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Startup Visa - Exorbitant Fees to Join Incubator Program?

Discussion in 'Business Immigration' started by PsykomantaBrain, Apr 6, 2016.

  1. Hello.

    I'm applying for the startup visa program. My current immigration representatives found I was eligible, and referred me to this incubator/accelerator company in BC.

    I had a phone interview with them, in which I explained my plans for setting up my own company and moving to live in Vancouver, and they accepted my proposal. They then sent me the expected Term Sheet and Escrow Agreement to start the SUV process.

    In their terms, however, the company is asking for an (unmentioned in the interview) fee of gigantic proportions (I'd rather not disclose the actual value, but think hundreds of thousands CAD).

    According to the Term Sheet, this fee is not meant to become any sort of launch capital for the new company, it just seems to be destined to the incubator itself. (Or, as my representatives put it, destined to essentially 'buy' my way into permanent residency)

    Is this normal? I've searched far and wide, and couldn't find anything about any similar situation. Am I being extorted?

    (I also asked my reps about finding other companies to approach, they replied, in few words, that this would be the same with any other incubator. I don't know what to believe anymore here.)

    Thanks in advance for any information.
     
  2. I haven't seen any other incubator charging fees like this. Incubators will typically take a piece of equity in return for the services, but never cash fees up front. Doing so sort of defeats the purpose of joining an incubator, as if you had hundreds of thousands of dollars to invest, you wouldn't need the incubator in the first place! I would look around and speak to some others before committing.
     
  3. Dear torontosm, Do you know or can Recommend Incubators companies that are trustful? It seems the one mentioned in this post could be a scam. I will like to open a business in Canada too, but I don't have the minimum idea where to get a incubator or angel investor, etc.

    Kind Regards,
     
  4. Designated organizations
     
  5. The easiest way would be to join an incubator, as their standards are the lowest in terms of new "investments". This will also serve to provide you with a warm landing spot in Canada and a base from which you can start developing relationships with VC's to grow your business. InCubes and Extreme Labs are both good organizations that support international companies through the startup visa program.
     
  6. Thank you very much I will try to contact this 2 organizations you recommend me.

    Regards,
     
  7. They should not ask for so much amount upfront! Something is not correct! Please explore more.
     
  8. What's you update on your plan??
     
  9. What kind of business ideas they are looking for these days. Whats the processing time for this programe.
     
  10. Essentially all incubators work on the same basis.
    Startup visa is genuinely for large companies or folks who are serious into establishing business.
    For individuals it is buying your way into pr at the cost of 300 to 350k.
    Moreover the amount will be deposited into escrow and the company will use amount to establish your business at least the register part etc and only then apply to cic where a peer check will take place. If your are not approved, you will get half of your money back if you are lucky
    Few people have been granted and many waiting for pr.
    To me it is crazy to spend 350k for pr.
    Cheers
     
  11. There is no deposit required for any incubator, and you can not buy your PR as you assert. Rather, you need viable business plan or idea, and you need to attract funding or financing from a VC, an angel group or be selected for an incubator.
     
  12. Do you have any valid backing for what you are saying? You are pretty much discouraging the avenue.
     
  13. I think it depends from on incubator. I recently applied for startup visa through an incubator and got accepted and they did not charged me a single penny and we are not a big company.
     
  14. Hi, do you mind giving a little more details about it? like which incubator did you approach and accepted, time they took to respond, and what are their expectations?

    I'm a single entrepreneur working and running a SaaS application and have plans to build mobile apps for the clients to use. There isn't much earning from my application but has potential once I get those mobile apps done. I wanted to approach them but waiting for my application to get a little more traffic and income.
     
  15. Hi Shritigr, can you share the name of the Incubator?
     

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