PART 1: The Truth About Letters of Support (LOS) - Don't think that having an LOS means you're safe.
SERIES: START-UP VISA – THE TRUTH BEHIND IT
100% of rejected Start-Up Visa applications had previously received a Letter of Support (LOS) from a designated organization (Incubator, Angel, or Venture)!
Amidst Canada's increasingly stringent Start-Up Visa (SUV) program, a little-known fact emerges: 100% of rejected SUV applications had previously received a Letter of Support (LOS) from designated organizations.
Los Angeles (LOS) – often seen as the first "passport" to applying for permanent residency (PR) – is not actually a guaranteed ticket to success as many people mistakenly believe.
Why was the LOS rejected even after it was established?
Before applying for permanent residency (PR), applicants must have a Letter of Loss (LOS) issued by a Designated Organization (DO). This means that any application that is rejected almost certainly had an LOS beforehand.
The simplistic belief that "having LOS means security" has led many to become complacent, overlooking the most crucial stage: demonstrating the feasibility and practical operation of their startup project after receiving LOS.
Immigration Canada takes decisive action.
In response to the abuse of the LOS (Low Loss) system, the Canadian Department of Immigration, Refugees and Citizenship (IRCC) has taken strong action:
- On July 31, 2024, IRCC announced the termination of its partnership with the two largest DO management organizations – National Angel Capital Organization (NACO) and Canadian Venture Capital and Private Equity Association (CVCA) – in order to reassess the effectiveness of the program.
- At the same time, the designation of new organizations authorized to issue LOS (Land Use Rights Certificate) is temporarily suspended.
- IRCC also sent surveys to all entrepreneurs who had received PR, asking them to evaluate the quality of services provided by LOS-granting organizations before, during, and after the project implementation.
These actions send a clear message: IRCC no longer places absolute faith in the Letter of Support.
"Today's Start-Up Visa isn't a race to get LOS (Freedom of Arrival) status, but a race to prove the true value of your project."
The advertisement "100% LOS-approved" - no longer makes sense.
Nowadays, advertisements like "100% guaranteed LOS" are outdated and misleading. The important thing isn't whether or not you have LOS, but rather:
- Who grants LOS?
- What is the credibility and practical support capacity of that organization?
- Who will partner with the client to operate the project after the LOS (Law of Sale) is granted?
In an environment where LOS is only in its early stages, choosing the right partners is crucial to success.
The dark side that few people talk about.
Behind the impressive numbers lie harsh realities: projects fail, products don't develop, and businesses exist only on paper.
When IRCC reviewed the application, these gaps became apparent, leading to the inevitable outcome: the PR application was rejected.
Many downsides have been hidden from the media spotlight. But we believe that customers deserve to know the truth before embarking on their SUV journey.
KeyApply and Ontario Startup Studio: Putting project quality first.
At KeyApply and Ontario Startup Studio, we don't simply help clients obtain a Letter of Support from a reputable organization. We support them from developing viable business ideas and providing practical operational advice to assisting with project development throughout the PR approval process.
With our unique full-time studio model supporting Start-Up Visa businesses in Canada, our team of technology, business, finance, and legal experts is committed to not creating fictitious projects, but focusing on real quality and real value for our clients.
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PART 2: Canada Start-Up Visa Needs Restructuring
"Don't let your application fail because you choose the wrong project – one that doesn't have a real product, doesn't meet Canadian requirements, and doesn't have a Canadian operational team to support you."
