Summary:
Box CEO Aaron Levie criticizes the new $100,000 H-1B visa fee, warning it creates an unfair advantage for large tech companies over startups.
The fee hike, effective September 21, turns hiring into a "spending game" that cash-strapped startups cannot compete in.
Startup founders fear the policy will "kneecap their hiring" in talent wars, pushing skilled workers to Big Tech.
Investor Michael Moritz warns the fee could push tech innovation overseas due to remote work options.
Levie proposes a six-point H-1B reform including flexible visa caps and measures to protect American wages.
Box CEO Aaron Levie is pushing back against President Trump's $100,000 H-1B visa fee, warning the policy will give large tech companies an unfair advantage over cash-strapped startups in the competition for global talent.
Speaking on "The A16z Podcast" alongside Andreessen Horowitz partners, Levie argued that the steep fee structure essentially turns international hiring into "a spending game" that smaller companies cannot win. The new policy, which takes effect September 21, represents a dramatic jump from current fees of $2,000 to $5,000.
Startup founders warn of talent wars disadvantage
The Box CEO endorsed a significantly lower $20,000 fee proposed by Khosla Ventures' Keith Rabois, saying this amount wouldn't prevent smaller companies from competing for skilled workers.
Startup founders have already told Business Insider that Trump's fee could "kneecap their hiring in the talent wars," sending international workers to Big Tech companies that can more easily absorb the costs.
The concerns extend beyond Silicon Valley's startup ecosystem. Billionaire investor Michael Moritz, whose portfolio includes Google and PayPal, has warned the policy could backfire by pushing tech innovation overseas, as skilled engineers can now work remotely from countries like India and Eastern Europe.
Beyond the fee structure, Levie outlined a broader six-point framework for H-1B reform. He called for flexible visa caps that respond to actual talent availability, potentially ranging from 5,000 to 80,000 visas annually. "There's not a fixed number of the world's best talent," he explained.
Policy should attract global talent while protecting wages
His proposal emphasizes attracting "the absolute best in the world" while ensuring H-1B programs lift rather than suppress American wages.
Levie warned against excluding junior-level international talent, citing examples like state school Master's graduates becoming AI engineers as "positive sum" contributors to the economy.
The debate highlights broader questions about America's competitive edge in attracting global talent, particularly given that successful immigrant executives like Microsoft's Satya Nadella and Google's Sundar Pichai have become symbols of the H-1B program's potential benefits.
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