Navigating the E-2 Visa for Tech Entrepreneurs and Startups 

The E-2 visa is for individuals who wish to enter the U.S. to develop and direct the operations of an enterprise in which they have invested a substantial amount of capital. 

The E-2 visa is an appealing option for investors due to its flexibility, reasonable investment requirements, and numerous benefits for both investors and their families. Unlike many other visa categories, the E-2 process is relatively quick and does not involve annual quotas, allowing investors to establish their presence in the U.S. without facing significant delays. 

Those are just a few of the many reasons why the E-2 Visa has become a hit for those in the tech and startup communities. We wanted to take a closer look at the backstory of this rise in popularity, and the result was a Joorney video webcast, Navigating the E-2 Visa for Tech Entrepreneurs and Startups.  

It was a great chance to take a deep dive into the topic and explore the reasons why the E-2 Visa is on the radar of so many tech and startup investors.  

To help guide us and answer questions related to the topic, we were joined by Bobby Chung, an immigration attorney with extensive experience representing foreign entrepreneurs in investor visa matters. Before entering private practice, he served as an Attorney Advisor with the U.S. Department of Justice, Executive Office for Immigration Review, where he assisted federal immigration judges in adjudicating immigration cases. 

You can watch the entire presentation at the link below or read some of the highlights of the conversation.  

Here are some of the key takeaways from Navigating the E-2 Visa for Tech Entrepreneurs and Startups: 

Why Is the E-2 Visa Relevant to the Tech Field? 

Here’s what our guest had to say about one of the basic questions we wanted to answer. 

“It’s (the E-2 Visa) a very popular visa for tech professionals for the primary reason that it allows for small businesses to qualify. A lot of tech professionals are not ready to invest a huge amount of capital or establish a huge business enterprise. They’re looking to expand their existing software development or IT consultancy from their home country to the United States. And typically, they want to start out small, maybe with a small staff, and oftentimes don’t require a huge amount of investment capital. That’s the main reason it gets the attention of those in Tech.”  

What Are the Basic Eligibility Requirements to Meet for the E-2? 

Unlike some other visa categories, the E-2 has some requirements to meet just in order to apply. Bobby summed them up nicely right at the start.  

“The most important requirement of the E-2 visa is that the applicant has to be a treaty national,” he says.  “There are currently about 83 countries in the world right now that are qualified for E2 treaty nationality.” 

So, if you’re not a citizen of an E-2 treaty country, unfortunately, that’s where your E-2 journey ends.  

Bobby continues with some other basics.  

“The applicant has to create a genuine business enterprise in the United States through making a substantial investment to capitalize on that business. And it needs to be a business that does make meaningful contributions to the U.S. economy, such as through job creation and a generation of substantial income. And beyond that, the applicant needs to show that he or she has the credible ability to successfully manage and operate the business. So they have to show their work experience, their entrepreneurship experience, any business training or experience, et cetera.”  

What Qualifies as a “Substantial Investment”? 

The official guidelines for the E-2 Visa call for a “substantial investment” from the applicant but what does that mean, exactly? Without a specific number to guide you, how do you know if your investment is enough? Our guest has an answer.  

“This is a very popular question and the reason is the law is completely ambiguous on how much investment is required to qualify for an E-2 visa,” he begins. “The law simply states you have to make a ‘substantial investment’, and the U.S. government’s perspective is that they can’t specify a dollar amount that’s going to be appropriate for every business model. The U.S. government just wants to be sure that the investment capital is appropriate for the business to ensure its success in the United States. This is important for the tech industry because a lot of tech businesses have low costs. The entrepreneur already has a business in their home country, in the tech business. They’re simply expanding it to the United States, and often, it doesn’t require a lot of investment to get the business up and running because they already have all the Tech, the software, and the infrastructure they need. So this is a big issue because a lot of tech professionals find it challenging to demonstrate sufficient investment spending to satisfy or to build a strong E2 visa case.” 

Does Having an E-2 Visa Give an Advantage When It Comes to Finding Investors in the U.S.? 

Here’s an advantage that many applicants may not have considered.  

“Absolutely, it does,” says Bobby. “One of the key things that investors will want to know is the personal information of the entrepreneur, the founder. And it’s very important for the founder, the entrepreneur, to be able to say, ‘I live and work in the United States and I personally manage and direct the operations of the enterprise.’ If the entrepreneur or founder can’t even live in the U.S., can’t even work there to manage and operate the business, that’s going to raise a lot of doubts for the investors’ point of view.”  

“I’ve seen situations where investors, business partners, and even customers will not enter into an agreement with the E-2 business unless they are sure that the founder, the owner, has the legal right to live and work in the United States. So it is critical for all kinds of reasons, establishing business partnership, getting outside investors, acquiring customers in many circumstances.” 

These are just some of the takeaways you’ll find in the full version of Navigating the E-2 Visa for Tech Entrepreneurs and Startups with special guest Bobby Chung. Watch the full recording of the webinar on Joorney’s YouTube channel. 

Reach out to us today to learn more about how we can support you with an E-2 Visa business plan.