Well, I suppose this is a two way street. Hopefully something like this would kick-start Canadian VC funding, as they'll have a lot of very qualified international applicants knocking down their doors.

You would think it would be that simple, but you really need to look at it from the investor's point of view: What is my ROI if invest my money this way instead of that way? More unattractive investments won't help the tech startup community grow.

My suspicion[1] is that the thing that will really fix this is changing the way that investors are taxed on their capital gains and losses.

[1] Been a while since I lived in Canada, but IIRC capital gains and losses are not taxed like they are in the US.

That's not correct. Interest is taxed progressively like any other income, dividends are somewhat taxed according to a complex formula, and 50% of your capital gains are taxed at the applicable marginal tax rate depending on your income.

"50% of your capital gains are taxed"

True, but that is an exemption that gets used up. There is a $750,000 lifetime capital gains exemption. Which most people don't hit, but a successful founder could.

My guess is that's part of the purpose, to use the visas as a carrot to improve deal flow to Canadian angels/VCs. Could also be that they think companies funded by Canadian investors will be less likely to jump ship to the U.S. later, versus if they were funded by a Valley-based firm.

(As for why the investors have to be from an approved list? Probably to avoid sham "angel investors" fake-funding their acquaintances, or outright selling visas.)

> "(As for why the investors have to be from an approved list? Probably to avoid sham "angel investors" fake-funding their acquaintances, or outright selling visas."

This is a valid concern, though I'm worried it will swing the pendulum in the other direction also - that it basically gives non-regulated, non-governmental, non-accountable entities the ability to wield immigration as a stick.

That or allow an existing cabal of VCs to lock out competing, upstart VCs.

I bet there will be more now.

If you are looking for funding in canada, Fundica.com lists grants, loans, equity sources of financing, based on industry and location etc.