Canada’s Startup Visa in 2025: Strategic Insights for International EntrepreneursPosted on July 8, 2025

In particular, starting in 2024, the evaluation criteria have become more systematized. More than ever, both the evaluation of the business plan and the assessment of investment potential carry significant weight. Founders can no longer rely solely on early-stage planning. Canada’s SUV requires applicants to be endorsed by either a venture capital fund, an accelerator, or a designated angel investor group. The expectations for each of these organizations have become more rigorous, especially with growing emphasis on business model maturity and market-entry strategies. For example, accelerators now expect MVP-level (Minimum Viable Product) development and clear IR positioning that demonstrates potential to attract investment and partnerships. For tech-based startups in particular, structure and roadmap completion are weighted more heavily. As a result, application approval is increasingly tied to not just pitch quality but to detailed market-entry and investment strategies.

From October 2024, SUV applicants can receive an open work permit valid for up to three years. This change allows founders and their teams to arrive in Canada earlier and settle into local networks before receiving permanent residency status. This is especially beneficial for entrepreneurs looking to scale in Canada’s core tech hubs like Toronto, Vancouver, and Montreal.

At the same time, application volume has surged, and IRCC has responded by tightening quotas. From 2024, the number of permanent residency spots allocated annually through designated organizations will be limited to 10,000, down from about 7,000–8,000 in recent years. This has led to increased selectivity, and applications that are weak or lack a full strategy are often rejected. A more comprehensive approach is required, covering applicant qualifications, networking capacity, IR planning, and policy alignment. Founders now also need to meet more stringent eligibility conditions. These include a minimum CLB 5 English proficiency level or higher, demonstration of at least 10% ownership equity, and financial viability through either proof of funds or business operation capital. Additionally, IRCC still requires documents like Letters of Support and Commitments Certificates from designated organizations. While some peer review processes have been streamlined, screening standards remain high.

Even after receiving a Letter of Support, the journey does not end with permanent residency. IRCC continues to assess whether the business is actively maintained in Canada. This means the company’s setup, revenue model, and operational structure must be viable. In recent years, industries like climate tech, digital health, and cybersecurity have been prioritized, making it essential to tailor applications to specific industry goals.

Ultimately, Canada’s Startup Visa is not just an immigration program but a gateway into North America's innovation ecosystem. Today’s applicants must look beyond the application form and carefully design business models that can scale sustainably in Canada. A deep understanding of evolving immigration frameworks, business structure expectations, and capital-based strategy design will be essential for long-term success.