This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Roadblocks to Success as a Startup

2. Immigrants can't start companies if the U.S. kicks them out of the country

The nation's top university labs are full of non-U.S. citizens whose research could yield myriad technology startups. In fact, immigrants founded 7,000 technology companies between 1995 and 2006, according to the Kauffman Foundation.

During that time, about 25% of tech companies in the U.S. had founders from other countries. The problem is that while foreigners have good luck acquiring student visas, the visas run out once they stop being students and start starting companies. The U.S. offers a visa for foreign investors, the EB-5, which requires a business investment of at least $1 million and the creation of at least 10 jobs. But the EB-5 is little solace to entrepreneurs whose businesses are too new to be profitable, but who want to stay in the country to make that first million bucks.

"If we had our way, for every foreign-exchange student that graduated with an advanced degree in science, education or math, we'd staple a Green Card to their diplomas," Ruhe says.

3. Angel investors are getting cliquey

In headier times, angel investors were wealthy individuals who provided initial capital for all sorts of startups. These days, a lot of angels are pooling their resources into group funds, which decreases the variety of investments.

"They used to be risk takers taking a chance on something that was early-stage and promising," Ruhe says. "What they've done is started syndicating and acting more like mini-me's of VCs."

-- Reported by Carmen Nobel in Boston.

Follow on Twitter and become a fan on Facebook.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs