa.
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And this is, you know, 4-5 months just after
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we raised an additional $20 million
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to create jobs in the U.S. and employ people
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and take the company to the next level.
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Clearly, a CEO's job is quite executive in nature
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so it wasn't, it was probably part of an internal processing
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error more than anything else.
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but overall I think, from where I stand, I think
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the immigration process, doing it the way we did it
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where we have a company with an office here
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was a lot more simpler than when I started off
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in the beginning, trying to move to the U.S.
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As an entrepreneur, with a startup and an idea
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when I came here, looking for funding and
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speaking with venture capitalists
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they wouldn't fund me, and that was back in 2007, 2006
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the market was pretty hot, I had a great idea
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and I had a great concept, but for them
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it was, when you move operations here,
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when you based here, give us a call.
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We don't want to go through the risk
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of having to sponsor your visas
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and get the paperwork done and stuff for the companies here
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you're going to do that by yourself
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and that was a difficult part.
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I work, I need to plan, because I own my company in Italy
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so I started my business.
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I am not here because I want to be simply lucky
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I am here because I need to expand my business
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so I have to plan, I have to schedule activites
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But when I arrived,
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I had some problems, because the immigration officer
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said that probably, I should have applied for a B-1 for a visa
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but it was a completely different information
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from what they told me in Italy.
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We spent almost one hour and twenty minutes
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in the secondary room, and
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they asked me for everything
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they asked me also, what my product is
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how old was my company, where it was based
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and they also asked me, if I can find some customers here
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where the money will go through
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so I had to explain a lot of things.
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In my point of view, it was just like a person,
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the person in front of me
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can decide about my future here
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there is a sort of gray area, gray zone
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where the laws seems, can be applied in a different way
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depends on the person you are in front of.
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All depends from the guy at the point of entry
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wherever you land, you're landing in Chicago
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or in San Francisco, so even with a visa
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nothing is sure, right? You came here
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after fifteen hours of flight, you have a visa
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you came here at the point of entry the guys can reject you
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the guy can say, no you can't stay here
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or you can stay here for only two weeks,
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he gives you two weeks.
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There is no visa for entrepreneurs or founders, right?
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But those are the people that create new jobs
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as the Kauffman Foundation discovered
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and there is no visa for these people
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that's incredible
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No visa for people who in the last twenty years
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have created 50% of the workforce.
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He can reject the next Mark Zuckerberg
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he can reject the next company with 20,000 employees
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and he doesn't know, he has so much power
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understands nothing about this economy
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these businesses, how can you give
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so much power to a guy like that?
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The current system, entrepreneurship is risky enough,
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but the current system increases the risks substantially
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because, for a startup to work, it obviously want
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and need startup capital, and like I said, a lot of times
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it's really hard to raise capital
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when you are trying to stay in the states, but you can't
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A lot of people, sometimes, if you go back to your own country
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it's much easier to raise that capital from the U.S.
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Say, hey, you know, I have an idea in Taiwan, it's going
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to make a lot of money, why don't you invest here
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That's easier than saying, hey, I want to start
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a company in the U.S., can you invest in me?
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There is no visa for money
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the U.S. investors, they can invest anywhere they want
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to China, to India, to wherever the opportunities are
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and if the U.S is stopping the innovators to come to the U.S.
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then the innovation is happening somewhere else
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and obviously because of that, the money is flowing somewhere else too
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So, by not allowing talents and innovation to be in the U.S.
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the U.S. is allowing all that capital for innovation
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to go to other nations.
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That's just how the world works
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there is always places that people will go
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and if you make it very difficult for smart people
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to realize the cost and benefit
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once that scale tips, you're going to see
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an influx of people outwards, into other areas
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and of course Asia is already dominating
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just because there are a lot of smart people there
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and they realize that staying there and building
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something there is now, much more lucrative and
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much more likely to succeed than if they were to
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move somewhere else to do it.
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What steps do you think could be taken immediately
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to improve the system?
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I think, from personal experience, there are a number
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of ways the U.S. visa system could be improved
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first of all, we need an entrepreneur visa, OK?
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Entrepreneurs create wealth, they pay taxes
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and they make money for the U.S. economy
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and most importantly, we create jobs.
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So there needs to be an entrepreneur visa.
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There are at this moment no visas scattered for entrepreneurs
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all visas available are meant for people who want
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to have a job in the U.S.
