Skip to content
PELHAM · E-2 FIELD GUIDE

Does a high valuation establish substantial investment automatically?

Sources checked:

THE DIRECT ANSWER

No. Assess qualifying invested capital against the actual cost and nature of the enterprise. Estimated value is not itself money committed at risk.

Identify each financial measure

Distinguish valuation, asking price and agreed terms. A larger headline figure does not remove the other E-2 conditions.

Before spending time on a personal file, establish the ownership of the U.S. business: who the ultimate individual owners are, what citizenship they hold, whether any of them is a U.S. permanent resident, and whether the enterprise has been recognized as a treaty enterprise already. Confirm how the actual commitment will be assessed rather than borrowing a number from an unrelated case, since a larger payment does not repair an unresolved nationality or business-operations problem. A lease in a personal name affects ownership and control; an unpaid supplier order affects whether capital is genuinely committed; a revenue forecast built on the old premises affects marginality. If the revised plan can no longer support more than a minimal living for the household, discuss whether a significant economic contribution is demonstrable, or whether the territory itself should change before capital becomes irrevocable. The investor must hold treaty-country nationality, place substantial capital irrevocably at risk in a real operating business, and develop and direct it through at least fifty percent ownership or operational control.