Proposed USCIS Rule Aims to Foster Innovation and Entrepreneurialism

On Wednesday evening, Republican presidential candidate Donald Trump attempted to clarify his plan for immigration reform and continued to grab (largely negative) headlines. With a lot of hype focused on this particular speech, it's important not to overlook an immigration development that occurred last week intending to enhance options for a group of job creators and innovators: immigrant entrepreneurs.

Even though they account for only about 13 percent of the population, immigrants created more than a quarter of new businesses in the United States in 2014, and more than 20 percent of the Inc. 500 CEOs are immigrants. More than half of billion-dollar startups in the United States were founded by immigrants, according to a March report from the National Foundation for American Policy (NFAP). The study also reveals that immigrant founders created an average of 760 jobs per company in the United States, and the value of those companies is $168 billion, which, the NFAP points out, is close to half the value of the stock markets of Russia or Mexico. In addition, more than 40 percent of Fortune 500 companies were founded by immigrants or the children of immigrants, according to a study by the Partnership for a New American Economy.

On Fri., Aug. 26, U.S. Citizenship and Immigration Services (USCIS), proposed the International Entrepreneur Rule, which would allow foreign entrepreneurs who "provide a significant public benefit through the substantial and demonstrated potential for rapid business growth and job creation" to live in the United States for up to five years. The long-awaited rule, which is part of President Barack Obama's 2014 immigration executive actions, would include an initial two-year grant of parole to a qualifying "International Entrepreneur," with one additional three-year renewal allowed. On a case-by-case basis, the Department of Homeland Security would be able to parole eligible entrepreneurs of startup enterprises:

• Who have a significant ownership interest in the startup (at least 15 percent) and have an active and central role to its operations;
• Whose startup was formed in the United States within the past three years; and
• Whose startup has substantial and demonstrated potential for rapid business growth and job creation, as evidenced by: receiving significant investment of capital (at least $345,000) from certain qualified U.S. investors with established records of successful investments; receiving significant awards or grants (at least $100,000) from certain federal, state or local government entities; or partially satisfying one or both of the aforementioned criteria in addition to other reliable and compelling evidence of the startup entity's substantial potential for rapid growth and job creation.

Despite the countless contributions of immigrant entrepreneurs to America's economy, the current U.S. immigration system is not ideal for them. There is no specific visa option for startup founders. The E-2 investor visa is an option, but it's restricted to citizens of designated treaty countries. Another option is the H-1B visa, which typically applies to those wanting to work in the United States for an employer and poses significant challenges for those interested in self-sponsorship. Additionally, the H-1B visa is subject to a lottery system, for which 236,000 petitions for temporary high-skilled workers were received this year for only 85,000 available visas. Jyoti Bansal, founder of AppDynamics, which works with HBO to ensure smooth streaming of online viewing, came to the United States on an H-1B in 2000. He was restricted to working for other startups until he received his employment-based green card an agonizingly long seven years later. He started AppDynamics in 2008, and today the company employs more than 900 people and is valued at $1.9 billion.

Unfortunately, the International Entrepreneur Rule is merely a stopgap in lieu of legislation to fix our broken immigration system. The strict requirements and investment demands will severely limit those able to take advantage of the rule, and, in fact, the DHS estimates that only about 2,940 entrepreneurs will be eligible for parole each year. Not exactly a ringing endorsement for all of the best and brightest from around the world to be part of the next wave of U.S. innovation.

The rule is open to public comment for 45 days. If you'd like to weigh in to ensure that the policy best helps entrepreneurs create jobs, and ultimately continues to boost the American economy, you can do so here. We'll be sharing our thoughts on our Immigration Blog in the coming weeks on how the rule should be simplified, strengthened and improved after the comment period.

Once The Domain Of Millennials, Uber And Lyft Are Now Pursuing Seniors

Ride-hailing services want to make sure Grandma Betty can get to bridge club just as easily as her 22-year-old grandson travels to and from ... whatever it is young folks are doing these days.

Once the domain of 20-somethings who might have a drink or two and need a safe ride home, companies like Lyft and Uber have set their sights on a different age range entirely: senior citizens.

Lyft announced Tuesday it has partnered with GreatCall, a mobile phone company that specializes in providing cell phones to seniors, to extend its ride-hailing services to those who ― like the elderly ― may not have a smartphone, much less want to learn how to use an app on one to hail a ride.

Instead of an app, GreatCall customers dial “0” to talk to an operator, who can provide a cost estimate and book a ride. The fare is tacked onto the customer’s monthly cell phone bill.

The L.A. Times notes Uber struck up a similar arrangement with a company called 24Hr HomeCare last week.

Several third-party ride-hailing services also specialize in giving lifts to older adults who don’t have smartphones, including GoGoGrandparent, a newer entrant that adds additional features like meal and grocery delivery options.

As people age, one thing to go is the ability to drive. That means losing your freedom to get to doctor’s appointments and to stay social with friends.

This is far from either company’s first foray into the senior market, which, judging by recent moves from both Uber and Lyft, seems ripe for disruption.

And it couldn’t come at a better time. The first wave of the so-called “baby boomer” generation turned 65 in 2011, with the number of Americans aged 65 and older projected to keep growing until 2030, when it’s expected to peak at around 71 million people.

Earlier this year, both Uber and Lyft began offering non-emergency medical transport services, specifically targeting customers whose rides would be reimbursed by Medicaid. 

And in the Denver suburb of Centennial, where 15 years from now at least 30 percent of the population is projected to be over the age of 65, city officials are exploring replacing current dial-a-ride services with less expensive, more efficient rides via Lyft.

Starting Aug. 17, the city has embarked on a first-of-its-kind, six-month long pilot project, paying for Lyft rides to and from the area’s major light-rail station in a bid to increase mobility.

“We call Centennial the Silver Tsunami,” Centennial Mayor Cathy Noon told The Atlantic blog CityLab. “As people age, one thing to go is the ability to drive. That means losing your freedom to get to doctor’s appointments and to stay social with friends. We really want to help keep the people who started Centennial engaged in it.”

Note: The Huffington Post’s editor-in-chief Arianna Huffington is a member of Uber’s board of directors and has recused herself from any involvement in the site’s coverage of the company.

This Book Changed My Life

The director from Little Big Shots sat me down with his British accent and said, “Mr. Harvey I’d like to tell you something… and you can tell me to f*ck off and I will...b ut you’re absolutely the busiest person I’ve ever met in my life and I’m concerned about you. I want you to read a book called Essentialism.”

Photo by Joe T. Newman

Steve Harvey in his trailer.  

You know what? This book along with my anniversary trip helped changed the whole way I think. The basics of essentialism is this:  

Everybody must do the things that are essential to your life to make you happy or successful. You must eliminate everything that doesn’t make you happy or don’t lead to your success. All day long people come up to me... asking me to do things to benefit them and I had to find a better way to operate my days. This was it. 

I got half way through this book and I knew this was something I had to share... I’ve shared with my entire staff and I want to share it with you! You can preview the book for free here! 

Definitely check out author Greg McKeown’s Linkedin Speaker series below. 

Atlantic City Could Look Vastly Different in 2017

Who doesn't love a good game of Monopoly especially a real life one? Large swaths of the Atlantic Boardwalk are changing hands. Philadelphia developer Bart Blatstein is buying up practically everything that is for sale on the boardwalk. Miami based Bruce Kaye, the CEO of Fantsea Resorts, is also looking to expand his holdings in Atlantic City and is spending millions of dollars to upgrade his current properties.

Kaye is a charismatic entrepreneur that had a long storied career in real estate before he entered the timeshare business. He previously co-owned the world renowned Fontainbleau Hotel and co-developed the million square feet Miami International Mall. Fantsea Resorts, currently owns three properties in the Atlantic City Area-the Flagship located in the inlet, Atlantic Palace on the boardwalk, and La Sammana in Brigantine. The properties are in high demand with 45,000 vacation owners for the approximately 900 studio, one bedroom and two bedroom units that all are equipped with kitchenettes.More importantly for Atlantic City, he attracts tourists who stay the longest duration and want to spend money in the region not just at the gaming tables.

