Publication
What projects can American funds invest in?
American investment funds have long been a tool that helps companies around the world raise capital and scale. The United States remains a major financial center, home to institutional and venture capital investors, as well as private capital.
What projects can American funds invest in?
Investment restrictions are minimal. Funds in the United States are open to virtually all business sectors, as long as the company's activities are legal and transparent.
Popular sectors:
- Technology and IT (startups, AI, fintech, blockchain);
- Medicine and biotechnology (pharmaceuticals, equipment, telemedicine);
- Real estate and construction;
- Energy and the environment (ESG, renewable energy);
- Education, creative industries, media;
- Agribusiness and food.
The main requirement is that the business must be legal and comply with regulatory requirements.
In which countries and sectors cannot funds invest?
There are two key restrictions:
- Territorial sanctions. The US prohibits investments in a number of countries and regions:
Cuba
Iran
North Korea
Syria
Crimea, as well as the occupied parts of the Donetsk and Luhansk regions of Ukraine - Also under partial sanctions are:
Belarus
Russia
Libya
Yemen
Zimbabwe
Democratic Republic of the Congo
Central African Republic
Myanmar (Burma)
- Illegal industries. Investments are prohibited in weapons, drugs, human trafficking, financial pyramids, money laundering, and other illegal activities.
Are there any limits on investment amounts?
There are no limits for a single investor. However, the total investment volume that a fund can attract per year without additional regulation is limited to no more than $50 million.
Why is this beneficial for businesses?
- Minimal restrictions – investments can be made in virtually all sectors and countries, except those under sanctions.
- Transparency – strict SEC and IRS regulations build trust and protect investors. Jurisdictional prestige – US registration enhances a company's status.
- Flexibility – the ability to choose a suitable fund structure: venture capital, private equity, hedge fund, or SPV.
- Key steps for attracting US investment
- Determine the project structure and industry.
- Prepare legal and financial documentation.
- Register a fund or company in the US (Delaware is a popular option).
- Develop a tax model that takes into account IRS requirements.
- Ensure compliance with compliance procedures (SEC, AML, KYC).
- Establish an infrastructure for working with investors.
- Ensure transparent reporting and fund management.
US funds can invest in virtually any project and industry, with the exception of restricted jurisdictions and illicit businesses. Minimal restrictions and global trust in the US make this jurisdiction one of the most attractive for raising capital.
Antwort Law supports clients at every stage—from choosing a structure and registering a fund to long-term support and compliance. Contact us to help your project secure capital from the US and reach the next level of development.
Vladislav Makarenko
Managing partner
Antwort Law
Actual Services
FAQ
Are there any limits on the amount of investment the fund can make in the US?
There are no restrictions for one investor. However, the total amount of funds that the fund can attract at an early stage is regulated and must not exceed the established limit. In the future, an expansion procedure is possible.
Can foreign investors participate in a US fund?
Yes, participation is open to both US and foreign investors, with the exception of sanctioned countries.
Who can be an investor in a US fund - only qualified investors or also non-qualified ones?
At the start, the fund can work with both qualified and unqualified investors. For the latter, there are certain quantitative restrictions that can be lifted after additional regulation.
Is there a limit on the number of investors in an American fund?
There are no restrictions for qualified investors. For non-qualified investors, there is a limit that can be expanded by registering with additional requirements.
What are the benefits of operating a fund in the US?
The ability to legally attract investments through bank accounts.
Lower operating costs compared to other jurisdictions.
The reputation of the American fund, which is valued throughout the world.
Flexibility in choosing projects for investment.
How can an American fund invest in projects outside the US?
Yes, the fund can create special purpose vehicles (SPVs) in different countries and invest in international projects, with the exception of prohibited or sanctioned jurisdictions.
Are there any asset allocation requirements for a US fund (e.g. stocks, real estate, startups)?
No. The Fund independently determines the investment strategy and asset distribution within the framework of current legislation.
What are the minimum requirements for a fund structure in the US?
It is necessary to appoint a US resident director, have a legal address (you can use the Regus service), and also launch your own website and phone number to work with investors.
Can an American fund work with investors entirely online?
Yes, all work with investors can be done remotely - concluding contracts, completing KYC/AML and making payments are available in electronic format.
How much does it cost to set up a fund in the US?
The cost of registering an investment fund in the USA depends on the fund structure and the investor's business model. To prepare an individual calculation, contact us and describe your project.