Startup H1B Visa: What Startup Founders Need to Know About the September 2025 Changes

What Is The H1B Visa & How Has It Changed?

The H1B visa is a nonimmigrant visa that allows U.S. employers to hire skilled foreign professionals in specialized roles such as engineering, product, or data science. For early-stage startups, it has often been a critical pathway to bring in niche technical talent when local hiring pools fall short.

As of September 21, 2025, a new policy dramatically shifted the landscape. Employers filing new H1B petitions must now pay an additional $100,000 supplemental fee. While current H1B holders and renewals are not directly impacted, the change significantly raises the barrier for new international hires.

For startups without deep budgets, this isn’t just a cost issue - it’s a strategic challenge. The new rules also tie visa issuance and reentry to this payment, creating additional risk for employees traveling abroad.

H1B Visa Effects & Challenges for Startups

Increased Hiring Costs

• A $100k fee per new hire is a non-starter for most early-stage companies with ARR under $10M.

• Competing with big tech giants like Google, Amazon, or Apple, or later-stage startups for global talent just became harder.

  
  

Risk of Delayed Scaling

• Startups in DevTools, Cyber, or AI often need rare engineering or data hires quickly.

• With visa restrictions, those critical hires may be delayed - slowing product roadmaps and U.S. market entry plans.

  
  

Market Inequality

• Larger enterprises will absorb the cost; startups may be forced to rely on smaller networks or less specialized hires.

• This widens the gap between startups with scrappy teams and incumbents with immigration leverage.

  
  

Strategic Uncertainty

• Policies are currently time-limited (12 months), but legal challenges are ongoing.

• Founders face difficult planning questions: Do we commit to U.S. growth now or wait for clarity?

H1B Visa Advice for Early-Stage Founders

1. Prioritize Critical Hires

The $100k H1B fee doesn’t mean slowing down your scaling plans - it means being more strategic. Get clear on which roles are mission-critical and which can wait, and focus on filling the positions you can source locally before looking at visa-dependent hires.

2. Explore Alternatives

• Remote-first models with global teams.

• Other visa categories (O-1 for extraordinary ability, L-1 for transfers, TN for Canadian/Mexican hires).

• Nearshore contractors or agencies as interim solutions.

  
  

3. Lean Into Specialist Recruiters

Most startups at Seed–Series B don’t have in-house HR. Partnering with recruiters who understand both early-stage dynamics and immigration options helps you avoid costly missteps. Want a confidential chat about your options? Contact us.

4. Secure Talent Before Travel

If you already employ H1B talent, avoid unnecessary international travel until reentry rules stabilize.

5. Consult Your Immigration Attorney Immediately

Even if you believe you’re exempt from the new fee, it’s smart to get legal confirmation. Speaking with your immigration attorney won’t hurt - and it will give you and your team peace of mind that you’re fully compliant and protected.

Startup H1B Visa FAQ

Can a startup company sponsor H1B visa?

Yes. Even small startups can sponsor H1B visas if they meet USCIS requirements — proof of ability to pay, legitimate business operations, and a qualifying role. However, the new $100k supplemental fee makes this extremely difficult for early-stage companies.

Does the $100k fee apply to existing H1B holders?

No. Current visa holders, extensions, and renewals are not impacted unless they are filing a brand-new petition. USCIS has confirmed that the $100,000 supplemental fee (required under the September 21, 2025 rule) is a one-time fee applicable to new H-1B petitions filed on or after 12:01 a.m. Eastern on September 21, 2025.

What are the best alternatives to H1B for startups?

Options include O-1 visas for highly skilled individuals, L-1 for intra-company transfers, or building distributed teams while scaling U.S. operations.

How does this impact startups entering the U.S. market?

It raises the barrier to hiring critical technical talent locally. That makes it even more important for founders to be deliberate about their hiring roadmap and to partner with specialists who can help navigate both local and visa-dependent hires.

Will the policy last?

The rule is time-limited (12 months) and may face legal challenges. But founders should plan for it to remain in effect through at least 2026.

H1B Visa Startup Founder takeaways

For early-stage startups, the startup H1B visa shift is less about immigration law and more about strategic growth risk. If you’re planning U.S. market entry or trying to scale niche technical teams, you need a hiring plan that accounts for these new constraints.

Instead of going it alone, partner with experts who understand both early-stage growth and visa dynamics. The question isn’t just “can a startup company sponsor H1B visa” — it’s whether doing so aligns with your growth strategy under today’s realities. Reassess your roadmap, explore alternatives, and don’t let immigration hurdles derail your scaling plans.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. The Search Experience is not a law firm, and we are not immigration attorneys. Immigration policies can change quickly, and individual circumstances vary. Founders and candidates should always consult a qualified immigration attorney before making decisions related to H-1B visas or any other immigration matters. or the latest official updates, please refer to the USCIS H-1B FAQ.