The high demand for units is attributable to his ability to put out a good product at a fair price. Fantsea Resort rooms are larger than average hotel rooms and include mini-kitchens, making longer stays more affordable and easier for families. The Atlantic Palace includes a pool, hot tub, member's lounge, and gym. The Flagship, which is in the midst of major renovations, will feature a lobby bar, pool, hot tub, grill, children's play room, movie theater, gym that offers classes, full service spa and large outdoor deck over the ocean perfect for weddings and parties.Their restaurant, the Blue Water Grille, has the best views in Atlantic City.

One could be forgiven for thinking they were in the South of France as boats sail by at they eat their expertly cooked branzino or surf and turf. The Flagship property will get an even bigger boast when the boardwalk in front of the property is finally refurbished next year. This will be the first time the boardwalk is completely walkable for possibly the first time in 25 years.

Kaye is seeing such great demand in Atlantic City that he is negotiating with Revel Casino owner Glenn Straub to take over the 12 unfinished floors of the Revel Casino and convert them to timeshares. As with all things related to Straub, it might be hard to complete a deal. The one disadvantage of a timeshare deal at the Revel would be the casino operator would not be able to use those rooms for gamblers.

The timeshare industry has been rightfully criticized in the past for some shoddy practices. It appears to have cleaned its act. The industry has grown 7% annually since 2011 with $8.6 billion in sales for 2015. Kaye was honest about the industries past reputational problems by indicating that there were some bad apples n the business in the 70's and 80's, but pointed out the largest leaders- Marriott, Disney, Hyatt, Starwood, Wyndham; are part of the leisure industry today.

He explained, "The timeshare owners experience depends on the financial strength of the operator. We are strong." A cursory glance at the company's financial records revealed 96% of the timeshare owners are paying their mortgage on time, which indicates a high degree of satisfaction with their property. Approximately 15% of the owners become repeat customers and buy more units.

The gregarious mogul treats his employees, many of whom have been with him a long time, as extended family. He serves 3 meals a day to more than 500 employees at the Flagship. When his son declined to enter the business, he established an ESOP to sell the company to his employees with the share price rising appreciably since inception.

While Kaye has been in Atlantic City for over 25 years, Blatstein is a new entrant into the Atlantic City market buying his first commercial property last year. He believes he is buying real estate at a rock bottom prices in Atlantic City, which still attracted more than 24 million people visitors last year despite the closing of 4 casinos in 2014. He said, "Property on the boardwalk in Atlantic City is going for $30 a square foot. In nearby Margate and Ventnor, it's going for $1000 square foot. When I go into an area, I buy critical mass. I welcome other developers to come in."

He has thrown out the idea that if Atlantic City could attract celebrities it would become "hot". So it would not be surprising if when the Showboat re-opens next summer, after a major overhaul this winter, there is a celebrity living there. Let's hope it's not Kanye and Kim Kardashian West. Or he could go the entirely opposite way in developing Atlantic City. He has proposed to New Jersey legislators that they declare Atlantic City an Opportunity Zone which does not levy state and local taxes on senior citizens. While Florida never has to feel threatened that Atlantic City will become more popular for the elderly, it certainly could become a viable alternative for many in the Northeast that want to stay more involved with their grandchildren and are fearful of the Zika virus. Blatstein, ever the showman, likes to do the big reveal so he is keeping details close to the vest for now.

He is also in talks with investor Carl Ichan to take over the currently closed Trump Plaza. Unfortunately, his 2015 lease/purchase of the pier near Caesar's, now called The Playground, did not include any parking, which has prevented its rebound.The Plaza acquisition would give him the much needed parking capacity. He has big plans for the property including a walkway which would connect the Tangers Outlet to the boardwalk. He pointed out that "shoppers currently have to use narrow alleyways to get to the outdoor mall from the boardwalk".

