A loophole in Canada's Start-Up Visa program created a path for fraud and abuse. “Consultants” brought in thousands of unqualified people to the country and pocketed millions of dollars.
The program is being reformed but with U.S. immigration in chaos, Canada can't afford to wait. Top founders are looking for a new home, now is our opportunity to welcome them with a bold program.
Canada should reform the program by assessing based on capital from real investors, processing applications in 6 weeks, and eliminating the loophole.
- ## Summary
Top entrepreneurs are arguably the most important resource for building new businesses, developing new technology and growing the economy. These entrepreneurs are globally mobile and countries compete to attract and retain the best. Historically, Canada has been effective in this competition welcoming entrepreneurs from around the world and creating specific visa pathways to come work in the country.
One of these programs was the specialist Start-Up Visa (SUV) created in 2013 to attract top talent — applicants were approved based on support by designated venture capital funds, angel investor groups, or acceptance into business incubator programs.1
Over time though it became clear that the last of these streams, the incubator endorsement, created a loophole in the immigration system. Underqualified entrepreneurs could use second-rate, low quality, or fraudulent incubators to fast track PR.
The scale of this fraud was significant. “Consultants” regularly charged thousands to help people avoid the appropriate scrutiny. One fraudster scammed four families out of over a million dollars2. One case even alleges that a founder paid an “incubator” over $300,000 to build an Uber-like app for Southeast Asian daycare providers.2 These scams broke the system. Today, current SUV applications are faced with a 10 year processing wait time, and the program is closed for new applications. If Canada wants to stay competitive it must reverse this situation.
In 2026, the Canadian government announced they would be re-structuring the program. This is an opportunity to once again become top of mind for the best entrepreneurs in the world. Here is what they should do: refocus the SUV on quality by privileging credible investment-backed cases, eliminate the pure incubator pathway, and accelerate processing.
Narrative
A Program Built for Success
In 2013, Canada launched the Start-Up Visa program on a trial basis with a smart idea: let professional investors decide which entrepreneurs deserve to come to Canada. If a venture capital fund was willing to invest at least $200,000 in a founder’s company, or an angel investor group put in $75,000, that was proof the entrepreneur had real potential4 . The investor had “skin in the game” and they’d lose money if they backed the wrong person.
This model worked. Professional investors don’t write cheques to people who can’t build businesses. By relying on their investing decisions Canada could ensure quality control for the program. However, the program also included a business incubator stream in which no investment was required.
Where It Went Wrong
This incubator pathway created a loophole, exploited by immigration consultants who partnered with these incubators to process high volumes of applications from people who had no real chance of building successful companies. “Consultants” regularly charged thousands to help people avoid the appropriate scrutiny. One fraudster scammed four families out of over a million dollars. One case even alleges that a founder paid an “incubator” over $300,000 to build an Uber-like app for Southeast Asian daycare providers5.
By August of 2025 processing times hit 52 months,6 today it is 10 years,7 and the program is now closed to new applications.
The Opportunity Right Now
This is happening at the same time as the Trump administration has made the U.S. less welcoming to immigrant entrepreneurs. Talented leaders are looking for alternatives and Canada has a once-in-a-generation chance to become the top destination for global entrepreneurial talent.
What “Getting It Right” Looks Like
There are many examples across the world of what a successful program could look like. In Denmark startup visa applications are processed in 6 weeks. An expert panel reviews business plans and delivers decisions within that timeframe.8 The program is fast, predictable, and respects entrepreneurs’ time.
Canada should aim higher. The federal government should build a program that combines Denmark’s speed with Canada’s investment-backed stream.
Existing Solutions
Denmark’s Start-Up Visa processes applications in 6 weeks through an expert panel. It proves that fast processing is achievable when a government commits to it.
The UK Innovator Founder Visa requires endorsement from approved bodies with demonstrated track records. It shows the value of rigorous verification of endorsing organizations.
