Conservatives add business incubator immigration visa
Complements two investor streams
The federal government is expanding its new startup visa program for immigrant entrepreneurs even though it has yet to issue a single visa since the program launched six months ago.
Immigration Minister Chris Alexander announced Monday a new business incubator immigration stream to complement existing venture capital and angel investor streams.
As part of the program, entrepreneurs seeking permanent residency in Canada must first gain the support of an angel investor group, venture capital fund or new business incubator before they can apply for the startup visa.
Backers are supposed to provide seed money and mentorship to fledgling companies to help them attract investors and grow their startups into sustainable businesses that can create jobs. They’ll sometimes receive equity or a stake in the company in return.
“By linking immigrant entrepreneurs with investors and business incubators who have expertise working with startups, we believe this program will address many challenges immigrant entrepreneurs typically faced in the past,” Alexander said at the Canadian Association of Business Incubation’s conference in Toronto.
Alexander later indicated the government has yet to process any applicants but suggested that’s not necessarily a bad thing. An early challenge for private-sector partners was separating the wheat from the chaff as many were “overwhelmed with calls” from people who weren’t qualified for the program.
“They know the difference between a good idea and a bad one,” he said of the angel investors, venture capitalists and business incubators vetting the business proposals
The business incubator stream “will not require a financial investment,” Alexander said Monday. Applicants must instead secure entry into a designated Canadian business incubator program.