The Showboat's controversial neighbor to the right, Straub, has proven to be toxic to everyone-the Casino Reinvestment Development Authority (CRDA), politicians, and fellow developers. He is no closer after 2 years of ownership to opening the property. Unfortunately, this is modus operandi. After he bought the Palm Beach Polo Golf and Country Club, the Palm Beach Post labeled him "The Man Wellington Loves to Hate" after home owners at the property complained about him.

On my last visit, there will signs of life at the Revel. There were about 15 male executives, possibly from the Connecticut casino operator that he has contracted with or the E sports fantasy company that is considering making the Revel their national headquarters, working in the office. Straub seems almost prisoner of the palace that he bought on the cheap. He is no longer living on his yacht, the Triumphant Lady, but in a makeshift bedroom smack in the middle of his offices. On the day we met to discuss his plans for the casino, he was rambling, for some reason, about bringing up 2800 horses from Florida to house at the currently closed Atlantic City racetrack. Although he bought a casino property, he clearly wants to be in any other business but gambling. One idea that he has thrown out is to house one of the leaders of the E sports fantasy industry in the Revel. He dreams of holding their competitions at Boardwalk Hall.

The cantankerous developer blames his problems on NJ politicians. He complains to anyone who will listen that "no one from the governor's office or the state legislature has come to see me." Meanwhile his neighbor on the boardwalk, Bart Blatstein, was able to partially open the Showboat in 5 weeks. Although he has threatened to leave Atlantic City, I suspect his bizarre threats are just a cry for attention since he has told me in several interviews, "I am stubborn and never give up." He also has no reason to sell. Straub said, "I bought for $89 million a building that was built for over $2 billion, the power plant next door for $50 million, and my carrying costs so far have been $24 million ($1 million for 24 months). That is a total of $150 million for a building that cost over $2 billion to build. I can afford to hold on."

Could 2017 be the year that Atlantic City finally rebounds? Those of us that are nostalgic about the ocean resort have been saying next year is the year for decades. Every time, Atlantic City takes two steps forward, such as luring new money to the city and electing a competent mayor, it takes three steps backward with the New Jersey legislature threatening to legalize gambling in North Jersey. The difference this time is that exceptionally talented real estate developers such as Blatstein don't stop until they succeed. It would help if the banks, which have been burned in the past in Atlantic City, started investing again.

5 Reasons To Choose Private Equity Real Estate Funds

Sell everything. That's what famed investors such as George Soros, Carl Icahn, Jeff Gundlach, Bill Gross and Stan Druckenmiller have been preaching about equities since May, noted Barrons this August--at the same time CBOE's Volatility Index fell to its lowest level in two years.

Despite the fact that the 2016 S&P 500 is up 5.9 percent on a price basis in the face of uncertain times (think Brexit, the U.S. elections, the record low yields of the U.S. 10-Year Treasury Note and more), the stock market can't and won't go up forever. Bad news drives interest rates lower, and lower rates support loftier valuations, said Barrons.

Bonds are equally risky. In a weak business climate, the fixed yields of bonds look more attractive as stock prices fall. But that traditionally inverse relationship between stocks and bonds has broken down in the last two decades, noted The Wall Street Journal.

A 2016 McKinsey Global Institute report suggests the combination of higher interest rates, lower economic growth and weak corporate profits is here to stay - and a portfolio made up only of stocks and bonds will generate lower returns for years to come.

Commercial real estate has the potential to offer long-term returns that are both healthy and stable. Most significantly, when added to a traditional portfolio of stocks and bonds, this asset class can decrease volatility and increase returns. But it's important to understand the different types of real estate investments you can make, and each one's potential impact on your portfolio.

