Mint Explainer: What US' entrepreneur rule means for Indian startup founders

livemint.com:

Mint dives into the updated details to understand what this means for startup founders in India. The rule mandates entrepreneurs to be either living abroad or already within the US. Spouses of these entrepreneurs could also apply for employment authorization after being paroled.

However, it does not apply to children. Startup entities must have been formed in the US in the past five years and should be able to demonstrate potential for rapid growth and employment opportunities by showcasing at least $264,147 in investments from qualifying investors. They are required to have at least $105,659 in qualified government awards or grants or alternative evidence.

Up to three entrepreneurs per startup can be eligible for parole provided they own at least 10% of the company at the time of the initial application under IER. These founders must have an active role in the startup’s operations, as dictated by the US Citizenship and Immigration Services’ official website. Indian founders who are looking to set up businesses in the US may benefit from access to robust funding opportunities.

The country, which is home to the largest startup ecosystem, thrives on a well-developed venture capital system that serves as the industry's backbone. While the rule is largely sector-agnostic, segments such as technology, software, fintech and e-commerce may see more traction based on the ticket size involved, said Rahul Charkha, partner at Economic Laws Practice. Indian startup founders will also have greater access to a more diverse consumer base, which will be crucial to capturing higher revenues.