Tag Archives: washington dc

Startup Iowa’s Tej Dhawan on the recent STEM Jobs Act

Cross-posting from Tej Dhawan’s blog. Tej is a cofounder of Startup City Des Moines and part of the founding team of Startup Iowa:

The STEM (Science, Technology, Engineering, and Math) Jobs act, H.R. 6429 was introduced in the House by Rep. Lamar Smith on September 28, 2012 and passed on 11/30 in the house 245 to 139.  Iowa Representatives Braley and Loebsack voted No while King, Latham and Boswell voted in favor.  The bill was referred to the Senate and was read on 12/3 and 12/4/2012.  I spoke with Jens Krogstad of the Des Moines Register on this topic recently, and read the article and accompanying citizen commentary today.  I am disappointed in the direction the article took, as it focused on an individual’s plight instead of the larger problem surrounding the STEM worker shortage.

As the Governor and Lt. Governor of Iowa have outlined via their multi-year, statewide STEM initiative, there is a need for this state to grow the population able to fill open STEM jobs.  A University of Iowa survey in 2012 documented that 61% of Iowans agree that there aren’t enough skilled workers to fill STEM jobs in Iowa (slide 14 of the UNI Study). The Iowa Workforce development projects the need for STEM qualified workforce to grow from 57,830 in 2008 to 67,330 jobs by 2018, especially in the priority economic sectors of bio-science,  information technology, and advanced manufacturing.  These industries are prominently represented by employers large and small – names like DuPont/Pioneer, Monsanto, Rockwell Collins, Vermeer, Pella, and others in all corners of the state.

Our pipeline of homegrown talent, however, is leaking.  Our 8th graders, at the top in 1992 nationally, have fallen to 25th in Math and 13th in Science.  Only 51% of Iowa ACT test takers in 2010 were college math-ready, and only 11% of them were actually interested in a STEM major.   To top off the data, 93% of Iowa’s population growth comes from Latino/Asian/African-american populations who are half as likely to pursue a career in STEM fields than their white counterparts.

So couple the increasing need for workers in our STEM industries (from ~58000 to ~67000) with a decreasing population of potential homegrown STEM workers (STEM-interested high school graduates now at about 4000) , and we have a deficit.  Since it takes at least 22 years to take a newborn through college, and our STEM agenda is working hard to grow the number from K-16 within the 22 year constraint), our deficit will naturally grow over time until we fix our production problem.  The choice is to export the jobs or import the people.

Importing individuals may sound petty and trite, but economically it is a choice.  Without the oceans, mountains, temperate climate, and activities, we know that our government officials’ desire to import new Iowa citizens from the coasts will be minimally fruitful.  So, why not figure out a way to keep talented, STEM-ready, young people here?  BTW, this problem isn’t localized to Iowa – Brad Feld has shared his frustrations via his postsVivek Wadhwa through his book, the Immigrant Exodus, and numerous others, our industry titans are hurting for qualified individuals and unable to find them.

That’s what the STEM Jobs Act is designed to do.  The democrat representatives and President I voted for killed that movement to protect a silly diversity lottery.  A lottery that brings people with no eye for what they bring to the country.  More partisan politics that bears little benefit for the country’s citizens.  There is a chance I might get to discuss this with the President himself in a few weeks.  Hopefully I can deliver the message more concisely for political consumption by then.

Please hit your employees in DC to tell them we need the STEM Jobs act.  Here are the links –

Bruce – http://braley.house.gov/contact
Dave – https://loebsack.house.gov/contactform/default.aspx
Barack –  http://www.whitehouse.gov/contact/submit-questions-and-comments

–Tej

Immigration Issues in DC

Tej Dhawan of Startup City Des Moines and a cofounder of Startup Iowa passed along the following report from his recent visit to DC as part of the Greater Des Moines Partnership delegation:

There is an eerie consensus across the aisle in DC that our current immigration system is broken, in need of reform, and change is necessary for the long term economic growth.  There is little consensus on how such reform will be achieved, who will lead it, and what will eventually motivate Congress into action.

Human Capital, impacted by immigration, was one of the core topics of the Des Moines Partnership’s DC trip this spring and I am privileged in being able to join business and government leaders from our region on this trip.  I am certainly privileged to work with Lori Chesser from the Davis Brown Law firm and invited to a panel on immigration.

The panel, consisting of Rosemary Gutierrez and David Johns from Sen Harkin’s office, Kathy Neubel Kovarik from Sen Grassley’s office, Aaron Brickman from Department of Commerce, Ben Johnson from American Immigration Council, and moderated by Lori Chesser was attended by various members of the Des Moines community and focused significantly on answering questions from the audience and thus remaining very interactive.

