A new program aimed at fewer but richer immigrants has been launched by the federal government after scrapping the controversial Immigrant Investor Program (IPP) in 2014. The new investor pilot program starts this month, and will allow the Canadian government to give permanent resident status to around 50 high-net-worth immigrant investors and their families. The program aims to attract experienced millionaire investors who will contribute to economic growth.
Under the terms of the Immigrant Investor Venture Capital Pilot Program, each investor will be required to have a net worth of $10 million and make a non-guaranteed investment of $2 million over a period of 15 years. According to a government statement, these funds will be invested in innovative Canadian-based start-ups with high growth potential.
Along with post-secondary education credentials, candidates will be required to prove proficiency in either English or French and will also be required to obtain a due diligence report demonstrating that they obtained net worth of at least $10 million from lawful, profit-making business activities.
According to Chris Alexander, the Minister of Citizenship and Immigration, “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.”
Industry Minister James Moore said the pilot program is part of Canada’s efforts “to attract experienced business leaders to Canada while leveraging their business expertise and personal investments.”
From 2005 to 2012, approximately 37,000 investor immigrants arrived in British Columbia under the former Immigrant Investor Program.
Attorney Colin Singer Commentary:
The re-launched program confirms the Conservative Government’s dislike for a passive immigrant investor program. Insiders from Canada’s venture capital and private equity industry readily confirm that the business cycle to produce maximum returns for the majority of projects varies between 2-7 years. Placing a mandatory holding period of 15 years is unattractive from an investment standpoint and unmarketable in comparison to current programs in the global residence through investment industry.