The Start-up Visa in Canada

The Start-up Visa programme, abbreviated to SUV, grants permanent residence to global entrepreneurs launching a start-up in Canada.

What is the Start-up Visa (SUV)?

The Start-up Visa programme grants permanent residence to immigrant entrepreneurs while supporting them in establishing and settling into life in Canada.

The programme encourages immigrant entrepreneurs to grow their company in Canada. Successful applicants connect with private-sector organisations in Canada, from which they can obtain funding, guidance and expertise in opening and running their business in Canada.

Requirements

The purpose of the Start-up Visa programme is to recruit innovative foreign entrepreneurs who will create new jobs and drive economic growth.

To be eligible, Start-up Visa applicants must meet the following requirements:

• Meet the minimum language requirement in English or French (CLB 5 in all skills).
• Have sufficient funds to settle in Canada.
• Intend to settle in a province other than Quebec.
• Pass Canada’s security and medical checks.
• Demonstrate that their business is supported by a designated organisation.
• Demonstrate that their business meets the ownership requirements.
  No more than 5 foreign nationals may apply for permanent residence under the same business venture through the Start-up Visa programme.

Investment details

Immigration, Refugees and Citizenship Canada (IRCC)has designated a number of venture capital funds, angel investor groups and business incubators to take part in the Start-up Visa programme.

Successful applicants are required to secure a minimum investment for their Canadian start-up. If it comes from a designated Canadian venture capital fund, the investment must be at least $200,000 CAD. If it comes from an angel investor group, the investment must be at least $75,000 CAD.

Applicants need not secure any investment from a business incubator. However, the applicant must be accepted into a Canadian business incubator programme.

Applicants are not required to invest any of their own money. If their Canadian start-up does not succeed, individuals granted permanent residence through this programme retain their permanent resident status.

List of funds participating in the Start-up Visa

The list is updated regularly on the Government of Canada website athere.

*: Technology companies qualify for priority processing of their applications.

Venture capital fund

• 7 Gate Ventures
• Alt Ventures
• Amplitude Ventures Inc.
• Apex Innovative Investments Ventures
• Arete Pacific Tech Ventures (VCC) Corp
• BCF Ventures
• BDC Venture Capital
• Extreme Venture Partners LLP
• Golden Venture Partners Fund, LP
• INP Capital
• iNovia Capital Inc.
• Intrinsic Venture Capital
• Invest Nova Scotia
• PRIVEQ Capital Funds
• Red Leaf Capital Corp
• Relay Ventures
• Tangentia Ventures
• Vanedge Capital Limited Partnership
• WhiteHaven Venture
• Westcap Management Ltd.
• Yaletown Venture Partners Inc.
• York Entrepreneurship Development Institute (YEDI) VC Fund

Angel investor

• Canadian International Angel Investors
• Ekagrata Inc.
• Golden Triangle Angel Network
• Keiretsu Forum Canada
• VANTEC Angel Network Inc.
• York Angel Investors Inc.

Business incubator

• Alacrity Foundation
• Alberta Agriculture and Forestry
  • Agrivalue Processing Business Incubator
  • Food Processing Development Centre
• Alberta IoT Association
• Altitude Accelerator
• Bhive
• Biomedical Commercialization Canada Inc. (operating as Manitoba Technology Accelerator)
• Brilliant Catalyst
• DMZ Ventures
• Empowered Startups Ltd.
• Extreme Innovations
• Foresight Cleantech Accelerator Centre
• Genesis*
• Global Startups Accelerator
• Highline BETA Inc.
• Innovate Calgary
• Innovate Eastman Inc.
• Innovation Cluster – Peterborough and the Kawarthas
• Innovation Factory*
• Interactive Niagara Media Cluster o/a Innovate Niagara*
• Intrinsic Innovations
• Invest Nova Scotia*
• ISM Arts & Culture Ltd
• Knowledge Park o/a Planet Hatch
• Launch Academy – Vancouver
• LaunchPad PEI Inc.
• Millworks Centre for Entrepreneurship
• NEXT Canada
• Niagara Business & Innovation Fund
• North Forge Technology Exchange*
• Pacific Technology Ventures
• Platform Calgary*
• Pycap
• Red Leaf Capital Corp
• Roseview Global Incubator
• Spark Commercialization and Innovation Centre
• Spring Activator
• The DMZ*
• Think8 Global Institute
• TiE Toronto
• Toronto Business Development Centre (TBDC)
• Treefrog
• TSRV Canada Inc. (operating as Techstars Canada)
• University of Toronto Entrepreneurship Hatchery
• ventureLAB Innovation Centre*
• VIATEC*
• Waterloo Accelerator Centre*
• York Entrepreneurship Development Institute
• YSpace (York University)

Proof of commitment

To demonstrate that the applicant has secured support from a venture capital fund, angel investor group or business incubator, the investment organisation must submit a completed Commitment Certificate directly to Immigration, Refugees and Citizenship Canada (IRCC). This document contains information about the agreement between the applicant and the investment organisation. Its purpose is to summarise the key details of the commitment between the investment organisation and the applicant.

In addition, the applicant receives a letter of support from the investment organisation, which they must submit with their permanent residence application. Where there are two or more applicants in the same business venture, the investment organisation’s commitment may be conditional on one or more “essential persons” obtaining permanent residence.

An essential person is someone specifically identified by the investment organisation as critical to the business. If, for any reason, the essential person’s application is refused, the applications of everyone else included in the Commitment Certificate will also be refused.

Support from more than one organisation

An applicant may receive support from several designated organisations, known as syndication. In this case, all the entities involved must be identified. The designated organisations jointly provide Immigration, Refugees and Citizenship Canada (IRCC) with a single Commitment Certificate, and one Letter of Support is issued to the applicant.

Where a designated venture capital fund invests in a business, the minimum total investment in that business must be $200,000 USD, even where a designated angel investor group also invests in the same business.

If the business receives support from at least one designated angel investor group, but not from any designated venture capital fund, the minimum total investment in that business must be $75,000 USD.

The peer review process

To protect the programme against fraud, a peer review process has been introduced. It is designed to ensure that the agreements between investment organisations and foreign entrepreneurs are legitimate.

An immigration officer may request that a commitment be independently assessed by a peer review panel. These panels are established by an industry association representing the type of investment organisation making the commitment. For instance, in the case of an angel investor group, the national angel capital organisation is responsible for setting up the peer review panel.

Conversely, where the group making the commitment is a venture capital fund, the Canadian venture capital and private equity association is responsible. While a peer review may be requested where the immigration officer believes it will assist them in reaching a decision, it may also be triggered at random.

The peer review panel’s assessment is not binding on the immigration officer. It only confirms that the investment organisation carried out the appropriate checks and due diligence to industry standards. It offers no opinion on the soundness or viability of the proposal under consideration.

The peer review examines the level of due diligence carried out by the designated organisation and:

• Confirms that the company has been or will be incorporated in Canada.
• Confirms that ownership of the business has been verified and meets the programme’s requirements.
• Confirms that the designated organisation has examined the viability of the proposed business model, assessed the management team of the business venture and verified ownership of the intellectual property.
• Confirms that the focus of the business is a product and/or service with high growth potential.
• Confirms, for business incubator applicants, acceptance into the business incubator programme.