Indian immigrants have created most of the billion-dollar startups in the United States

Immigrants started more than half of unicorns; four Indians among the founders of multi-billion dollar companies

According to a new report, immigrants from 57 countries launched more than half (319 of 582, or 55%) of US startups valued at $1 billion or more, with India topping the list with 66 companies.

Additionally, nearly two-thirds (64%) of America’s billion-dollar companies (unicorns) were founded or co-founded by immigrants or children of immigrants, the National Foundation for American Policy (NFAP) said in a briefing note.

Read: 44% of Fortune 500 companies founded by immigrants or their children (June 10, 2022)

Nearly 80% of U.S. unicorn companies have an immigrant founder or an immigrant in a key leadership position, such as CEO or vice president of engineering.

Immigrants from Israel founded the second most billionaire companies with 54, followed by the UK (27), Canada (22), China (21), France (18), Germany ( 15), Russia (11), says the report.

At least 10 immigrants, including four Indians – Mohit Aron (Nutanix and Cohesity), Ashutosh Garg (Bloomreach and, Ajeet Singh (Nutanix) and Jyoti Bansal (AppDynamics and Harness) – have founded several billion-dollar companies. dollars.

Many immigrant entrepreneurs came to America as children with their families. Hari Ravichandran immigrated with his family from India at age 14.

At 16, he enrolled in classes at Mississippi State and earned degrees at Stanford and Wharton. In 2017, he founded Aura, which has 660 employees and provides digital security for online identity and accounts.

The research shows the importance of immigrants to cutting-edge businesses and the U.S. economy at a time when U.S. immigration policies have pushed talent to other countries, NFAP said.

Several companies had several international students as founders. There are 174 international students who have become founders or co-founders of billion-dollar American companies.

But the long wait for employment-based green cards due to low quotas and the per-country limit prevents many people in H-1B status from having the employment status that would allow them to start a business, said noted the NFAP.

Read: Highly-skilled immigration bolsters the U.S. economy: TechNet (December 6, 2021)

The Congressional Research Service estimates that the backlog of employment-based green cards for Indians could top 2 million by 2030.

The low annual limit on temporary H-1B visas can also make it difficult for startups to hire new staff at their fast-growing companies or for international students to stay in the United States, according to the report.

USCIS said it received 483,927 H-1B records for fiscal year 2023 and rejected nearly 400,000, or 82%, of records as exceeding the annual limit of 85,000 H-1B requests.

Immigrants have fueled the rise of billion-dollar startups in the United States, according to research: Without immigrants today, there would likely be less than half the number of billion-dollar startups in the United States. United States, said NFAP.

As of October 1, 2018, there were 91 unicorn businesses in the United States, and 50 of them (or 55%) had an immigrant founder, compared to 582 unicorn businesses in the United States and 319 (or 55%) with an immigrant founder. May 2022.

This represents an increase of more than 500% in both unicorn societies and immigrant-founded unicorn societies between 2018 and 2022.

Read: Indian techs explore opportunities beyond America to build their startups (January 11, 2018)

The research updates and confirms findings from NFAP studies in 2016 and 2018 and identifies more than 300 US$1 billion companies with immigrant founders.

The analysis shows that 58% of billion-dollar companies founded by immigrants had only one or more immigrant founders.

; Overall, 86% of billion-dollar businesses founded by immigrants had only one immigrant founder or immigrant founders or a majority of immigrant founders or an even number of immigrant and native-born founders; only 14% had a majority of founders born in the country.

The research involved interviewing and gathering information on more than 580 US startups valued at over $1 billion (as of May 2022) that have not yet listed on a US stock exchange and are being tracked by CB Insights.

The companies, called “unicorns,” are all privately held, valued at $1 billion or more, and have received venture capital funding. The collective value of the more than 300 American businesses founded by immigrants is $1.2 trillion.

The value of US billion-dollar companies founded by immigrants would reach $1.5 trillion if one included billion-dollar companies with immigrant founders that went public (or were acquired ) since 2016, such as Moderna and Zoom Video.

The collective value of the 50 billion-dollar companies founded by immigrants in 2018 was $248 billion. Research finds that billion-dollar US private start-ups with immigrant founders created an average of 859 jobs per firm.

Read: Most billion-dollar startups in the US were founded by immigrants (July 26, 2022)

Main findings:

– As many as 319 of 582, or 55%, US startups valued at $1 billion or more have at least one immigrant founder. This illustrates the continued importance and contributions of immigrants to the US economy.

– In addition to companies with immigrant founders, at least 51 of the 582 US$1 billion start-ups have founders born in the United States to immigrant parents.

– Nearly two-thirds (64%) of US billionaire companies (unicorns) were founded or co-founded by immigrants or children of immigrants.

– Nearly 80% of US billion-dollar private companies have an immigrant founder or an immigrant in a key leadership position. CEO, CTO (Chief Technology Officer), and Vice President of Engineering are the most common positions held by immigrants in billionaire companies.

– There are 143 US billion-dollar companies with a founder who attended a US university as an international student. A quarter (143 of 582, or 25%) of billion-dollar start-ups in the United States have a founder who first came to America as an international student. Billion-dollar US startups with a founding international student have created an average of 860 jobs.

Source link

Comments are closed.