How Much Investment is Required for Canada Startup Visa?

Canada is known as a tech hub and welcomes talented entrepreneurs who want to start businesses that help the economy and create jobs.

If you're an entrepreneur, you might be able to move to Canada through the startup visa program.

This program encourages immigrant business owners to grow their businesses in Canada.

Approved applicants get connected with private groups in Canada that can provide financial help, advice, and resources for starting and managing their business.

To be approved, applicants must secure a minimum investment for their startup. If the investment comes from a designated Canadian venture capital fund, it must be at least CAD 200,000.

There are other designated organizations, like angel investor groups and incubators, that can invest in your startup, and the required investment amount varies for each.

In this article, you will find out how much investment is needed for the Canada Startup Visa and all the important details about this visa.

What is the Canada Startup Visa Program?

The Canada Startup Visa Program allows entrepreneurs to move to Canada to start a new business.

To qualify, immigrant entrepreneurs must show that their business is unique, will create jobs for Canadians, and can compete globally.

Entrepreneurs need support from venture capital firms or business incubators to apply for the program.

Also, they must own at least 10% of the voting rights for all the company shares and, along with the designated organization, at least 50% of the voting rights.

Like any other type of Canadian visa, there are additional eligibility requirements:

Have a minimum language skill in English or French (CLB 5 in all areas).
Have enough money to settle in Canada.
Pass Canadian security and medical checks.

Minimum investment requirements for the Startup Visa

The Start-Up Visa program, managed by Immigration, Refugees and Citizenship Canada (IRCC), has identified different venture capital funds, angel investor groups, and business incubators that can participate in the program.

Approved individuals must secure a certain level of investment for their Canadian start-up.

The minimum investment amount depends on the type of organization involved.

Parsam Immigration will help you prove that you have support from a venture capital fund, angel investor group, or business incubator, as well as assist you with the other forms.

How do you get support from a designated organization?

You must present your business idea and convince the organization of its value and potential.

The way you present your idea will differ based on the specific organization.

If you successfully pitch your idea, you will receive a letter of support from the organization, which is essential for your start-up visa application.

Designated organizations: Venture capital funds, angel investors, and incubators

To qualify for a startup visa, you need proof that a designated organization supports your business.

To show that you have support from a venture capital fund, angel investor group, or business incubator, the investor organization must send a completed Commitment Certificate to IRCC.

This document includes details about the agreement between you and the investment organization. Its purpose is to summarize the important information about your commitment with them.

Which designated organization can provide support for your startup?

Venture capital funds are ways for individuals and organizations to invest in early-stage companies and startups. They look for businesses that can offer high returns, usually in exchange for ownership shares.

Here are some venture capital funds you might consider for your Canadian startup visa:

7 Gate Ventures.
BCF Ventures.
BDC Venture Capital.
Golden Venture Partners Fund, LP.

On the other hand angel investors are wealthy individuals who give money to startups and small businesses in exchange for ownership stakes.

They use their own money, unlike venture capitalists who invest pooled funds from others.

Some angel investors to consider are:

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

Another great option is to apply for incubators.

Startup incubators are programs that support early-stage companies and entrepreneurs. They provide a space for startups to turn their ideas into real products.

Here are some business incubators to reach out to:

Extreme Innovations.
Genesis Centre.
Highline BETA Inc.
Innovacorp.

Investment amounts required by each type of organization

If your investment is from a designated Canadian venture capital fund, you need to get at least CAD 200,000.

If the investment is from a designated Canadian angel investor group, you need at least CAD 75,000.

You don’t need to get money from a business incubator, but you must be accepted into a Canadian business incubator program.

You also don’t have to invest your own money. If your Canadian startup fails, you will still keep your permanent resident status.

Other financial requirements for the Startup Visa

The Canadian government will need some extra documents before granting the visa to you and your family.

The same applies to other visas, like student visas or spousal sponsorship.

The startup program requires proof that you will be financially responsible and able to support yourself and your family during the first months or even years of moving to Canada.

Personal funds and settlement requirements

You need to show that you have enough money to support yourself and your family when you arrive in Canada.

This money cannot be borrowed from anyone else.

When you apply to startup visa, you must provide proof to the Canadian visa office in your home country that you have enough funds. The amount you need depends on your family size.

To qualify, the program looks at your money in relation to your family size, including those who will and won’t be coming with you.

The program uses 50% of the current low income cut-off (LICO) for urban areas with populations of 500,000 or more.

At Parsam, we recommend researching the cost of living in the area of Canada where you plan to live. Bringing as much money as possible will help you settle in more easily.

Additional costs during the application process

The costs for the IRCC include processing fees for you and everyone on your application, the Right of Permanent Residence Fee (RPRF), biometric fees, and fees from third parties (like translation services or travel costs for the biometric test).

Principal Applicant:

Processing fee: CAD 1,625.
Right of Permanent Residence Fee (RPRF): CAD 515.

Spouse or Partner of the Principal Applicant:

Processing fee: CAD 850.
Right of Permanent Residence Fee (RPRF): CAD 515.

Dependent Children:

Processing fee and RPRF: CAD 230 per child.

Biometric Fee:

CAD 85 for the principal applicant.
CAD 170 for the whole family if applied at the same time and place.

These fees cover the costs of processing your application and granting permanent residence status.

Tips for securing investment for your startup

Getting investment for your startup in Canada can be tough, but it’s crucial for getting your visa.

Here are some tips to help you attract funding:

Create a strong business plan that explains what makes your business unique, who your customers are, how you’ll make money, and your growth plans.

Include clear financial forecasts that show how your startup can make money and manage cash flow. Investors want to see realistic numbers and a clear path to being successful.

Practice your pitch several times so you can present it clearly and confidently. Be ready to answer tough questions about your business and market plans.

Show any early success you’ve had, like gaining customers, forming partnerships, or making sales.

Also, make sure your startup is ready to seek funding or join an incubator program.

Conclusions

How much investment is required for the Canada Startup Visa depends on the path you take: a venture capital firm, an angel investor, or an incubator program.

However, each path has something in common: your business idea and the potential that these designated organizations see in it.

At Parsam Immigration, we have helped many individuals on this journey, and we believe that this visa requires an expert to support you at every step.

You need to focus on your business plan and finding investment.

And when you need assistance, we’ll be here to ensure every form and application is ready to be submitted to the highest standard.

If you want to make your Canadian vision come true, reach out to us here.

Your dream is our goal.