Section 98.05 — Immigration and Refugee Protection Regulations: Minimum investment

The Minister must establish the minimum total amount that the designated entities involved in the commitment must invest by buying shares or other forms of equity in the applicant’s business. The Minister may establish different minimum investment amounts based on whether the commitment was made by a business incubator, an angel investor group or a venture capital fund and, for commitments involving more than one type of entity, may specify different minimum investment amounts for commitments involving different combinations of entity types. The Minister must establish the minimum investment amount on the basis of the following factors: the number or projected number of start-up business class applicants and designated entities; the proportion per year of start-up business class applications approved, withdrawn or refused, as well as the grounds for refusal; the amount of investment received per year by start-up business class applicants from designated entities as part of a commitment; the number, type and industry sector of businesses started in Canada by approved start-up business class applicants per year and the average investment needs of start-up businesses of those types in those industry sectors; the average amount of investment and number of investments made in start-up companies in Canada per year; the level of investment usually required for a business started in Canada by a member of the start-up business class to be successful and for the member of the class to become economically established in Canada; and industry standards and best practices, as determined in consultation with organizations referred to in section 98.02 , designated entities or other relevant stakeholders. The Minister must publish the amounts established under subsection (1) on the Department’s website.