Startup visa success rate?

[gamehero]

I read an article today from 2016 suggesting the startup visa program had 2750 application but only approved 16. Does anyone have the figures for 2018 or 2019?

I am in talk with a few sponsors to move my company to Canada and am close to signing a contract with one of them. I became a little concerned after reading this article for such a low rate of approval.

Could someone please shed light on this?

 

[Mauchan]

I read an article today from 2016 suggesting the startup visa program had 2750 application but only approved 16. Does anyone have the figures for 2018 or 2019?

That article is incorrect or your interpretation is wrong. The SUV acceptance rate was 80% for the 111 applications received between 2014-2016. The recent years should have a similar success rate.

The 2750 number was the annual SUV quota during the pilot stage and not the count of completed applications.

 

[gamehero]

That article is incorrect or your interpretation is wrong. The SUV acceptance rate was 80% for the 111 applications received between 2014-2016. The recent years should have a similar success rate.

The 2750 number was the annual SUV quota during the pilot stage and not the count of completed applications.

Thank you. This is a big relief.

 

[mohamedgougam]

Thank you. This is a big relief.

Hello Gamehero,

would you mind sharing your experience on that? I am a co-founder of a start-up in Dubai, we have a product and full-time employees.
Any tips on what is the best way to on with this, I have communicated with few incubators and they ask either for an annual revenue or a high fees.

Any pieces of advice?

Thanks in advance.

M. G.

 

[soheilhs]

Thank you. This is a big relief.

As of June 2018 ,

total application application received by IRCC 448
APPROVED 48
REFUSED 50 = > this simply shows refusal rate is more than approval in 2018. it could be even worst in 2019 as many immigration firms are asking for money and dealing with incubators to issue a Letter of Support which is in contrast with the nature of initial startup program. So, just heads up

 

[Matt173]

Can't agree more, what lawyers are promising to do regarding help to obtain a letter of support from an incubator is borderline illegal but definitely highly unethical and immoral. Either those lawyers make empty promises and lie about providing any additional value-add for the many tens of thousands they charge for this "service" or they, in fact, collude with some unethical incubators to obtain a letter of recommendation when in fact without such lawyer the letter would not have been issued. It just sounds very fishy and strange to me. And yes, its totally in contradiction with the intent andd nature of a startup program. In another thread I also voiced my worries that many incubators seem to look for already revenue-generating businesses. That is not a startup nor has anything to do with building a business. It just means a low-risk entry to partake in the labor and fruits someone has already put in and invested. The service some of those incubators advertise to offer is outright laughable and that some incubators force a potential applicant into a costly contract with their legal "consultant" to handle all the legal paperwork is outright shocking. It screams conflict of interest, to say the least. Clearly CIC designated the inclusion of incubators in this visa process to fulfill the function of vetting a potential business. As such they should not even give the hint at issuing a letter of recommendation in exchange for signing up for a costly legal contract.

As of June 2018 ,

total application application received by IRCC 448
APPROVED 48
REFUSED 50 = > this simply shows refusal rate is more than approval in 2018. it could be even worst in 2019 as many immigration firms are asking for money and dealing with incubators to issue a Letter of Support which is in contrast with the nature of initial startup program. So, just heads up

 

[shirdel87]

Hi there,

We have been accepted by an Angel. Does anybody here have a similar experience?
Although an incubator has accepted us, we intend to proceed with the Angel. The problem is that the Angel has demanded a weird amount of fee ( 350K including operational costs of new Candian company and paperwork such as term sheet, shareholder agreements, commitment certificate, and so forth. Also, there is a potential VC for us. There are three options, but we have a grave concern about the future fees they will likely impose on us.

 

[Mauchan]

The problem is that the Angel has demanded a weird amount of fee ( 350K

$ 350K? That's definitely not an "angel" you're dealing with. They are supposed to give YOU money, not take it from you.

Cost of setting up a company in Canada is a few hundred dollars. Any accountant will do it for you. Formats for shareholder agreements, term sheets, etc are easily available for free and you just have to add a few terms based on the specific deal.

 

[shirdel87]

$ 350K? That's definitely not an "angel" you're dealing with. They are supposed to give YOU money, not take it from you.

The cost of setting up a company in Canada is a few hundred dollars. Any accountant will do it for you. Formats for shareholder agreements, term sheets, etc are easily available for free and you just have to add a few terms based on the specific deal.

She says that investor thinks like this: "if you want to come to Canada you should put money into the new company in an Escrow account in order to prove yourself. I will invest in a company that the founders do not have enough money for new company operational costs".
If you have any experience with the Angel SUV things, please share it here. We are so so hesitant to progress with this angel. We can not reject or accept it easily.

 

[Mauchan]

This does not sound right. They seem like bad actors who are taking undue advantage of the SUV program, and I wouldn't touch them with a barge pole. Why would the entrepreneur have to put $350,000 in escrow to 'prove' something?

I'm assuming that you already have paying customers for your business and have the potential to grow 10 X in the next few years? That should be a solid enough reason for investing.

A reasonable VC or Angel would look at your product and business plan, ask the right questions, and then decide on what the next steps are going to be. They are taking a share of your business, and they might put in a few favorable terms like warrants and preferences.

But $350K? Caveat emptor.

 

[shirdel87]

350K total :
150K escrow account, 200k paperwork and due diligence procesa and some legal agreements

 

[Mauchan]

150K escrow account, 200k paperwork

Same difference. Like I said, buyer beware. If I were you, I would give this 'arrangement' a hard pass.

Up to you.

 

[shirdel87]

Thanks for the advice. Have you ever heard that someone has received his/her PR through Angel?

 

[Ananddoyen]

Hi, everyone

I found this conversation interested as I am also related to the same topic as well.
I am a Founder of early stage start-up in India. And looking to expand in Canada in early stage under startup visa program as market opportunity is good there as well.

Found some Indian as well as Canadian firms who are connecting us with incubator and angel networks in Canada
And charging CAD 5k for the whole process including pre landing incubation fees.
Is it good option to choose.
As I am a genuine founder of start-up and a young entrepreneur but but confused in this as blockchain technology implementation is difficult with cryptocurreny in India that's why I found potentiality in Canadian market.

Hoping for good response
Thank everyone
Need your valuable suggestions

 

[Mauchan]

ever heard that someone has received his/her PR through Angel?

No. Angels are the least likely group to support SUV entrepreneurs as they are investing their own money. Unless the start-up company in question has strong referrals, decent revenue, a track record, or a combination of these factors. You'll find better luck with VCs and incubators.