So you can only get the visa if you have VC funding? How are you supposed to get started then? If your business isn't already operating in a country, how are you supposed to raise money from investors there?
When you apply to YC as a foreigner, you undertake the program during the three-month stay a visitor/tourist visa provides you. Then your company gets invested in, and your company, now capitalized, can legally immigrate you. Quite often, you have to go back home while things are set up, and then you're allowed back into the US when the paperwork goes through (may take months/years, during which you run the [US-based] company from abroad.)
I imagine the Canadian VC programs this affects will be similar; interestingly, the Canadian maximum-tourist-visit period is six months, so it gives you a bit longer to work things out.
Technically it's illegal to participate in YC or any other accelerator on a tourist visa. You can do it, but you basically have to lie at the border. I know this is the case in the US and UK, possibly Canada as well. Unable to find the stories ATM, but I know I've seen a couple cases where YC founders were detained and then turned away for getting called out on falsified tourism claims at US border control. Seems like if they are going to start this kind of visa, they need a case that covers the earlier stage as well.
Don't even get me started on the double taxation you face if your business is successful as a foreign national.
