The Canadian government has announced its new Immigrant Investor Venture Capital (IIVC) pilot program, which is intended to attract experienced business immigrants to Canada. The program, which will begin accepting applications in late January 2015, targets approximately 50 immigrant investors who have a net worth of $10 million and can make a commitment of $2 million for a period of 15 years. Commitments will capitalize an IIVC fund vehicle, which will invest in Canadian innovative startups with high growth potential. The IIVC fund is expected to raise at least $100 million.
Promoting Job Creation and Economic Growth – Government unveils new Immigrant Investor Venture Capital Pilot Program
VANCOUVER, Dec. 16, 2014 /CNW/ – Today, Citizenship and Immigration Minister Chris Alexander announced that Canada will unveil a pilot program in January 2015 to attract experienced business immigrants who can actively invest in the Canadian economy, stimulating innovation, economic growth and job creation.
The new Immigrant Investor Venture Capital Pilot Program is part of a series of transformational changes that build on the Government’s commitment to build a fast and flexible economic immigration system.
In addition to making an investment of $2 million for a period of 15 years and having a net worth of $10 million, immigrant investors will be required to meet certain program eligibility criteria related to language and education, and have proven business or investment experience. This will ensure that immigrant investors will have a strong impact on the Canadian economy, and that those admitted for permanent residence will be well prepared to integrate into the Canadian business landscape and society.
This new pilot program will begin accepting applications in late January 2015 and will provide a pathway to permanent residence for approximately 50 immigrant investors and their families.
The creation of the Immigrant Investor Venture Capital Pilot Program fulfills the Government of Canada’s commitment in Economic Action Plan 2014 to create a more focused and effective pilot program that will ensure that immigrants who come to Canada deliver meaningful benefits to our economy.
•Immigrant investor programs are currently in place in more than 30 countries worldwide.
•The Government of Canada ended the previous Immigrant Investor Program and the Entrepreneur Program as neither program was determined to have contributed to Canada’s economic growth. Research indicated that immigrant investors under the previous programs were less likely than other immigrants to stay in Canada over the medium to long term.
•By requiring a non-guaranteed investment of $2 million and including more selection criteria for skills and abilities, the Immigrant Investor Venture Capital Pilot Program will test a new approach to immigrant investor programming in Canada.
•Investments into the Immigrant Investor Venture Capital fund will be used to seed innovative Canadian start-ups with high growth potential.
•Immigrant investors who are selected will be required to obtain a due diligence report from a designated service provider in order to prove that their net worth of at least $10 million has been obtained from lawful, profit-making business activities.
“Our Government is focused on building an immigration system that meets Canada’s economic and labour market needs. Through the launch of this pilot program, we are attracting investors who can make a significant investment and who have the education and proven business or investment experience necessary to achieve success in Canada. As we move forward, our Government will continue to ensure that our economic immigration programs provide a direct benefit to Canada and contribute to long-term prosperity and economic growth.”
Chris Alexander, Canada’s Citizenship and Immigration Minister
Our Government is working to attract experienced business leaders to Canada while leveraging their business expertise and personal investments. This new pilot program will help build a stronger venture capital environment in Canada and ensure that immigrant investor capital can have a greater long-term impact on our economy.”
James Moore, Industry Minister
Backgrounder – The new Immigrant Investor Venture Capital Pilot Program
News Release – Building a Fast and Flexible Immigration System
Backgrounder – Terminating the Federal Immigrant Investor and Entrepreneur Programs
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Building a stronger Canada: Citizenship and Immigration Canada (CIC) strengthens Canada’s economic, social and cultural prosperity, helping ensure Canadian safety and security while managing one of the largest and most generous immigration programs in the world.
SOURCE Citizenship and Immigration Canada
For further information: Kevin Menard, Minister’s Office, Citizenship and Immigration Canada, 613-954-1064; Media Relations: Communications Branch, Citizenship and Immigration Canada, 613-952-1650, [email protected]
Photo courtesy of Shutterstock
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