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I don't want to have a job here, I want to create jobs in the U.S.
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I think the Startup Visa will be essential for people like me
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Because if you look into the past founders of great companies
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very few have started millionaires, people who can
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come to the U.S easily.
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So, when it comes to people like me, who don't have
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a million dollars in the bank, but have the ability to
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recruit a team and raise money,
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the Startup Visa will be the perfect solution
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to have me stay in this country, create those jobs
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create the innovations at the place where I want to
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and I think that is an almost necessary step
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for the U.S. government to do to keep the U.S. competitive
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and keep in the forefront of innovation that
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has been maintaing for the past decades.
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If the Startup Visa was in place when I started looking
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for funding, I would have certainly taken it
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and raised less money, gotten here quicker
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I would probably added an extra year to the time
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it took me to get to the U.S.
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I would definitely have loved to have had a Startup Visa
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but if we can get that visa in place
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I think it a fantastic concept, I think it's going to attract
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the best and brightest people around the world
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so I'd love to see it happen.
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When contacted for a short interview,
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representatives of the US Citizenship and Immigration Services (USCIS)
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informed us that all interview requests must be made in writing
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After making a formal written request, we received no further response.
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The Customs and Border Protection (CBP) has the authority
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to allow of deny entry to any immigrant at the border,
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regardless of visa status
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They have 200 dedicated press officers
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They also declined to be interviewed.
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The United States does not currently have a visa category
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for founders or entrepreneurs
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Through a patchwork of alternatives, some entrepreneurs
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manage to stay, while others are forced to leave,
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taking their companies and their jobs with them.
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"If your ship doesn't come in, swim to it." — Jonathan Winters
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Quote found in the email signature of our USCIS contact.
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Directed by: Tarik Ansari
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Produced by: Basil Glew-Galloway
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Associate Producer: Derek Dabkoski
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Camera Operators: Chloe Nichols, Kindrid Parker,
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Justin La Fleur, Basil Glew-Galloway
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Audio Engineer: Jake Atlas
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Music by: Guy Maisonneuve
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Motion Graphics by: Jacob van Leeuwen
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Edited by: Kindrid Parker, Basil Glew-Galloway
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Featuring: Tarik Ansari, Carlo Alberto Degli Atti,
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Yu-Kai Chou, Vinny Lingham,
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Ronald Mannak, Augusto Marietti,
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Ben Way, Brian Wong
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Special thanks to: Massimo Sgrelli, Brad Feld,
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Robb Kunz, Elizabeth Ü, Stefania, Francua Flippe,
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Augusto Marietti, Mike Shaver, Carlo Alberto Degli Atti,
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George H., Alex, Mark Pollard, Jeremy Nulik,
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Jason Putorti, Hunter Owens, Christian Owens,
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Ethan Resnick, Ben Reyes, Dan Martell, Gaurav Kishore,
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César Salazar, Nathaniel Whittemore, Richard Tibbetts,
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Alberto Padilla Luengas, Oza Klanjsek, Philipp Berner,
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Andreas M. Brændhaugen, Justin Ip, Vikrant Ramteke,
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Alejandro Corpeño, Adrián Catalán, Kevin Hartz,
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Matthew M. Gonzales, Adam D'Augelli, Mathias J. Holzmann,
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Rouge Sur Blanc, Purvi Rajani, Majid Fard, Adam Wride,
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Emily Nakano Co, Joshua Chen, Damir Zekić, Don Ryan,
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Antonio Evans, Ben Way, Niall Smart, Kirin Kalia,
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Edy Sulistyo, Henry Liu, Courtney Guertin,
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Sebastian Mortelmans, Jacob Brody, Dave Heal, Azymnis,
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Brian Wong, Jonathan Jaeger, Tim Rosenblatt, Craig Fisk,
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clarkf, Uday Ayyagari, Dave Knox, Alan Ho, Abby Fichtner,
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Jennifer Berk, Heather Wetzler, John Prendergast,
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N. Monteiro, Courtney Boyd Myers, Yu-kai Chou, Katherine,
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Diego Gomes, Yoyo Zhou, Ben Goodyear.
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Additional thanks to: Hermione Way, Kickstarter,
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L'Alliance Française, Dave McClure, Shervin Pishevar,
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All other re-tweeters.