For instance, an investor recently asked us why buy into our Fund III at Origin Investments instead of a successful publicly traded REIT such as Realty Income Corp. (O-NYSE)? Both products boast similar target returns, and the REIT has a lot going for it. This includes:

• A proven long-term record of 14 percent returns (compared to Origin's Fund III's targeted return of 17-19 percent), with a current dividend yield of 3.76 percent;
• Dividends that have increased over time; and
• Liquidity, since the REIT is traded on an exchange and can be sold like any other stock.

In truth, when it comes to deciding between a publicly traded REIT and a private equity real estate fund, it isn't an "either-or" proposition but rather an "and" proposition; you don't necessarily have to choose between the two. Here's why, along with four other compelling reasons to invest in private equity real estate funds:

1.Unlike REITs, private equity real estate isn't tied to stock market fluctuations.
While public real estate products can be lucrative investments, they are highly correlated to the stock market. That means they rise and fall based on what's happening in the economy, and their values can be impacted by events that have nothing to do with real estate fundamentals. Because of this, adding publicly traded REITs alone will not necessarily improve your portfolio's risk-adjusted returns.

2.Public equity real estate funds achieve different investing goals.
When evaluating a potential investment, it important to look at alpha and beta. Beta measures the volatility of a fund relative to the market by gauging how much the fund's returns move up or down given the gains or losses of its benchmark market index. Alpha is the difference between a fund's expected returns based on its beta and its actual returns, and it is sometimes interpreted as the value that a portfolio manager adds, notes Morningstar.

Public REITs are a good example of the difference between alpha and beta.

With pubic REITs you are essentially buying beta, while a private equity real estate fund seeks to achieve alpha--and does with strategic business plans for properties and skilled asset managers. Origin's goal is to outperform the market on a risk-adjusted basis and achieve returns well above the index. We focus on finding high quality, underperforming commercial real estate properties that can be turned around. Our philosophy is that this is the best way to protect the downside while maximizing the upside of each deal.

3. REITs are a volatile asset class.
When the economy tanks, REITs can get hit hard. "In 2007 and 2008, REITs lost 15.7 percent and 37.7 percent, respectively," the Wall Street Journal noted recently. Also, since 2000, REITs "are second only to emerging-market stocks as the most volatile asset class. And with interest rates likely to rise, the next few years could be tough," especially for investors buying REITs now, concluded the WSJ.

4. Funds minimize risk exposure.
Our private equity funds are one of the most effective options for investors because they are a diversified investment. At Origin, each of the properties in a fund are run as a separate businesses. So if one underperforms it doesn't impact the others. A deal by deal investment strategy does not offer this same benefit.

To better gauge how well a fund will perform, it also helps to look at a company's other products. In our case, our earlier Funds I and II had projected returns of 17-19 percent, however Fund I is on track to generate a 28 percent net return and Fund II is on track to deliver a 26 percent return. Preqin, an industry leader that tracks performance of private equity fund managers, ranked these two funds in the top quartile as of June 2016.

5. Consider the manager's alignment of interests.
According to Towers Watson, a leading global advisory company, co-investment is the most effective way to align the interests of a manager and investors. We started Origin to invest our own capital, and maximizing investment performance remains our primary goal. We continue to keep our skin in the game with Fund III by committing $10 million of our personal resources.

If private equity real estate isn't part of your portfolio, it needs to be; asset allocation is a large determinant of investment success. Private real estate has low correlation to other asset classes, high expected returns and low volatility. That makes it a trifecta, since most asset classes only have one or two of these qualities.

CEO Of Giant Corporation Tells US Government He's The Boss Of Them

Are We the People the boss of giant multinational corporations, or are they the boss of us?

Imagine, if you will, going to the IRS and saying, "I don't think the tax rate is fair so I'm not going to pay it." Regular Americans can't do that. But Apple just did.

Apple's CEO Tim Cook was interviewed by the Washington Post early this month. He was asked about the vast sums of profits that Apple has shifted into overseas tax havens thanks to a loophole in US tax law that lets them "defer" paying taxes on those profits as long as the money technically stays outside the country. Cook said (emphasis added, for emphasis):

And when we bring it back, we will pay 35 percent federal tax and then a weighted average across the states that we're in, which is about 5 percent, so think of it as 40 percent. We've said at 40 percent, we're not going to bring it back until there's a fair rate. There's no debate about it.

