PART 2: Start-up Visas in Canada Need Restructuring
SERIES: START-UP VISA – THE TRUTH BEHIND IT
(Excerpt translated and compiled from an article in the Financial Post, April 21, 2025)
"To regain its position as a nation attracting global entrepreneurs, Canada needs to reform, not cut, its Start-Up Visa program."
Restructuring the Entrepreneur Visa Program: Canada's Economic Challenges Demand More Global Entrepreneurs and Investors
Now is the time for trust and collaboration. Let's move forward together with passionate business partners from around the world.
By embracing innovation and welcoming a wider variety of immigrant entrepreneurs, Canada can create stronger startups and a supply of visionary business owners (and capital) to lead established businesses with fresh ideas and energy.
As Canadians seek to boost the economy amidst a global trade war, political leaders should reconsider a failed federal policy—the Start-Up Visa (SuV) program—which is awaiting renewal and adjustment to better reflect today's global realities.
SUV: A program designed with class from the start.
The Startup Visa Program (SuV) was introduced in 2013 by Stephen Harper's Conservative government to attract successful and wealthy foreign entrepreneurs to Canada.
Unlike many other initiatives from Ottawa, the SUV program was designed to be world-class from the very beginning.
From high expectations to disappointing reality
The SuV program once offered international entrepreneurs the opportunity to become permanent residents of Canada.
Immigrant entrepreneurs in Canada create more jobs, export more goods and services, and invest heavily in research and development (R&D).
However, SuVs have become bogged down in cumbersome bureaucracy, processing times of up to four years, and abuse by individuals who are not actually entrepreneurs.
Decisions to cut costs and their consequences.
In 2024, under public pressure, the Liberal government decided to reduce the number of SuV applications from 6,000 to 2,000 for 2025 and further to just 1,000 for 2026 and 2027.
The government also limited the number of designated entities to just 10 applications per year, harming established incubators and organizations that had invested heavily in supporting entrepreneurs.
Other countries are accelerating.
While Ottawa is cutting back on its program, countries like Estonia, Finland, Sweden, Singapore, and Japan are actively promoting their efforts to attract global entrepreneurs.
Consequence: Brain drain.
We have seen many eligible candidates abandon their plans to apply to Canada due to excessively long waiting times and shrinking quotas.
These talented individuals and their capital are flowing to countries that are ready to welcome them.
In the United States, President Donald Trump promoted the "Yellow Card" program, which allows those who invest $5 million to purchase citizenship – demonstrating the extremely fierce global competition.
Canada needs to change its strategy.
This situation highlights the need for Canada to diversify its trade relationships and improve its ability to attract international talent.
Without action, Canada will lose its competitive edge in the future.
A real reconstruction is needed.
The next government needs to conduct a comprehensive review of the SUV program: retain what works, eliminate the negative elements, and get the program back on track.
The business community, investors, and immigration experts need to be involved in discussions to reform the policy.
Expanding the target audience: Not just entrepreneurs, but also investors.
Canada should expand the program's target audience, not limiting it to just startup entrepreneurs but also including investors.
Many investors who have been successful in business do not want to start their own businesses again, but are willing to invest in existing businesses, helping them innovate and expand their markets.
Solving the inheritance problem
According to a report by the Bank of Nova Scotia, nearly one-third of Canadian business owners plan to sell their businesses by 2030, but the majority do not have a clear succession plan.
Experienced immigrant investors may be the solution to this problem.
Conclusion: Canada must act.
By embracing innovation and diversifying the types of immigrant entrepreneurs, Canada can rebuild a stronger startup ecosystem and lead economic growth with new ideas and energy.
KeyApply and Ontario Startup Studio: Practical Solutions for Emerging Trends
Understanding the profound changes to the Start-Up Visa program, KeyApply and Ontario Startup Studio (OSS) have pioneered the development of a practical mentoring model:
- We not only provide Letters of Support, but also partner with you from the initial idea to the actual operation of your business.
- Develop projects that are truly vibrant and meet the increasingly stringent requirements of the Canadian Immigration Department.
- Comprehensive support throughout the PR approval process and business development after PR.
We believe that success doesn't come from having a Letter of Loss (LOS), but from the genuine value of the project that needs to be developed.
📩 Contact our Canada or Vietnam office.
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Part 1: The Truth About Letters of Support (LOS) - Don't think that having an LOS means you're safe.
"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."