There are three forms of legal immigration today – 1) marriage to a US citizen, 2) sponsorship by an employer, or 3) sponsorship by an American citizen family member.  Being involved in all three forms, I felt comfortable contributing my experience and need for policy changes and bills currently circulating in DC.  I am married to a natural born US citizen from Iowa,  have sponsored, on my previous company’s behalf, several H1b candidates from India, Nepal, Indonesia and Vietnam, many of who are taxpaying residents, green card holders, naturalized citizens and contributors to Iowa and the US economy.  I am also sponsoring my sister, a Malaysian citizen to the US.

What is broken and in need of fix are the second and third categories.  Whether it is the HR3012 bill that allows green cards to be issued from the available pool rather than be artificially limited, the proposed StartupVisa that allows for foreign entrepreneurs to start their businesses in the US when sponsored by an accredited US investor, the DREAM act  or others, several solutions exist and are available to Congress.

What I heard from many during this recent visit to DC was that many in Congress would rather wait for a comprehensive immigration reform.  Both Senators’ offices comments were consistent that they prefer comprehensive reform such that visas should not take jobs from US workers, college seats from native US students, be considered comprehensively and not piecemeal etc.

Though a desire for comprehensive reform is respectable, Congress hasn’t shown an ability to work together toward real reform in my voting life in the US.  Furthermore, careers in STEM fields continue to be underfilled by software developers, doctors and  engineers.  Companies large and small, represented in the audience for our forum, continue needing to offshore their work in absence of sufficient resources here.

As Jim Clifton so clearly pointed out in Coming Jobs War, there is a marked change underway worldwide.  Qualified technology workers are finding an ability to find careers overseas and no longer want to stand in line as second-class citizens in the US.  Recent news reports are listed net-immigration from Mexico even to be zero, resulting in shifts even in the agricultural economies of Texas, Florida and California.    People are finding opportunities elsewhere in the world, and if we are unable or unwilling to bring job-seekers here, our companies will be sending the jobs overseas.

My message to the congressional representatives and other members on the panel was clear –

  1. We can’t wait for comprehensive reform.  To stem the outflow of jobs, we must tweak our immigration policy through bills like the HR3012 that received significant support in the house (373-15) but remain stuck in the Senate.
  2. Small and new businesses are the job creators.  Startups, a subset of the new businesses, are the high growth leaders in wealth creation that leads to more job creators.  The StartupVisa, as introduced by Kerry and Luger in 2011 needs to be addressed in Congress.
  3. Our colleges and universities are global leaders in education and attract students from around the world.  As we graduate them and give them options to intern/train via OPT/CPT statutes, we should allow them the ability to apply for a green card and legal employment at the end of the practical training rather than subject them to 3-10 years of servitude via the H1b program.  These students represent a large community of individuals who are establishing strong ties to America – we need to grow through them.
  4. Our schools and colleges are not graduating needed numbers of STEM fields.  While we build that population up through K-12 systems over the next 20-30 years, we should make our universities and colleges attractive globally through a foreign student program as attractive as the one I used when entering this US in the 1980s.
  5. The DREAM Act proposes to give children of illegal immigrants a legal way to stay in the country.  Whether it is the original Dream act or the modified version by Senator Marco Rubio, the purpose is the same – keep and grow with those who love and cherish America.

We do not have time for comprehensive reform, or does Congress show any willingness to bridge the divide, specially in this election year and beyond.    If you have any doubts about our place in the world, pickup a copy of Jim Clifton’s Coming Jobs War or Thomas Friedman’s many tomes, including That Used to be Us.

Cross-posted: http://www.startupia.org/immigration-issues-revisited-in-dc/

To execute on the idea of Startup Visa in DC, should the startup community support the DREAM Act?

In January 2012, President Obama said in his State of the Union:

But if election-year politics keeps Congress from acting on a comprehensive [immigration] plan, let’s at least agree to stop expelling responsible young people who want to staff our labs, start new businesses, defend this country.  Send me a law that gives them the chance to earn their citizenship.  I will sign it right away.

The translation of this is that the President supports a ‘minimum viable policy package’ containing STEM Green Cards (“staff our labs”), Startup Visa (“start new businesses”), and the DREAM Act (“defend this country”).

The impact of this proposal would be the following:

  • Graduate with an advanced technical degree from a US university: get a green card ‘stapled‘ to your diploma
  • Create startup jobs, build a great company: get a visa, fast track to a green card
  • Enlist in the military, serve honorably: get a visa, fast track to a green card, including undocumented immigrants

Should the startup community back this proposal? We’ve clearly supported STEM and Startup Visa in the past. The word from Washington is that those individual bills are too narrow to be viable—features, not products—the market of politicians won’t support them as is, thus the minimum viable policy package.

We, the community, need to decide if there is enough overlap with military service for us to support. The Bloomberg Administration of NYC and their Partnership for a New American Economy calls for chasing after the ‘best, brightest, and hardest working’ immigrants.

