Immigrants have founded more than half (55%) of America’s startup companies valued at $1 billion or more, according to a new study from the National Foundation for American Policy (NFAP), a nonpartisan research organisation.
In fact, nearly two-thirds (64%) of US billion-dollar companies (unicorns) are founded/co-founded by immigrants or children of immigrants. Moreover, almost 80% of America’s unicorn companies (privately-held) have an immigrant founder or an immigrant in a key leadership role. For example, CEO or Vice President of engineering.
According to the research, immigrants have fuelled the rise in US billion-dollar startups. Without immigrants today there likely would be fewer than half as many billion-dollar startup companies in the United States. As of 1 October 2018, there were 91 unicorn companies in the US, and 50 of them (or 55%) had an immigrant founder compared to 582 unicorn companies in the US and 319 (or 55%) with an immigrant founder as of May 2022. That represents more than a 500% increase in both unicorn companies and immigrant-founded unicorn companies between 2018 and 2022.
THE AMERICAN DREAM
“The research shows the importance of immigrants in cutting-edge companies and the US economy at a time when US immigration policies have pushed talent to other countries for talent,” noted Stuart Anderson, the author of the study and NFAP’s Executive Director. “The story of immigrant entrepreneurs and billion-dollar companies is not only about impressive numbers, but about immigrants coming to this country, working hard and achieving the American Dream.”
The research involved interviews and gathering information on over 580 US startups valued at over $1 billion (as of May 2022) that have yet to become publicly traded on the US stock market. Tracked by CB Insights, these “unicorn” firms are privately held, valued at $1 billion plus and received venture capital financing.
IMMIGRANT FOUNDERS
The collective value of the over 300 immigrant-founded US companies is $1.2 trillion. That’s more than the value of all the companies listed on the main stock markets of many countries, including Argentina, Colombia and Mexico. The research revealed that privately held US billion-dollar startups with immigrant founders have created an average of 859 jobs per company.
At least 10 immigrants have founded multiple billion-dollar companies, including Al Goldstein (born in Uzbekistan, Avant and Amount), Noubar Afeyan (Lebanon, Moderna and Indigo Ag) and Elon Musk (South Africa, SpaceX, OpenAI and The Boring Company). Rihanna, an immigrant from Barbados, founded Savage X Fenty, valued at $1 billion.
One-quarter (25%) of billion-dollar US startups have a founder who first came to America as an international student. Check out the report, entitled Immigrant Entrepreneurs and US Billion-Dollar, here.
Global icon Jennifer Lopez and microfinance company Grameen America have joined forces to empower 600,000 Latina businesswomen. Click here to read more.
Sign up for our newsletter