What Must Be Done
The federal government should rebuild the Start-Up Visa around three pillars: qualified investment, fast processing, and fraud prevention. To deal with the extensive backlog, the government should reject anyone who applied through the incubator stream and encourage all of the investment-based applicants to re-submit applications through the proposed renewed program.
Focus on the Investor-Backed Model
The new program should require minimum investments of $200,000 CAD from venture capital funds or $75,000 CAD from angel investor groups; the same thresholds from the original 2013 design, without the incubator stream. Based on the Denmark model, these investor groups and VC funds would be vetted by an expert panel made up by entrepreneurs and business specialists. They would approve the investors who have enough capital to support the program, ensuring quality and simplifying the process. With these guarantees the program can return to operating without a cap. Any entrepreneur that meets the criteria can come work in the country.
Guarantee 6-Week Processing
Canada should match Denmark’s 6-week processing guarantee. This requires a quick and effective process. If a company receives the money from a vetted investor and passes basic immigration security checks they are automatically approved, simplifying the process and removing endless re-litigation by IRCC. By relying on investor due diligence the system can be safe, effective, and efficient.
To streamline the process, vetted investors should have access to a portal to record their investment, describe the team receiving it, and immediately receive a certification number to give to the entrepreneur. Entrepreneurs should then be able to complete the application in a couple of hours through a simple online form, selecting the designated organization via a dropdown and entering their certification number along with team details – effectively eliminating the letter of support. The application requirements should also be significantly simplified. For example, sections 5, 7, and 9 of the IMM0008 Schedule 13 immigration form could be removed, as investor vetting could be relied on to ensure that any company receiving investment is sound.
Combat Consultant Fraud
The incubator stream must be banned unless it meets the investment threshold. Fraudulent applications should result in permanent bans from Canadian immigration programs.
The government should publish a list of all approved investors and incubators along with their track records: how many entrepreneurs they’ve supported that have come to Canada and, how many are still in the country. StatCan should also track how many jobs those companies created, and how much revenue they generated. This will provide Canadians with clear transparency into the effectiveness of the program.
Remove the Backlog
To clear the existing backlog, IRCC should reject all pending applications submitted through the incubator stream without qualifying investment. These applicants would be free to reapply if they secure backing from a vetted investor. Applicants who entered through the venture capital or angel investor streams should receive expedited review under the reformed criteria—if their investment still meets the threshold and their investor passes the expert panel’s vetting, their application moves forward. This clears the queue while preserving legitimate cases.
Common Questions
Won’t higher investment requirements exclude talented founders who can’t raise capital?
Yes. A truly promising entrepreneur should be able to raise $75,000 from angel investors if their ideas have merit. This threshold existed in the original 2013 program and successfully attracted quality applicants, filtering out applicants who have no realistic chance of building a business.
Can Canada really process applications in 6 weeks?
Denmark does it today. The key is a system that requires minimal processing. By using an expert panel up front to identify top investors the system can then rely on those investors due diligence to streamline the processes.
Won’t stricter requirements just create more delays?
The current backlog of 42,200 applications9 and 10+ year wait times resulted from letting unqualified applications flood the system. By requiring real capital commitments upfront, we filter out weak applications before they enter the queue. Fewer, stronger applications mean faster decisions for genuine entrepreneurs.
Conclusion
Canada’s Start-Up Visa was a good idea undermined by a bad loophole. The incubator pathway without investment requirements let immigration consultants flood the system with weak applications, destroying the program’s credibility and creating years-long backlogs.
In 2026 with the re-structuring of the program, we have an opportunity to bring any talented, proven entrepreneur who wants to build their business in Canada to the country. The SUV must be focused on investment based applications, provide an expert panel of business specialists to vet investors and to simplify processing times reducing it to 6 weeks, and crack down on fraud by banning the incubator stream. With the U.S. pushing immigrant entrepreneurs away, and global talent looking for a new home Canada has a rare opportunity to become the world’s top destination for founder talent.
