Canada’s Immigrant Investor Venture Capital (IIVC) Fund will invest in innovative Canadian start-ups with high growth potential, that will benefit the Canadian economy.
The creation of the IIVC fulfils Canada’s commitment to create a more focused and effective pilot program that will ensure that immigrants who come to Canada deliver meaningful benefits to its economy.
A few quick facts:
- Under the former Immigrant Investor Program (IIP), immigrant investors had to invest $800,000 in Canada’s economy in the form of a repayable loan, without meeting skills and abilities requirements of most of Canada’s economic immigration programs. Research indicated that immigrant investors under the previous program were less likely than other immigrants to stay in Canada over the medium to long term. Also, they contributed relatively little to the Canadian economy, earning very little income and paying very little tax.
- Citizenship and Immigration Canada (CIC) will accept up to a maximum of 500 applications received within the specified period and randomly draw applications until up to 60 complete applications are selected.
- At CIC’s request, these selected applicants will need to obtain a due diligence report from a designated service provider to examine and validate the source of their wealth.
The IIVC Fund will be managed by BDC Capital, the investment arm of the Business Development Bank of Canada and by participating fund managers.
“Our government is reforming business immigration programming to target more active investment in Canadian growth companies and more innovative entrepreneurs,” said Chris Alexander, Canada’s Citizenship and Immigration Minister. “This pilot program is designed to attract immigrant investors who will significantly benefit the Canadian economy and better integrate into our society, which will contribute to our long-term prosperity and economic growth.”
“This pilot program is an important step toward delivering on our government’s promise to build a stronger venture capital ecosystem in Canada,” said James Moore, Industry Minister. “A strategic source of capital is essential for our many growth firms in Canada to unlock their true potential.”