Can American investors invest into a Canadian company?

Say an investment bank was willing to put 2-5 million $$ into a Canadian startup company, would the Canadian HAVE to relocate or would they leave it up to the Canadian whether they wanted to relocate or not? They wouldn't try to make the Canadian move to the US for better business? (ex. a startup game company in Vancouver wanting an investment from a US bank)

Also, what are the laws regarding the US investing into Canada? Is it risky for them? and what are the laws surrounding the IRS Foreign Tax Credit, and Passive Foreign Income Company rules?

Thanks to anyone who answers, if you have any knowledge at all please feel free, I can't find the exact information I want anywhere so this would help me a great deal. :)

Cheers!