Key Takeaways from a Recent Federal Court Decision on Canada's Start-Up Visa Program

For years, aspiring immigrant entrepreneurs have viewed the Letter of Support from a designated Canadian incubator, angel investor, or venture capital fund as the most crucial element for a successful Start-Up Visa (SUV) application. However, a recent Federal Court decision, 2025 FC 1087, sends a clear message: the game has changed. Immigration, Refugees and Citizenship Canada (IRCC) is digging deeper, and simply having a Letter of Support is not enough to guarantee approval. This case is a critical wake-up call, revealing that IRCC is entitled to, and will, conduct a holistic review to uncover the true purpose of a start-up venture.

Detailed Summary of the Case

The applicant sought to develop a specialized camera technology, termed the "jockey cam," intended for use in horse racing to offer viewers the perspective of the jockey during races. Even with backing from a recognized incubator, IRCC denied the application, asserting that the principal objective behind the proposed business was immigration-related rather than to genuinely establish a viable business contributing meaningfully to Canada’s economic landscape.

Key issues identified by IRCC included:

• Insufficient Technical Expertise: IRCC found the applicant lacked adequate technical education or relevant professional experience to feasibly develop and commercialize the proposed technology.

  
  

• Limited Business Prospects: The business venture exhibited minimal market potential, with prospective customers limited to a single, non-existent racecourse still pending construction, making the viability of the business highly uncertain.

  
  

• Ambiguity Regarding Intellectual Property Rights: The applicant declined to provide comprehensive details on intellectual property, claiming trade secret protection. However, this claim was not substantiated according to Canadian intellectual property laws, casting further doubts on the business's authenticity and long-term potential.

The Federal Court supported IRCC’s comprehensive and holistic review, emphasizing that obtaining a Letter of Support from a designated entity alone is insufficient to guarantee a successful immigration outcome.

Important Excerpts from the Decision

• "The Officer was simply taking a holistic view of the circumstances and considering the overall situation... leading them to conclude that the business was not legitimate, but rather simply a vehicle to secure immigration status for the Applicant."

  
  

• "It is not sufficient for an Applicant to blithely seize on any mention of... contextual factors mentioned by the Officer and then assert that this indicated that a new requirement or absolute threshold was being imposed."

  
  

• "The Officer’s essential assertion – that the overall circumstances... led to the conclusion that the business was merely a vehicle to claim status under the IRPA, which supports the conclusion that the Decision is justified, intelligible, and transparent."

  
  

• "Applicants must demonstrate clear, practical steps toward commercialization, credible market research, and strong potential for profitability."

Why is this Decision Important?

This landmark decision serves as a crucial reminder that obtaining endorsement from an incubator or investor under the Start-Up Visa Program is merely one step within a broader, more rigorous assessment by IRCC. The evaluation will delve deeply into the authenticity, practicality, and innovative nature of the proposed enterprise. IRCC will also assess the applicant's genuine intent to establish a thriving, innovative business capable of significantly benefiting the Canadian economy and innovation ecosystem.

Expanded Critical Guidance for Prospective Start-Up Visa Applicants

Applicants interested in the Start-Up Visa Program should seriously consider the following key elements in their preparations:

• Innovation and Viability: Beyond presenting a novel idea, applicants must clearly outline the innovation’s feasibility, provide solid evidence of detailed market research, and articulate a robust, realistic commercialization strategy that shows meaningful potential for sustained profitability.

  
  

• Intellectual Property (IP) Strategy: Clearly identified IP rights or a robust and detailed IP protection strategy must be documented and demonstrably aligned with Canadian IP protection standards. It is advisable to consult IP professionals to ensure all aspects of IP management are transparently addressed in the application.

  
  

• Relevant and Demonstrable Expertise: Your team must reflect credible, verifiable expertise that is directly relevant to your proposed business. If your team lacks certain key competencies, transparently document partnerships, collaborations, or employment contracts with individuals or entities possessing the necessary expertise.

  
  

• Concrete Business Opportunities: Applicants should present well-defined, tangible business prospects and market opportunities, accompanied by verifiable progress milestones, rather than speculative or uncertain future potential.

Explicit Warning for Prospective Applicants

This ruling provides several essential lessons for anyone considering the Start-Up Visa program:

• A Letter of Support is Just the Beginning: It gets your foot in the door, but it does not exempt your application from a thorough and detailed assessment by IRCC. The officer will conduct a "holistic review."

  
  

• Your Background Matters: You must be able to demonstrate that you have the relevant experience, education, or transferable skills to make your business a success. If you lack certain skills, you must show that you have a plan to hire people who do.

  
  

• Your Business Must be Viable: IRCC will scrutinize the legitimacy and potential of your business. This includes your business plan, market research, potential customers, and overall ability to become economically established in Canada.

  
  

• Be Transparent About Your Business: Refusing to provide details about your intellectual property or business progress will raise red flags. You must be prepared to substantiate your claims and comply with requests for information from the immigration officer.

We truly champion comprehensive, transparent, and strategic immigration planning. We guide prospective Start-Up Visa applicants through rigorous preparation to ensure compliance with IRCC’s stringent evaluation standards, substantially improving your prospects for success. Contact us to ensure your application accurately and compellingly meets IRCC’s rigorous scrutiny.

—o—

About the Author

I’m Ahmet Faruk Ocak, a Canadian immigration lawyer and the founder of Blacksy Immigration Law Firm 🌊. 

At Blacksy, we specialize in providing honest, straightforward, and tailored immigration solutions to individuals and businesses worldwide. Our brand promise is simple: no unnecessary fuss, no false hopes, and no empty promises—just realistic, reliable guidance to help you achieve your immigration goals.

Whether you’re expanding your business to Canada, transferring top talent, or planning your future here, we’re here to guide you with precision, transparency, and care.

Visit us at www.blacksyimmigration.com to learn more or to start your journey.