What would happen to any regular American if they did what Cook did, and said they they aren't going to pay taxes because they don't think the tax rate is "fair"? (Hint: Jail. And maybe 2 or 3 years added to the sentence for the contempt of saying, "There's no debate about it.")

But Apple is a huge multinational corporation, and these days huge multinational corporations are the boss of our Congress. So, CEO Cook gets away with it -- and with keeping $181 billion in tax havens to dodge paying $59 billion in taxes. Cook knows he can just come out and say they are not going to pay their taxes until there is a "fair rate."

Of course, huge multinational corporations will tell you a "fair rate" would be zero. Or better yet, how about We the People just bow down and pay taxes to them. The corporate tax rate used to be 50%. CEOs complained it was "unfair" so it was lowered to 35%. Also, by the way, Apple can deduct taxes it pays elsewhere, including to states, from its federal tax bill.

Think about what We the People could do with that $59 billion Apple owes us.

In all multinational corporations have more than $2.4 trillion stashed in tax havens, dodging maybe $700 billion in taxes.

Think about what We the People could do with that $700 or so billion they owe us.

Meanwhile

Americans for Tax Fairness released a new investigative report showing that Gilead Sciences exorbitantly priced hepatitis C medications -- price gouging ill American patients -- then shifted billions of dollars of the resulting profits to offshore tax havens to dodge taxes.

An August 21 news story in FORA, an Irish business publication, confirmed key findings of the report:

Company filings show that one of the firm's main Irish subsidiaries had revenues of $2 billion in 2012 and made a full-year profit of $1.3 billion but paid nothing to the Irish exchequer as the firm was tax resident in the Bahamas - where zero corporate taxes apply.

At the end of the year, after which the subsidiaries finances are not publicly accessible, the Irish subsidiary had accumulated profits of just under $7 billion.

The company also transferred the ownership of one of its most valuable money-makers, which it acquired for $11 billion, to a separate Irish subsidiary.

So, this company gouges sick Americans and shifts the profits out of the country to dodge taxes. Are We the People the boss of these giant corporations, or are they the boss of us? Whose government is this, anyway? Who is our economy for?

"The Little People Pay Taxes"

Times have changed. People and companies didn't used to get away with snubbing their nose at We the People, and doing things like dodging taxes.

In the 1980s Leona Helmsley was known as the "Hotel Queen." Helmsley and her husband Harry were known for buying apartment buildings, forcing out the tenants, and converting them into condominiums. The Helmsley real estate empire included the Empire State Building.

They also owned hotels. Leona ran as many as 30 Helmsley hotels, with the luxurious Helmsley Palace at the peak, and became famous after she was featured in advertisements.

But Helmsley became known as "the Queen of Mean," because she was notorious for doing things like abusing employees, firing them at Christmas, even evicting her son's widow a few days after he died. Eventually a dissatisfied employee turned her in for various tax crimes and she was indicted on 235 state and federal counts.

The Helmsleys were charged with using hotel money to buy personal items to evade income taxes. Helmsley famously said of the charges, "We don't pay taxes. Only the little people pay taxes."

We the Little People sentenced Helmsley to 12 years in jail for evading $1.7 million in taxes (eventually resulting in 19 months in jail and 2 years of home arrest.) At her sentencing the judge said:

'There is a community that needs to be served by the enforcement of the law. . . . It is my judgment the motion for sentence reduction should be denied.'

Griesa said that Helmsley's conduct had been 'deliberate, fraudulent, directed against the United States government. It involved evasion of taxes.'

Helmsley was sentenced to jail for evading a pittance of $1.7 million in taxes. Today Apple owes $59 billion. In this age of "mass incarceration" for regular people, imagine a wealthy Wall Street banker or corporate CEO going to jail for something. Actually, you can't even imagine it.

No, instead this is today's reality: Lawmakers Overseeing Wall Street Given Bigger, More Favorable Loans Than Others: Study.

