The main problem is that Canada doesn't have near enough active VC investors.
Hardly anywhere does, even Silicon Valley.
Having them be the sole gatekeepers will fall far short of what's possible.
Given it's only 2750 visas/yr, I like to think this is the Canadian government's version of an MVP that VCs and Canadian startup communities have lobbied hard for.
Maybe they'll find ways to expand or relax the qualifying restrictions in the future.
A trend that is certainly changing. Vancouver, for instance, has a growing and vibrant VC community, from which this very bill was initiated.