Incubators asking for large amount of money to get letter of support.

[Jiji7]

Hi All,
My US based startup got accepted in a business incubators which is among the listed designated organization by CIC for the startup visa program.
However they asked for 20k CAD as an administration fee to issue the support letter. During our discussions and the whole application process this fee wasnt brought up even though we asked them explicitly what would be the cost.


Is this the normal way incubators work in Canada ? It seems like it defeats the whole purpose of the SVP as startups have limited funds to begin with. It looks like they are selling the visa.

I’m considering other options right now beside SVP given that I need to have a temporary work permit as soon as possible in Canada. Any pointers on where to look?
Could we incorporate the company in canada and make it a subsidiary of the US company then just hire ourselves?

Any help would be appreciated!

 

[soheilhs]

Hi All,
My US based startup got accepted in a business incubators which is among the listed designated organization by CIC for the startup visa program.
However they asked for 20k CAD as an administration fee to issue the support letter. During our discussions and the whole application process this fee wasnt brought up even though we asked them explicitly what would be the cost.


Is this the normal way incubators work in Canada ? It seems like it defeats the whole purpose of the SVP as startups have limited funds to begin with. It looks like they are selling the visa!

Hello , No one sell the visa. if they are asking money exactly in regard with letter of support issuance, there would be a high chance of refusal as it may go under a peer review and as far as I know, IRCC has prohibited all business incubator to ask money for the letter.

However , they may told you that you have to participate into an incubator program which costs you $20k . this is adifferent story .

 

[scylla]

Hi All,
My US based startup got accepted in a business incubators which is among the listed designated organization by CIC for the startup visa program.
However they asked for 20k CAD as an administration fee to issue the support letter. During our discussions and the whole application process this fee wasnt brought up even though we asked them explicitly what would be the cost.


Is this the normal way incubators work in Canada ? It seems like it defeats the whole purpose of the SVP as startups have limited funds to begin with. It looks like they are selling the visa.

I’m considering other options right now beside SVP given that I need to have a temporary work permit as soon as possible in Canada. Any pointers on where to look?
Could we incorporate the company in canada and make it a subsidiary of the US company then just hire ourselves?

Any help would be appreciated!

It appears to be quite standard for incubators to demand that the start up provide funds so that both parties are investing/taking on risk.

To incorporate in Canada, you typically need to have a partner who is either a citizen or pr. Probably best to check with a business lawyer in Canada. If you are able to incorporate - no guarantee unfortunately that you’ll be able to get work permits.

 

[kingcoon]

Hi All,
My US based startup got accepted in a business incubators which is among the listed designated organization by CIC for the startup visa program.
However they asked for 20k CAD as an administration fee to issue the support letter. During our discussions and the whole application process this fee wasnt brought up even though we asked them explicitly what would be the cost.


Is this the normal way incubators work in Canada ? It seems like it defeats the whole purpose of the SVP as startups have limited funds to begin with. It looks like they are selling the visa.

I’m considering other options right now beside SVP given that I need to have a temporary work permit as soon as possible in Canada. Any pointers on where to look?
Could we incorporate the company in canada and make it a subsidiary of the US company then just hire ourselves?

Any help would be appreciated!

My incubator asked for just under 10k to be accepted into the program and it covers 1year office space and also some of the courses that the incubator offers and some other perks. This was disclosed to me early and I will pay the full amount to the incubator when I get my permanent residence.

I suggest asking them if they need payment now regardless of the outcome with the IRCC or after you get your PR. I would send them any payment before you get the PR you have a high risk of not getting your money back since usually, those payments are nonrefundable.

 

[oncoders]

Hi there,could you please share your incubator’s details . You could send in a private message even if you prefer.

Thanks

My incubator asked for just under 10k to be accepted into the program and it covers 1year office space and also some of the courses that the incubator offers and some other perks. This was disclosed to me early and I will pay the full amount to the incubator when I get my permanent residence.

I suggest asking them if they need payment now regardless of the outcome with the IRCC or after you get your PR. I would send them any payment before you get the PR you have a high risk of not getting your money back since usually, those payments are nonrefundable.

 

[kingcoon]

Hi there,could you please share your incubator’s details . You could send in a private message even if you prefer.

Thanks

Let me know that you want to know exactly, there is not much else about the payment with the incubator. I signed the contract that said I have to pay when I get my PR. I actually paid them after 3 weeks of being there they did not rush me with the payment at all.

 

[k.h.p.]

The OP is likely asking for the name of your incubator.

 

[oncoders]

Thanks Kingcoon , I wanted to know which incubator did you use ?

Thanks again

Let me know that you want to know exactly, there is not much else about the payment with the incubator. I signed the contract that said I have to pay when I get my PR. I actually paid them after 3 weeks of being there they did not rush me with the payment at all.

 

[oncoders]

The OP is likely asking for the name of your incubator.

Yes , thank you

 

[Mehdiahmadi]

Thanks Kingcoon , I wanted to know which incubator did you use ?

Thanks again

Hi , would you please share the name of your incubator yo me?

 

[bun2019]

My incubator asked for just under 10k to be accepted into the program and it covers 1year office space and also some of the courses that the incubator offers and some other perks. This was disclosed to me early and I will pay the full amount to the incubator when I get my permanent residence.

I suggest asking them if they need payment now regardless of the outcome with the IRCC or after you get your PR. I would send them any payment before you get the PR you have a high risk of not getting your money back since usually, those payments are nonrefundable.

Hi Kingcoom,
thanks for your sharing. have u for the letter of support? PR now?
can I have the name of the incubator, pls.

thanks in advance

 

[kingcoon]

Hi Kingcoom,
thanks for your sharing. have u for the letter of support? PR now?
can I have the name of the incubator, pls.

thanks in advance

Hi , would you please share the name of your incubator yo me?

Thanks Kingcoon , I wanted to know which incubator did you use ?

Thanks again

Hi everyone,

Sorry for the late reply. Every incubator has its own requirements and programs so what works for me might not work for you. My incubator is The Inc. from Calgary.

Thank you!

All the best

 

[rayamhs]

Hi everyone,
I was wondering how can I find an incubator? I've searched but I don't know where to start. Can anyone please help me?

 

[ali.shariati]

My incubator asked for just under 10k to be accepted into the program and it covers 1year office space and also some of the courses that the incubator offers and some other perks. This was disclosed to me early and I will pay the full amount to the incubator when I get my permanent residence.

I suggest asking them if they need payment now regardless of the outcome with the IRCC or after you get your PR. I would send them any payment before you get the PR you have a high risk of not getting your money back since usually, those payments are nonrefundable.

Hi @kingcoon

Can you kindly share how did you exactly pitch your idea to investors? did u just fill out their online application? I tried to do it but the needed a lot of business scale information in detail which only lawyers and accountants and business developers have the answers. And some other also wanted a an established company, a CTO etc!!

 

[kingcoon]

Hi @kingcoon

Can you kindly share how did you exactly pitch your idea to investors? did u just fill out their online application? I tried to do it but the needed a lot of business scale information in detail which only lawyers and accountants and business developers have the answers. And some other also wanted a an established company, a CTO etc!!

Hi,

If you don't already have a business that is generating revenue and isn't growing 30% month over month it's almost impossible to raise money from angel investors.

You should try to get accepted into an incubation program, but if you only have just an idea and nothing else no incubator will accept you. You need to get the incubators excited about your business either with revenue or a team. If you don't have any of those things make it happened to find really good developers in your city try to get them involved in your business or just bootstrap everything yourself whatever you do make something that will excite the incubator to give you the letter of support.

I hope this helps and good luck with your business.

Thanks!