This is the most heavily scrutinized part of an E-2 case, and most denials trace back to it.

A substantial investment. There is no minimum dollar figure. Under 9 FAM 402.9-6(D), the government applies a proportionality test on an inverted sliding scale, comparing the qualifying funds invested against the total cost of buying or starting the particular business. As a general guide, a low-cost business (roughly $100,000 or less to start) usually requires close to 100 percent of the total cost; a medium-cost business (about $100,000 to $500,000) may require somewhere in the range of half to three-quarters; and a high-cost business (in the millions) may qualify with a smaller percentage, perhaps the low tens, as long as the absolute amount is large. So $75,000 put into a business that costs $75,000 to start is a 100 percent commitment and is strong, while $100,000 put into a business that costs $2 million is only about 5 percent and will likely fail. As a practical matter, investments below roughly $50,000 to $75,000 tend to draw heightened scrutiny for service businesses regardless of the math.

What counts as the investment. The investment is the placement of capital, including funds and other assets, at risk to generate a profit (8 CFR 214.2(e)(12)). It is broader than cash sitting in a corporate account. Qualifying expenditures can include prepaid commercial leases, equipment and inventory, business vehicles, professional fees for entity formation, accounting, and marketing, and intellectual property transferred to the U.S. company where it has a verifiable market value. All of it must be lawfully obtained and documented.

Capital that is at risk and irrevocably committed. The funds must be subject to partial or total loss if the business fails and must be irrevocably committed. Simply transferring money into a U.S. corporate bank account and leaving it there is treated as mere intent to invest, which is not enough. The investor must have spent the money, or be legally bound to spend it, before the visa is issued, supported by past expenditures and binding contracts or invoices. For someone buying an existing business, the Department of State allows funds to be placed in a legally binding escrow that releases to the seller automatically on visa issuance and returns to the buyer if the visa is denied; because the funds are out of the investor's control and tied to the outcome, they count as committed.

A lawful, traceable source of funds. The investor must prove the capital was acquired legally and is not the proceeds of crime, a safeguard against money laundering (8 CFR 214.2(e)(12); 9 FAM 402.9-6(B)). Acceptable sources include accumulated savings from lawful work, the sale of real estate or other assets, investment returns, gifts and inheritances, and loans, provided any loan is secured by the investor's own personal assets and not by the assets of the E-2 business. The key is an unbroken paper trail: bank statements and wire receipts for every movement of money from its origin to the U.S. business account, with matching amounts at each step. Gifts require documenting the donor's source of funds as well, plus a gift letter and proof that any required gift taxes were paid. Cryptocurrency is allowed but draws heavy scrutiny, so the fiat purchase, the growth, and the liquidation to cash must all be documented; informal value transfer systems such as hawala generate no usable records and should be avoided in favor of regulated bank wires. A typical source-of-funds file includes three to five years of tax returns, bank statements showing the funds accumulating and then moving to the business, employment or salary evidence, transaction documents such as property closing statements or stock sale receipts, and wire transfer confirmations.