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Federal Investor programme – Immigrant Investor Venture Capital Pilot Program
Federal Immigrant Investor and Entrepreneurs programmes of Canada were terminated on 19 June 2014, following a decision made by the Government of Canada.
On 16 December 2014, Citizenship and Immigration Minister, Chris Alexander, announced that Canada would unveil its Immigrant Investor Venture Capital Pilot Programme (the "IIVC") at the end of January 2015. CIC will accept applications from May 25 to December 30, 2015, and will process the first 60 complete applications. CIC will also accept up to 60 additional applications that will be placed on a waiting list.
Under this programme, each immigrant investor will provide CA$2 million (fully at risk) for the Immigrant Investor Venture Capital Fund. This fund will invest in innovative Canadian start-ups with high growth potential, for the benefit of Canada. The fund will be managed by BDC Capital, the investment arm of the Business Development Bank of Canada, and by participating fund managers that were previously chosen to manage Government of Canada investments under the Venture Capital Action Plan.
As with any venture capital investment, immigrant investors could receive proceeds over time or at the end of the investment term. Proceeds will depend on the fund's performance and will be based on its gains or losses, including expenses and fees incurred to manage it. However, this would be an at-risk investment. This means that there is no guarantee of a return and it is possible that an applicant could lose some or all of his/her investment.
In order to apply under this programme, a foreign national must have a personal net worth of at least CA$10 million and enter into an agreement with CIC committing a sum of CA$2 million to the IIVC Fund for approximately 15 years.
To find out more about this programme and assess your eligibilitys, please contact us today.