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Ask HN: Have to invest 500K in a business – what can I do?

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Ask HN: Have to invest 500K in a business – what can I do?

#1
I am a not so successful software entrepreneur. Have tried my hands at a few startups but haven't made it yet.

I am planning to file for US green card using the $500K investment EB5 visa. The KEY requirements for EB-5 direct investment visa are that: - one invests $500K in a existing or new business - generate and sustain 10 NEW full time jobs for 2 years. this is key! - located in a TEA ( targeted employment area) - should have active role in management of the business (at least on paper!)

I don't want to invest in my own company because - 1. 500K would be insufficient to sustain 10 jobs as tech salaries are too high. 2. 500K is all i have, and with my track record so far, can't risk the startup failing and loosing both my investment and consequently the green card.

So any advise on safe business ideas or startups that one can invest in considering the above requirements!

Re: Ask HN: Have to invest 500K in a business – what can I do?

#4
I’m no expert in the area but if I wanted something that was lower variance/expense than a software startup and that might be doable on just $500K, I’d do research on something like a pizza joint, a diner, or maybe a franchise food service place. (Looks like Subway is one of the cheaper franchise food service places to open.)

In this case, I’m assuming your real prize is the green card, not the actual business, as I’d way rather have $500K of VOO or VTSAX than 2 Subway franchises.

Re: Ask HN: Have to invest 500K in a business – what can I do?

#7
Can you qualify for a loan? SBA loans require 25% down. 7 year payment plan.

That can get you a $2M business. Preferably tech related since you have experience in it.

Otherwise, start a tech software consulting business. $500K is plenty to bootstrap, hire a few key employees, biz development… to land some key clients…

Re: Ask HN: Have to invest 500K in a business – what can I do?

#8
Tagging so I can read about EB5 and come back later. But at first glance, and with my limited experience in tech as a founder & VP, 500k sounds far too little for 10 FTE for 2 years.

Edit -- I'm sure you've looked into it more than I have, but according to the link below, I'm seeing minimum amount for TEA of 900k if filed after Nov 2019?

https://www.uscis.gov/working-in-the-united-states/permanent...

Re: Ask HN: Have to invest 500K in a business – what can I do?

#9
I worked for a company getting EB-5 investors and had to run multiple financial models for potential businesses as a MBA Grad Student. 100% a restaurant will get the most bang for your buck (job wise). I know what a TEA is and how we obtained those to cover what we were working with. Contact me @ raouldukenc@gmail.com and we can work something out.
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