If you can no longer get people to staff your “capital efficient” companies for nothing, you ask for the kind of visas to import slaves. H1B is corporate enslavement.
Every dollar spent on a subprime VC investment dilutes the opportunity to create the prime innovation that can produce prime returns. And for the last 10-years, VCs have waived subprime money around using the “capital efficiency” thesis, which produced negative 4.6% IRR for Limited Partners.
And so you’d expect we learn something from that. Quite the opposite, because many local entrepreneurs refused to be taken for an underperforming ride, we now attract foreigners who are willing to start a company under subprime terms to the US, starting with a $100K investment.
Welcome to the new subprime startup visa, or depending on your role: how Venture descends further down to its self-induced subprime maelstrom.