The National Venture Capital Association on Friday filed a motion in U.S. District Court in Washington to compel the Department of Homeland Security to implement the International Entrepreneur Rule, pending a final judgment in a case it filed earlier in September, according to NVCA's motion for preliminary injunction.
The Washington-based trade organization, along with Indian entrepreneurs Atma Krishna and Anand Krishna, sued the Department of Homeland Security on Sept. 19 for delaying implementation of a rule that would have allowed foreign-born entrepreneurs to stay in the United States for 2 1/2 years with possibly another 2 1/2-year extension.
The motion states that suspending the rule is harming Messrs. Krishna because it is preventing them from growing their business in the U.S. or attracting investors. The motion also alleges that the NVCA is being harmed by the rule's suspension because it makes it more difficult for venture capital firms to assist foreign entrepreneurs in founding businesses in the U.S. and to otherwise invest in companies founded by foreign entrepreneurs.
NVCA stated in a news release that government policy hindering the ability of foreign entrepreneurs to travel to and work in the U.S. is causing the U.S. to lose its share of global venture capital investment, down to 54% in 2016 from 90% 20 years ago.