H-1B visa uncertainty pushes Indian founders to O-1, EB-1 visas: Explained

Rising H-1B costs and new lottery rules are pushing Indian startup founders to consider O-1, EB-1 and EB-2 NIW immigration pathways for US expansion

Mounting uncertainty around the H-1B visa is pushing many Indian startup founders to rethink how they enter the US market. Recent policy changes, including a new system that favours higher salaries in the H-1B lottery and the prospect of costs touching $100,000 per petition for employers, are making the traditional pathway far more difficult for early-stage companies.

 

As a result, founders planning US expansion are increasingly exploring alternative immigration routes such as the O-1 visa for individuals with extraordinary ability and employment-based green card categories like EB-1 and EB-2 National Interest Waiver (NIW).

   

Frederick Ng, co-founder of Beyond Border, a Bengaluru- and US-based immigration platform that works with startup founders and technology operators, said the firm has seen a sharp rise in interest in these pathways. According to the company’s internal data, enquiries around the O-1 visa have nearly tripled in the early months of the year as founders prepare for the next H-1B cycle, he said in a interview with Business Standard. Edited excerpts:

   

How is H-1B uncertainty affecting startup founders?

 

The cost and structure of the H-1B system are becoming major barriers for startups. It now costs roughly $100,000 per new H-1B petition — essentially for every hire a company wants to bring to the US through this route.

 

Even if a company can afford that amount, the new lottery mechanism favours higher salaries. The higher the compensation offered, the better the chances of selection. That creates a disadvantage for startups, which usually operate with tighter budgets.

 

We speak with many founders every day who approach us because these dynamics are delaying hiring plans and slowing down US expansion strategies.

 

Are founders actively shifting to O-1, EB-1 or EB-2 NIW pathways?

 

Yes, particularly the O-1 visa.

 

Our internal data shows nearly a threefold increase in interest in the O-1 at the start of the year as the new H-1B cycle approaches. Many founders are actively exploring alternatives because they understand how the current H-1B policy environment works.

 

The O-1, EB-1 and EB-2 NIW routes are increasingly being evaluated as more predictable pathways for founders who want to build or scale their companies in the US.

 

Are founders reconsidering relocation because of policy volatility?

 

Not really.

 

We almost exclusively work with clients of Indian origin, most of whom are founders and tech operators. They still want to move to the US, often because their boards or investors expect them to establish a presence there.

 

The reality is that the US offers a level of talent density and business opportunity that startups cannot easily find elsewhere.

 

How are visa delays affecting hiring and expansion timelines?

 

Processing timelines have increased sharply.

 

With the shift from distributed processing centres in California and Texas to centralised Service Center Operations (SCOPS), median processing times have moved from around six months to about 10.5 months over the past two months.

 

Most startups cannot afford to wait nearly a year to confirm a hire or relocate a team member. For founders, this can also mean missing board meetings in the US or losing opportunities to meet potential clients in person.

 

We have also seen cases where founders were refused entry on B-2 visas because they travelled too frequently for business meetings. When that happens, they lose even short-term access to the US market. The operational impact can be significant.

 

Are more startups choosing a “build in India, sell to the US” model instead of relocating?

 

Not in most cases.

 

We work with several startups in Bengaluru that build and sell products from India, but the pattern we usually see is different. Founders often secure an O-1 visa first, relocate to the US, and begin building operations there.

 

Once the founder’s O-1 is approved, additional founding team members may follow. Relocation usually starts as soon as the first visa approval comes through rather than waiting to establish a fully India-based model.

 

What mistakes do founders make when choosing between these visa routes?

 

For H-1B, many founders simply rely on luck.

 

For O-1 and EB-1, the most common mistake is assuming they will not qualify because these visas are often seen as reserved for extraordinary figures such as scientists or globally recognised experts.

 

In practice, founders with strong professional achievements can be very strong candidates. Venture-backed founders, in particular, often have press coverage and documented innovation in their fields.

 

Approval rates for the O-1 have remained above 90 per cent across the last three US administrations, while EB-1 approval rates are closer to 70 per cent. Many founders underestimate their eligibility.

 

Will the US remain the main destination for Indian startup expansion?

 

I expect it will.

 

The US continues to be the core destination for startups and technology companies. The size of the market, access to capital, and concentration of talent remain unmatched for founders who want to build global companies.