E‑2 Visa for Founders and Entrepreneurs – Can You Use Only US Investor Funds?

Many startup founders exploring the E‑2 Treaty Investor visa ask whether they can qualify using only capital from U.S. investors. In this article, we break down how E‑2 visa investment rules work in 2025, including who must provide the capital, what counts as “at risk,” and how ownership and control influence eligibility.

If you’re planning to raise funds for a U.S. business while applying for an E‑2 visa, understanding the role of foreign vs. domestic investment is essential — especially when structuring equity and proving control.

Important Disclaimer: This article provides general information and insights based on publicly available information. It is for informational purposes only and does not constitute legal advice. For legal advice and assistance tailored to your specific immigration situation, you should consult with a qualified and licensed immigration attorney.

Understanding the E-2 Treaty Investor Visa

The E-2 Treaty Investor visa is designed for entrepreneurs and business owners from countries that have a special treaty with the U.S. It allows these individuals to move to the United States to invest in and actively run a business. Unlike green card programs, the E-2 is a nonimmigrant visa – ideal for those who want to grow their business in the U.S. while keeping strong ties to their home country.

For startup founders, the E-2 visa provides a practical and renewable pathway to enter the U.S. market. Depending on the treaty country, the visa may be issued for up to five years. However, each U.S. entry is limited to a two-year stay, as reflected on the I-94 record. There is no maximum number of renewals, provided the business remains active and continues to meet E-2 requirements.

Who Qualifies as an E-2 Investor?

To qualify as an E-2 investor, the applicant must:

• Be a citizen of a country that has a qualifying E-2 treaty with the United States, such as the United Kingdom, France, Canada, Germany, Italy, Japan, or Australia. A full list of treaty countries includes over 80 nations and is available through the U.S. Department of State. 
• Have invested, or be actively in the process of investing, a substantial amount of capital into a U.S. enterprise
• Own at least 50% of the business or otherwise demonstrate operational control (e.g., through a managerial role or partnership agreement)
• Be entering the U.S. solely to develop and direct the investment enterprise
• The business must be an active (operational), legitimate enterprise producing goods or services for profit. It cannot be idle, speculative, or a shell entity.
• The applicant must confirm they will leave the U.S. when their E-2 status ends, even though renewals are possible.

The business must also be more than marginal, meaning it should generate sufficient income to support not just the investor, U.S. employees as well.

Investment Sources: US Investors vs Founder Capital

One of the most common questions founders ask is whether the E-2 investment must come from their own personal funds, or if capital raised from U.S. investors can count toward the required investment.

The answer depends on how the application is structured.

E-2 Investor

Under E-2 investor regulations, the investment must be made by the treaty national, meaning that the capital originates from the founder (or other individuals/entities of the same nationality). This demonstrates that the treaty national is personally at financial risk. For example, if a founder from Germany or Japan uses personal savings or a loan secured by personal assets to fund a U.S. startup, that capital counts as a qualifying E-2 investment. By contrast, if the business is entirely funded by U.S. venture capital and the founder contributes no personal funds, the petition will likely be denied if filed as an investor application.

E-2 Executive or Employee

However, there is another possible pathway. If the funding primarily comes from outside and U.S. investors, the petition can instead be filed as an E-2 Executive or Essential Employee case. In this scenario:

• The company itself must still qualify as an E-2 enterprise by being at least 50% owned by nationals of the same treaty country as the applicant.

• The applicant does not need to contribute their own capital, and in fact may hold 0% or little ownership. 

• The applicant must show they will direct and develop the business as an Executive/Manager or will provide specialized, essential skills.

How the Company Becomes an E-2 Company

A company becomes recognized as an “E-2 company” upon its first approved E-2 petition whether filed by an investor or by an executive/employee. Some consulates require fewer documents for subsequent E-2 filings once the company has been recognized, though most still request a full set for each application.

Key Takeaway

If you are funding your U.S. startup with your own capital, the E-2 Investor petition is the right fit. If most funding comes from venture capital or other outside sources, the application can still succeed but it may need to be framed as an E-2 Executive/Employee petition. In either case, the company must remain majority-owned (50%+) by nationals of the same treaty country as the applicant.

Control and Ownership Requirements

The E-2 visa requires that the investor must either:

• directly own at least 50% of the U.S. business, or 
• possess operational control through a position of authority (e.g., CEO, managing director, general partner) 

This control must be real and demonstrable. Passive ownership (like holding equity without management input) is not sufficient. Moreover, ownership by U.S. citizens or entities cannot outweigh the treaty national’s control. In simple terms, the business must be seen as the investor’s enterprise.

This is why it’s essential for the treaty national founder to retain meaningful ownership and decision-making authority, even if the business receives capital from U.S. investors. While serving as CEO strengthens the case, majority ownership or clear operational control must be evident to ensure E-2 eligibility. Structuring the business with this in mind can enable success without excluding outside funding.

Role of the Founder in the Business

E-2 visa holders must play an active role in running the enterprise. This is not a visa for silent investors. The founder must demonstrate:

• Day-to-day managerial involvement, or
• Strategic decision-making authority over the company’s direction

Founders often serve as CEO, Managing Partner, or Executive Director. Their involvement must be critical to the business’s operation and success. If a founder lacks decision-making power due to heavy U.S. investor involvement, it weakens the E-2 case.

Substantial Investment: What Counts?

