E3 Investment Group, headquartered in New York, announced today that Chief Executive Officer Matthew Gordon had filed for a patent to protect the intellectual property of the Scalable-Direct™ business method of structuring EB-5 investment offerings. According to Mr. Gordon, “The Scalable-Direct business method solves a number of problems. It allows investors to participate in larger, scaled enterprises, without the need for a sponsoring Regional Center. This saves time and expense, which translate into higher investor returns and lower risk.”
At the heart of Scalable–Direct™ each investor invests in his or her own separate legal entity, independent of all others. This greatly protects the investor from allocation of labor issues and from a singular massive liability producing event that could take down an entire project or venture if structured as a single investment pool. Further, Scalable-Direct™ investment opportunities, as the name implies, are by their nature ‘Scalable’. They have the ability to grow over time in a stable disciplined fashion. Unlike projects that start large and need all of their EB-5 capital at the beginning, there is no artificial urgency with Scalable-Direct™ investments. The pressure to raise capital quickly has created problems for other sponsors, where some sacrifice quality (and even legality) for speed. Ultimately, investors in a Scalable-Direct™ project can enjoy the superior cost economics that come from being part of a commonly managed and coordinated enterprise.
“We have literally built a novel legal machine,” continued Mr. Gordon, “The marketplace is beginning to appreciate the better mouse trap and we thought it was important to take this step to protect the intellectual property of the Scalable-Direct™ business model.”
Mr. Gordon is publishing Organizational Law Issues in the EB-5 Program, which fully describes the Scalable-Direct™ business model. The work will appear in Forming and Operating an EB-5 Regional Center: A Guide for Developers and Business Innovators, Editors: Angelo A. Paparelli and L. Batya Schwartz Ehrens. The book is being published by ILW.com.