I think they and we should both support this package as a way to promote entrepreneurship and continue to make sure America remains the leader in innovation and monetization of great ideas and products.

White House ask: Tell us your startup story

The White House has an ask out to the startup community: how is your startup doing? What are some of the struggles you’ve faced and overcome?

For new founders in the past two years, tell the White House what being a new entrant to the startup world has been like. What networks have helped you? What have you most struggled with learning and adapting to?

For founders struggling with visa issues, why not take two minutes to share your story, explaining the need for Startup Visa?

“We would like to hear your story about how your business has done over these last 25 months. Please take a few minutes and share it here. These stories are critical to our policy work — so thank you.

As a reminder, yesterday, the White House signed the JOBS Act legislation that we supported and pushed through with over 5000 signatures on AngelList

“Yesterday, the President signed the Jumpstart Our Business Startups (JOBS) Act, a bipartisan bill that enacts many of the President’s proposals to encourage startups and support our nation’s small businesses. The JOBS Act will allow “crowdfunding” so startups and small businesses can raise up to $1 million annually from many small-dollar investors through web-based platforms, expand “mini public offerings”and create an “IPO on-ramp,” making it easier for young, high growth companies to go public. Read all about the JOBS Act here.”

Next up: Immigration, Startup Visa

Silicon Valley Entrepreneurs & VCs Travel to DC to Promote Startup Visa Job Creation Bill

[For Immediate Release]

Grass-roots team behind StartupVisa.com to meet, brief representatives of White House, Senators, State & Commerce Departments, DHS, SBA

San Francisco, CA, March 2, 2010 — A group of Silicon Valley entrepreneurs and venture capitalists will travel to Washington DC this week to promote the Startup Visa Act of 2010, legislation to spur job creation by enabling startup founders to bring new companies to the US, if they can demonstrate funding from US-based investors. The group plans to meet with a variety of federal representatives to brief them on the bill, including the White House, State Department, Commerce Department, DHS, SBA, and members of congress.

“Job creation is a national priority,” said Dave McClure, organizer of the trip and a venture capitalist and former software entrepreneur. “With the Startup Visa Act, we can create thousands of new jobs immediately, and tens of thousands more as these new startups grow into the next Googles, Yahoos, and eBays of their generation. It’s a huge win-win, and we’re traveling to DC to encourage the quick passage of this much-needed reform.”

The Startup Visa Act of 2010, introduced last week by Senator John Kerry (D-MA) and Richard Lugar (R-IN), would modify the existing EB-5 visa to enable job-creating entrepreneurs to immigrate to the United States. The bill requires each entrepreneur to have a sponsoring US venture capital or angel investor who will invest at least $100,000 in their startup, and total funds raised must be at least $250,000 per company. The legislation is supported by more than 150 venture capitalists and investors who signed a letter urging its passage. While in DC, the group will be meeting with members of Congress, The White House, Commerce Department, State Department and Small Business Administration, and bringing thousands of messages from voters around the country who support the bill.

The grass-roots effort to create the bill began last year, prompted by a blog post by Paul Graham of venture capital firm Y Combinator. Brad Feld, a venture capitalist with Foundry Group based in Colorado, took the next step and began promoting the idea on his website and blog. McClure and Silicon Valley entrepreneurs Eric Ries and Shervin Pishevar then joined the effort by creating the StartupVisa.com website after a previous trip to DC by Silicon Valley geeks in September, and producing a video featuring Ries and Canadian entrepreneur Eric Diep, who had been unable to get a visa to start his company in the US. Feld worked together with congressman Jared Polis (D-CO) to draft legislation introduced in the House last fall, and was later joined by Kerry and Lugar in introducing similar legislation in the Senate last week.

As McClure and others joined in, the Startup Visa movement became an example of how technology innovation can inspire change, and quickly gathered thousands of supporters in just a few weeks. The group has relied solely on the use of social media tools such as Twitter, Facebook, YouTube, and blogs to promote its ideas, and have generated over 2,000 letters in support from voters across the country. “There are no lobbyists, no campaign contributions, no PR agencies,” McClure said. “This is a 100% grass-roots movement of citizens who want to encourage job creation and innovation in the United States.”

“America and the American Dream has attracted the world’s immigrants and their dreams for centuries, ” said Shervin Pishevar. “Our country has been reinvigorated and reinvented by a stream of humanity from all parts of our world. Increasingly, it has become harder for the best and the brightest minds to come to America and write the next chapter of the America Story. The StartUp Visa Act is about winning the race for the very best of the world’s brains and startups who will in turn create jobs and opportunities for all Americans.”

Support Job Creation in the US by  Supporting StartupVisa.com!

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[PR Contact Dave McClure – 650-743-4738 – dave.mcclure@gmail.com]

A Tale of Two Erics

Here is a short video about two entrepreneurs named Eric:

(thanks to Eric Ries & Eric Diep)