Senator Wyden Says End Deferral Loophole

Some people are trying to restore our democracy, and make We the People the boss of the giant corporations and wealthy CEOs again.

Senator Bernie Sanders has been calling for ending this deferral loophole for a long time. His residential campaign platform called for using the resulting revenue to pay for $1 trillion of infrastructure repair. Senator Elizabeth Warren has also called for ending this loophole.

Last week Oregon Senator Ron Wyden penned an op-ed calling for an end to this corporate tax haven "deferral" loophole, titled "Ending the Biggest Tax Rip-Off -- Tax Deferral." In it Wyden wrote:

...[Tax deferral] is the rule that encourages American multinational corporations to keep their profits overseas instead of investing them here at home, and it does so by granting them $80 billion a year in tax breaks. This policy is as foolish as it is unfair. It simply defies common sense.

Most Americans probably aren't familiar with deferral ...but ... some of the most profitable companies in the world can put off paying taxes indefinitely while hardworking Americans must pay their taxes every year.

Unfortunately, Wyden resorts to offering to bargain with the corporations, offering lower tax rates if they would please invest in the US. Like so many others, Wyden has forgotten that Congress is supposed to be the boss of the corporations.

Sign The Petition

SIGN THE PETITION: Stand with Americans for Tax Fairness and Public Citizen and demand that U.S. Treasury Secretary Jack Lew investigate Gilead's multi-billion-dollar tax dodging scheme and make Gilead pay the taxes it owes U.S. taxpayers.

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This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progressive Breakfast.

Why Failure Makes You a Better Entrepreneur

Here's a not-so-shocking newsflash: nobody wants to fail.

While I don't know them personally, I'm pretty sure that none of the hundreds of American athletes traveled to the Olympics with the "F word" on their minds. There is absolutely nothing emotionally pleasant about failing, because it makes you feel like, well, a failure!

But if you want to be an entrepreneur, you'd better suck it up and get used to it.

Last month, I sat down with Forbes' 30-Under-30 Creator, Randall Lane, to discuss the entrepreneurial honorees for this year (check out our full video interview here on The Unicorn in the Room).

Now, the 30-Under-30 are the cream of the crop millennial entrepreneurs, who are building game-changing companies in twenty different industries. As you peruse the list, you'll find that each of them are very different - but according to Lane, the three traits they all have in common are originality, spirit, and fortitude.

"If you're going to be an entrepreneur, that's what it takes. Because you're going to fail, fail, fail, until you succeed," he explains. "And we're looking for people who can overcome failure even at a young age."

Why Failure is Necessary
The list of successful entrepreneurs and self-made billionaires who overcame adversity on their way to the top is long. Very long, in fact. Oprah's first boss told her that she was "not right for television" and now she's a television icon. And don't forget that Steve Jobs was once fired from his own company!

I could go on, but you get the point. Overcoming adversity makes us stronger. Lane believes that one of the reasons that America is such a great place to be an entrepreneur is the general acknowledgement that failure leads to success.

In many cultures, failure is associated with shame - if you fall down once, you don't get back up again. You don't get access to credit or doors opening for you anymore and there's pretty much a perpetual cloud hanging over your name. But in the States, over the last twenty years or so at least, it's accepted that you have to make mistakes in order to develop. "Frankly, it's a lot easier to raise money after you've failed once, because people understand that you have to learn," Randall says.

Failure (cold, hard and scary as it is!) is the best way to learn. Look at a company like Instagram. Kevin Systrom originally started it as a geolocation app and almost nobody used it. He was staring at failure, running out of money and decided to focus on filtering photographs instead. Systrom switched things up and is now a 32-year old billionaire; Instagram has over 500 million users worldwide, making it one of the top social networks in the world.

All of this to say - learning to embrace failure isn't about setting yourself up to fail, it's about emerging from the ashes of defeat stronger and more determined. If being an entrepreneur is your life passion, then let learning from your mistakes guide your great journey.