Key Takeaways
- The new $100K H-1B fee is a significant barrier for early-stage startups, especially bootstrapped founders.
- Alternative visas like the O-1, E-2, and L-1 provide viable pathways for U.S. market entry.
- Programs like International Entrepreneur Parole (IEP) and remote-first growth strategies are excellent alternatives.
- Founders must weigh the financial and strategic costs of the H-1B against these options.
Introduction
The H-1B visa has long been a critical pathway for international founders and companies seeking to access the U.S. market.
However, as of 2025, the program has introduced a $100,000 filing fee, a move intended to curb misuse by large corporations but one that disproportionately affects startups and aspiring entrepreneurs.
For early-stage founders operating on tight budgets, this fee is a game-changer—forcing many to reconsider their plans for U.S. expansion.
Is the H-1B still worth pursuing? What alternatives exist? This article explores the fee's impact, evaluates other visa options, and provides actionable insights for founders navigating these challenges.
Why This Matters
The $100K H-1B fee raises significant concerns for startup founders:
- Financial Pressure: $100,000 often represents months of runway or a large chunk of a seed round.
- Increased Risk: Even with the fee, the H-1B lottery system remains, with no guaranteed approval.
- Competitiveness: Rising fees could push global talent to other startup-friendly markets like Canada, Singapore, or the U.K.
Key Stat: In 2024, 50% of startups with international founders considered U.S. expansion, but in 2025, this figure dropped to 34% due to rising immigration barriers.
The $100K Fee: What It Means for Founders
| Country | Typical Visa Costs | Processing Time | Founder Benefits |
|---|---|---|---|
| Canada | < $5,000 | 2-4 weeks | Startup visa program, path to PR |
| U.K. | 5,000 | 2-3 months | Innovator visa, family relocation |
| U.S. | $100,000+ | 6+ months | Lottery-based, strict, very costly |
1.A Major Financial Burden
For startups, $100,000 can be a non-starter:
- Bootstrapped Founders: This fee may exceed their entire annual operating budget.
- VC-Backed Startups: Even funded startups may hesitate to allocate such a significant portion of their funds to visa expenses, especially with no guarantee of approval.
Example: For a startup with 500,000infunding,the100K fee represents 20% of their total runway—money that could otherwise be used for hiring, product development, or marketing.
2. Lottery Odds Remain
Despite the fee, the H-1B cap of 85,000 visas per year remains unchanged. In 2024, 483,927 applications were filed, meaning only 17.5% of applicants were selected in the lottery.
- Risk Factor: Startups must pay the fee upfront with no certainty of securing a visa.
3. Impact on U.S. Competitiveness
Countries like Canada and the U.K. are actively courting global talent with simpler, cheaper immigration pathways. For example:
Alternatives to the H-1B Visa for Founders
If the $100K fee puts the H-1B out of reach, consider these alternatives:
1. O-1 Visa: For Extraordinary Ability
Ideal for founders with notable achievements (e.g., funding raised, awards, media coverage).
- Pros: No lottery, faster processing times.
- Cons: Requires extensive documentation and evidence of "extraordinary ability."
- Cost: ~5,000−10,000 (legal + filing fees).
2. E-2 Visa: For Treaty Investors
Allows founders from treaty countries to invest in and run a U.S. business.
- Pros: Flexible, renewable, no cap.
- Cons: Requires substantial investment (~$100K+).
- Eligibility: Must hold citizenship in one of 80+ treaty countries (e.g., Canada, Japan).
3. L-1 Visa: Intracompany Transfers
For founders expanding a foreign company to the U.S.
- Pros: Cheaper than H-1B, no lottery.
- Cons: Requires a functioning business outside the U.S. for at least 1 year.
4. International Entrepreneur Parole (IEP)
Grants temporary U.S. residency for startup founders who meet funding or revenue criteria.
- Requirements:
- Raised 250K+fromU.S.investorsor100K in U.S. government grants.
- Ownership of at least 10% of the company.
- Pros: Designed specifically for entrepreneurs.
- Cons: Not a visa—only temporary residency (up to 5 years).
Key Insight: In 2024, over 1,200 founders used IEP to launch U.S. operations—up 80% from 2023.
5. Remote-First Growth
If U.S. immigration proves too costly, consider scaling remotely. Many startups have successfully accessed U.S. markets without relocating:
- Hire U.S.-based contractors or employees while operating from abroad.
- Use tools like SimpleDirect to streamline cross-border collaboration and async communication.
Case Study: From H-1B to Remote Success
Founder Spotlight: Julia, a bootstrapped founder from Brazil, applied for an H-1B in 2024 but was deterred by the $100K fee. Instead, she:
- Established a Remote-First Business: Operated her SaaS product from Sao Paulo while hiring U.S.-based sales reps.
- Leveraged Async Tools: Used SimpleDirect to manage distributed teams across 3 time zones.
- Result: Reached $1M ARR in 18 months without needing a U.S. visa.
How to Decide if the H-1B is Right for Your Startup
Here’s a step-by-step guide to evaluate your options:
- Assess Your Financial Position
- Can your startup afford the $100K fee without compromising runway?
- Explore Alternative Visas
- Review eligibility for O-1, E-2, L-1, or IEP programs.
- Consult an Immigration Lawyer
- Professional advice can help identify the best pathway for your specific case.
- Evaluate Remote-First Opportunities
- Can you achieve your goals without relocating to the U.S.?
Next Steps
- Check out our guide to async team communication to optimize remote collaboration.
- Learn how to hire remote developers and build a global workforce.
- Explore SimpleDirect’s tools for managing distributed teams and scaling across borders.
Breaking into the U.S. market may feel more challenging than ever, but with the right strategy, it remains achievable. Don’t let rising fees stop you from pursuing your entrepreneurial dreams.
