32 minutes | Oct 20th 2020

040: Due Diligence and Founder Immigration for VCs

In this episode of Immigration Law for Tech Startups, I discuss the immigration-related due diligence process for startups. It’s very important for international founders, international tech talent, and investors to know about devising immigration strategies for founders and top talent and ongoing compliance with immigration laws.

During the due diligence process, potential investors investigate the company they’re looking to invest in or acquire, documenting all the current and prospective risks, such as business operations, finances, intellectual property, sales, and potential litigation. If they don’t already, all angel investors, VCs, founders and key talent need to consider the immigration situation of everyone at the startup as part of due diligence.

 

Startups should make sure their employees have the legal ability to live and work in the location they want the work to be done, whether it’s in the United States or elsewhere. In the U.S., a startup potentially faces egregious fines and penalties for employees who are not legally allowed to work. Plus, those individuals risk being deported or spending several months or even years in a deportation trial for violating immigration laws, away from focusing on the work of growing the startup.

 

Please share this episode with any investors or startup founders who can benefit from it. Reach out to us if we can help you determine your immigration options whether you’re in the U.S. or abroad.

 

In this episode, you’ll hear about:
  • The three phases of due diligence
  • Devising immigration strategies for international founders and top talent to ensure ongoing compliance with immigration laws—and make sure these individuals can remain in the U.S.
  • The immigration-related questions investors should ask during due diligence
  • What investors should know about the potential impact of their investment on the immigration status of an international founder or key talent
  • The practical and financial implications for certain visas and green cards
  • The benefits of establishing a company immigration policy
  • I-9 compliance and inspections

 

Don’t miss my upcoming conversations with top Silicon Valley venture capitalists, startup founders, professors, futurists, and thought leaders on Immigration Law for Tech Startups. Subscribe to this podcast on Apple Podcasts, Google Podcasts, Spotify, Stitcher, or whatever your favorite platform is. We welcome your rating and review of this podcast. Thank you!

 

Resources:

Immigration Law for Tech Startups:

 

Alcorn Immigration Law’s page on:

 

Register for Alcorn’s Extraordinary Ability Bootcamp to learn the best practices for securing the O-1A visa, EB-1A green card, or the EB-2 NIW (National Interest Waiver) green card—the top options for startup founders. Use promotion code ILTS for 20% off the enrollment fee.

 

Get Alcorn’s Immigration Law for Tech Startups eBook

 

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