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This is one of the great mysteries of the 21st century, and one of the most common questions we get about the SUV program.
After processing Start-Up Visa cases for almost a decade and working with every type of stakeholder: designated organizations, business launchpad groups, other consultant and legal teams, we can tell you this:
The answer depends entirely on how much you're being charged.
What we have found is that, in most cases, there is in fact a complex web of intermediaries charging fees at nearly every level of the process, with surprisingly little of your investment actually going toward real business development.
Many investors hear "$200,000 investment" and assume it works like real estate or donation-based visas.
However, this is not the case. The Start-Up Visa Program is a structured entrepreneurial pathway with defined regulatory frameworks and associated legal, business and operational costs. Here's how it actually works:
If you're paying less than $100,000-$110,000 total (excluding government fees), here's how your money is most likely being used:
- 15-25% becomes margin for the overseas agency selling you the program.
- 50% goes to the designated organization to secure your Letter of Support.
- The balance covers immigration legal services and project management fees.
At this price point, you're typically dealing with non-priority designated organizations facing processing delays of over five years for permanent residence.
The Most concerning of all: virtually zero funds go to your actual startup business. You're joining as a "co-founder and investor" in name only.
For investments of CAD $190,000 to CAD $250,000, the allocation shifts slightly:
- Priority designated organizations receive 50% of funds,
- 25% goes to the actual startup business to demonstrate traction and hire Canadians
- The balance covers legal services and project management fees.
Processing times drop to roughly 3.5 years with priority designated organizations.
The breakdown reveals the sobering reality: even when you invest over CAD $190,000, most funds still do not flow into the business itself. Designated organizations are supposed to support innovation. In practice, many act as expensive gatekeepers. They collect large fees but offer minimal business involvement.
What most applicants don't realize is the fundamental contradiction in the program structure. To be endorsed by a designated organization, startups typically need real revenues and traction. But generating significant revenue usually requires substantial capital investment – capital that isn't provided through this fee structure.
Here's the industry's dirty secret: Angel Investors and Venture Capital firms rarely invest their own money in Start-up Visa businesses. The "committed capital" they promise comes from your pocket. If a VC or Angel Investor genuinely planned to invest, they'd target startups with proven revenue streams typically exceeding $1 million, uncommon in this program's ecosystem.
The program markets itself as supporting innovation and entrepreneurship, but the financial reality shows a different picture. Most funds support the immigration process rather than business development, explaining why many Start-up Visa businesses struggle to achieve meaningful scale or market impact.
For applicants paying significantly below CAD $190,000, the business receives essentially no capital injection. Your "investment" covers processing fees, intermediary margins, and designated organization costs, leaving the startup under-capitalized and likely to fail.
The processing timeline disparity between priority and non-priority designated organizations creates a two-tier system. Priority access costs significantly more but offers faster processing, while budget options often result in multi-year delays and higher business failure rates due to inadequate funding.
Unlike other investment programs where funds flow to development projects or regulated investments, Canada's Start-up Visa operates as a complex fee-collection mechanism. The irony is that successful business development – the program's stated objective – requires precisely the capital that gets absorbed by intermediary fees.
In order to avoid ending up in these vicious cycles, it is imperative for anyone considering to apply to Canada’s Startup Visa program, investing and becoming a partner of an existing Startup, to ask these questions and request clarification before investing:
a) Paper trail of investment through the Canadian Startup businesses’ local bank account inside Canada
b) Tangible plan on how to gain customers and revenues in Canada and/or international markets
c) Possibility and tangible plan to hire Canadians in the near future
d) How real will the product be and possible to use or it’s just an MVP and ‘show’ for the IRCC?
e) Name of the designated organization which will be endorsing the startup: will it be a priority designated organization or one of the blacklisted endorsing bodies?
Also make sure to:
1) Verify the company you will sign with if they are legally licensed in Canada to offer immigration services and represent you with the IRCC
2) Verify past cases for Startup Visa program where the agency has successfully received Letters of Support, PR and work permit approvals for recent clients
3) Verify professional errors & omissions insurance for the legal representative who will handle your case for Canadian immigration
4) Make sure all services to be rendered by the consulting firm or your legal representative are clearly stated in the agreements you sign
1) Dealing with a sales persons who provide false promises such as shortened and unrealistic PR processing timelines
2) Not providing you detailed steps and legal agreements with licensed firms in Canada to represent you
3) The Startup business will only have a business plan, presentation and website – with no tangible plan to create jobs or have customers in North America
For years, the financial mechanisms behind the Start-Up Visa program have allowed many applicants to achieve Permanent Residency. But the structure has largely focused on servicing intermediaries, not funding real startups. Today, IRCC is increasingly cracking down, requiring genuine business activity and startup traction, as it should.
Canada’s Start-Up Visa is not a direct investment program. It’s an entrepreneurial immigration route that, when executed properly, can lead to both Permanent Residency and the launch of a real business in Canada.
At Ingwe Immigration, we’ve spent years navigating this complex space. We work to ensure that a meaningful portion of your investment is directed toward the business itself, not just toward paperwork or gatekeeper fees. Our clients are guided to work with real partners who support viable startups.
Ultimately, the final decision rests with you. Are you serious about launching a business in Canada? Are you ready to put in the effort to make it succeed?
If you’re looking for support that prioritizes transparency, real business outcomes, and long-term success:
