15 Years of Backing Immigrant Founders: Why the “Rules of the Game” Just Changed.

When we started TSVC ( a.k.a. TEEC Angel Fund) in the heart of Silicon Valley in 2010, the mission was clear: back the most brilliant technical talent in the world, regardless of where they were born.

At that time, our entrepreneurs were often immigrants — many from mainland China — who were building deep roots here. Some had US passports, some had Green Cards, and many were navigating the long immigration process. The challenges then were purely entrepreneurial: product-market fit, scaling, and out-competing the incumbents. If you had the vision, we were ready to be your first institutional check — just as we were for Eric Yuan at Zoom in 2011.

But today, in 2026, the landscape has fundamentally shifted — especially for the “Repatriates.”

I’m seeing a new generation of founders: U.S. citizens and long-term residents who moved to Asia to build over the last decade and are now returning to the U.S. to “onshore” their companies.

They assume that because they have the right passport, the door is wide open. The reality is much more complex.

Under the OBBB Act of 2025, the U.S. government has moved the goalposts. For the first time in my 15+ years of seed investing, the “Passport Test” is being replaced by a “Sovereignty Audit.” Even if you are a U.S. citizen, if you are a repatriate bringing a company back, you face three new “Invisible Walls”:

1. The 24.9% Trap: Even for U.S. citizens, if your cap table still carries significant foreign-linked equity or “shadow” control, your company can be flagged as a “Foreign Entity of Concern.” This can instantly disqualify you from the federal tax credits that make deep-tech manufacturing viable in 2026.
2. The Capital Origin Audit: Bringing personal wealth back to the U.S. to fund your NewCo? In 2026, the new Section 4475 1% Excise Tax and deep FinCEN “Source of Wealth” dives mean your personal bank statement is now a national security document.
3. The IP Provenance: “Licensing” tech from your previous life in Asia isn’t a shortcut anymore — it’s a liability. If you don’t own the IP outright in a “Clean Room” structure, you don’t own your future in the U.S.

At TSVC, we’ve spent 15 years helping immigrants and repatriates achieve the American Dream. But in 2026, that dream requires a new kind of “Onshoring” strategy — one that is structurally “Clean” from Day 1.

Over the next few posts, I’ll share how we are helping the next generation of founders navigate this bridge. The Valley is still the best place to build, but for repatriates, the crossing has never been more technical.

To my fellow investors: How are you advising repatriate founders who are bringing their IP and capital back to the U.S. this year?

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