Read the general investor planning overview
Before asking whether your contribution is substantial, establish the correct business-cost comparison. A purchase price, startup estimate and company valuation can describe different things. Use the actual enterprise and transaction, then reconcile the qualifying amount committed against a supported cost figure rather than selecting whichever denominator produces the best percentage.
Choose a consistent comparison
Identify whether the case concerns purchasing an established business or establishing a new operation. Build the cost figure from documents that match that transaction. Do not compare a partial payment against only one convenient asset when the purchase includes an entire operating enterprise. Ask counsel to evaluate the substantiality analysis using the real structure and supported figures.
Explain excluded and included amounts
Create a schedule listing the purchase or setup components and the evidence for each. Record debt, assumed obligations, staged payments and separate personal expenses without deciding that all have identical investment treatment. Show the reviewer how the total was assembled. An unexplained spreadsheet percentage is less useful than a transparent calculation with the underlying contracts and receipts.
Avoid turning a ratio into a rule
Proportionality is part of a broader substantiality assessment, including commitment and the ability to develop and direct the enterprise. There is no universal percentage that guarantees approval across business models. A lower-cost business generally calls for a higher proportionate investment, but counsel still needs evidence of what the money purchases and how the operation will actually function.
Separate the valuation from the transaction
A seller’s valuation, an appraiser’s opinion and the price actually agreed can all appear in the same file and describe different things. For comparison purposes the relevant figure generally derives from what it costs to purchase this enterprise or establish this one, evidenced by the transaction itself rather than by an opinion about what the business might be worth. Where a purchase price was negotiated down from an asking price, keep both and be able to explain the difference. Where an appraisal was obtained for financing or tax purposes, note why it exists, since a document prepared for another purpose can invite questions if it is presented without that context.
Show what the money bought, not only that it left
A schedule of payments demonstrates expenditure; it does not by itself show that an operating enterprise now exists. Pair each material amount with what it produced — the asset acquired, the lease signed, the stock purchased, the system installed — and note where that item now is. This also exposes double counting, which most often occurs when goodwill in a purchase price and separately listed assets are both included, or when a deposit appears again within the final settlement. Ask counsel to review the schedule against the underlying contracts before any percentage is calculated. A figure assembled carefully and explained plainly is more durable than a favourable ratio that cannot be reconstructed from the documents behind it.
What else is on your mind?
Is there one minimum investment that guarantees E-2 eligibility?Is holding money or owning an asset enough for E-2?Editorial source review: 2026-09-07. General preparation guidance, not an individual assessment.