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How are the requirements for salary are taken care of? H1b employee must be paid market rate salary (not in stocks but actual cash)

There's investment. From the website: "Unshackled takes 5% common stock + invests up to $160,000 as a convertible note to help catalyze progress."

Yeah. Their investment comes in the form of a salary.

I don't know the details for H1b's specifically but I can tell you that they haven't had trouble meeting visa requirements for people in the program.

With $160k you can get a E2 visa

E2's have to be financed by citizens of your country of origin. http://startupimmigrationattorney.com/e2-visa-for-startups-p...