Preeti Sinha

How important is it to show aggressive revenue growth for my EB-5 project?

Answers

Philip Cohen
January 06, 2016 10:22 AM  Philip Cohen

An EB-5 project is very different from other venture or mezzanine investments. A rule of thumb for VCs is that they want to see (on average) a return of 5-7 times the original investment within 5-7 years, so plausible aggressive growth is important.

In EB-5, however, aggressive revenue and growth projections do not have the same importance to an EB-5 investor as they might to other investors such as a venture capitalist. Today’s more sophisticated investors know that aggressive projections often come with additional risks. Conservative projections and core stability are more important to EB-5 investors; they simply want to know that the business will be secure enough not to fail and to create the necessary jobs and make enough money to be able to pay them back.

Marko Issever
December 27, 2017 12:27 AM  Marko Issever

Not at all. The two important things every EB-5 investor is looking for are:
first, certainty of getting the green card which first and foremost depends on required number of jobs beings actually created and
second, certainty of getting their investment back.

Making revenue out of the investment is on almost nobody's mind. On the contrary, when investors see high coupons that come with the EB-5 investments that could be the result of aggressive revenue projections that is usually a red flag. Most savvy investors shy away from those kinds of projects.

Gregory Finkelson
December 26, 2018 05:06 PM  Gregory Finkelson

It is not important to show aggressive revenue growth for your EB-5 project. Instead, you have to make sure the minimum number of jobs are created.

Back

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.