There is no fixed dollar threshold that defines a “substantial investment,” but USCIS and consular officers generally expect the investment to be:

• Proportional to the total cost of purchasing or creating the business
• Sufficient to ensure the investor’s commitment to the success of the enterprise

In practice, many successful cases involve investments in the $100,000–$200,000 range, particularly when supported by evidence of business activity (such as leases, payroll, or contracts). However, lower amounts even as low as $50,000 can be approved if the funds are already spent in a way that makes the business operational and if there are sufficient reserves to cover upcoming expenses like salaries or office rent.

Importantly, the capital must be “at risk” — irrevocably committed to the business, subject to partial or total loss if the venture fails. Theoretically, escrow accounts and conditional arrangements may be acceptable if funds are released upon visa approval.

Risks of Using US Investment Only for “Investor” case

While it’s possible to accept capital from U.S. investors as part of a broader funding strategy, relying solely on U.S. investment creates significant risks for E-2 “Investor” applicants:

• Lack of personal financial risk: If the founder contributes no personal funds or foreign capital, they fail to meet the core requirement of the E-2 “investor” visa.
• Ownership and Control: U.S. investor participation can be valuable, but if their ownership or contractual rights surpass those of the treaty national, the business may not meet the control requirement. To qualify, the treaty national investor must hold at least 50% of the business or demonstrate clear operational control.
• Traceability of funds: When multiple funding sources are involved, consular officers require clear documentation that separates qualifying E-2 investment from other funds. Traceable documentation from the treaty national’s foreign bank account is essential.

To strengthen an E-2 “Investor” visa application while incorporating U.S. investment:

• Ensure the treaty national’s personal funds are documented and significant
• Maintain clear, majority ownership and operational authority for the applicant
• Avoid investor agreements that limit the founder’s control

Founders who thoughtfully structure their investment can still leverage U.S. funding, as long as it supplements rather than replaces their own stake. With the right balance, this hybrid approach can satisfy E-2 requirements while setting the business up for long-term success.

Alternatives and Supplements (O-1A, H‑1B, International Entrepreneur Parole)

If a founder cannot meet the E-2 investment or ownership requirements, other U.S. pathways may be more suitable:

• O-1A visa: for founders who can demonstrate recognized achievements, such as raising venture capital, founding or scaling companies, serving on expert panels or judging competitions, receiving media coverage for their work or innovations, or others. 
• H-1B Visa: for founders with a U.S. employer entity (including their startup) offering a specialty occupation role
• International Entrepreneur Parole (IEP): Temporary pathway for startup founders who raise significant U.S. investment and show public benefit, even without treaty nationality

E-2 essential employee

An E-2 treaty enterprise may bring in essential employees. These are individuals with specialized skills or knowledge that are not readily available in the U.S. labor market. Unlike executives and managers, their value lies in unique expertise, not decision-making authority.

Essential employees may include technical specialists, product developers, or professionals whose know-how is critical for the company’s operations. Their skills must be demonstrably uncommon and tied to the business’s success — for example, proprietary processes, niche industry knowledge, or a highly specialized role.

Typical Steps:

1. Company qualifies as an E-2 treaty enterprise
2. Employers identify essential employee roles and documents why the expertise cannot be sourced in the U.S. market.
3. Submit forms and evidence of the specialized knowledge/skills.
4. Consular application and interview, where the application must show their skills are indispensable to the enterprise.
5. Visa approval and entry to work in the U.S. in the specialized capacity.

Essential employees are different from executives/managers in that their role is not primarily about directing people or strategy, but about bringing unique knowledge or skills. 

Founders may choose not to reside in the U.S., but their visa status remains key to employee sponsorship.

E-2 Executives/Managerial Employees

E-2 treaty enterprises may also send employees in executive or managerial roles to U.S.. These categories are distinct from essential employees, who are brought in for unique skills not readily available in the U.S. workforce.

Executives hold upper-level authority, responsible for setting company direction, policy, and long-range strategy. They represent the top decision-makers within the enterprise.

Managerial employees fall just below the executive tier. They combine oversight responsibilities with some hands-on duties, supervising professional or operational staff and ensuring that key functions of the business are executed. They serve as the bridge between top management and staff operations.

Typical Steps:

1. The company qualifies as an E-2 treaty enterprise.
2. Petition filed for the employee under the executive or managerial category, showing that their role fits the required definitions.
3. Submit a full application packet (forms + supporting evidence) to the U.S. consulate.
4. Consulate review and scheduling of the employee’s interview.
5. Employee interview to demonstrate their executive/managerial role and eligibility.
6. Visa issuance and entry to begin managing or directing the U.S. operations.

While it is common for the founder/majority investor to apply for their own E-2 first, it is not strictly required. In some cases, the majority investor has never relocated to the U.S. or applied for an E-2 visa at all, yet the company successfully sponsored executive or managerial employees. 

Final Recommendations for Founders

For international founders from treaty countries, the E-2 visa remains one of the most accessible and renewable pathways to establish and grow a U.S. business. The most common route is the E-2 investor visa, where the founder demonstrates that they personally invested substantial capital, maintain operational control, and meet the treaty-ownership requirements.

However, the investor route is not the only option. In certain cases, a founder may instead qualify as an E-2 executive or managerial employee of the treaty enterprise. This is particularly useful where the U.S. entity is funded primarily by venture capital, angel investors, or a pooled fund, and the founder has little to no personal capital invested. If structured properly, this path allows founders to take on a leadership role in their U.S. venture without the need to show large personal investment.

Both models offer founders flexibility, but the right strategy depends on the company’s funding structure, the founder’s ownership stake, and the long-term U.S. growth plan. When designed thoughtfully, the E-2 can serve as more than just a visa, it is a renewable, practical launchpad for scaling a U.S. business and a stepping stone to long-term presence in the U.S.

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