European tech companies are making moves to poach global talent previously considering relocating to the US after president Donald Trump announced sweeping changes to the costs of the H-1B visa used by foreign workers at startups and Big Tech.
On Friday, Trump’s signing of a proclamation introducing a $100k one-time fee for the H-1B visa, which previously cost around $1,500, sent tech companies scrambling to make contingency plans. Prior to the move, approximately 85k visas were awarded in the US annually, primarily to Big Tech companies.
Europe is looking to capitalise on the policy shift. The UK government is already exploring removing barriers to visas for top international talent and European founders are trying to charm tech workers eyeing a move to the US.
“Thousands of top tech workers are now completely in limbo and actively considering moving to the UK,” Barney Hussey-Yeo, the founder of unicorn fintech Cleo, told employees on a Slack message seen by Sifted.
“Let’s make sure we’re the default company they think of. The talent team — let’s go exceptionally hard on this. Post every day and make a big deal out of it,” he wrote.
Meanwhile, voices in the US are concerned about the impact the policy shift will have on the country’s competitiveness.
Garry Tan, president and CEO of Y Combinator, wrote on LinkedIn that the $100k fee is negligible for Big Techs, but are huge sums for startups — and that the policy change will cause talent to flee to overseas tech hubs. “In the middle of an AI arms race, we’re telling builders to build elsewhere. We need American Little Tech to win — not $100k toll booths,” he said.
Startups move to poach talent
The announcement of the cost increase for H-1B visas sent shockwaves and confusion through US tech on Friday, with many companies recalling overseas workers to the country and pausing international travel for visa holders.
While the US press secretary later confirmed the new ruling applies to new applicants, rather than existing visa holders, it left uncertainty hanging over the plans of tens of thousands of potential tech workers. More than 70% of H-1B visas went to Indian nationals in recent years, with 12% from China, the second largest source.
Over the past 48 hours European founders have taken to social media calling for disaffected global workers previously mulling a move to the US to apply for roles on this side of the Atlantic.
“Trump has handed the UK an unprecedented opportunity,” says Hussey-Yeo, who encouraged affected talent to consider roles at his startup in a LinkedIn post on Saturday.
“Since the H-1B turmoil this weekend, I’ve had over 1,000 direct messages from highly skilled professionals considering leaving the US, computer science graduates from the world’s top universities now working at elite tech companies,” he tells Sifted. “The calibre is exceptional.”
Other European startups also report an uptick in applicants for vacant jobs.
“We have seen a big surge in applicants at the top of our funnel who were in the process for US companies, who are now expanding their search more widely,” says Ross McNairn, founder and CEO at AI legaltech Wordsmith.
On Monday, lobby group Startup Coalition published an open letter to the UK government, urging it to expand the £54m global talent fund and speed up processing for H-1B visa holders.
The UK government is also exploring ways to capitalise on the isolationist move from the US. Prime Minister Keir Starmer is considering proposals to abolish some visa fees for top international talent, the Financial Times reported on Monday.
“This is a generational opportunity if we move fast,” says Bella Rhodes, talent policy lead Startup Coalition.
“The H-1B system helped build Silicon Valley, it brought together the world's best talent in one place and created something extraordinary. Now we have the chance to do something similar not just in the UK but Europe as a whole.”
The European opportunity
Mainland Europe could also benefit, but only if it can streamline immigration processes and reduce bureaucracy, founders and investors say.
In January, European Central Bank president Christine Lagarde said Europe could have a chance at attracting disillusioned talent from the US following Trump’s election — and various organisations in Europe launched campaigns to attract researchers and engineers. But that didn’t push the needle enough.
“US researchers were desperate for alternatives, but Europe didn’t step up boldly enough,” says Judith Dada, general partner at Visionaries Club. “What’s needed are daring moves: leaders willing to bring talent in quickly, even if it means fighting lawsuits afterwards, and partnerships with private capital to create compensation packages that are globally competitive.”
She adds that obtaining an EU Blue Card — a residence and work permit for highly qualified non-EU nationals — is still cumbersome and can take several months.
“If Europe wants to win here, the experience needs to feel like an amazing service, not a bureaucratic nightmare,” says Dada. “The Blue Card is a good framework, but until we fix the execution at consulates and streamline the system, we risk losing this talent to other countries who can move faster.”
