Larsen was born in Nakusp, British Columbia, but grew up in Vernon, British Columbia. He played junior ice hockey for the Swift Current Broncos where he attracted NHL scouts' attention. Larsen was drafted in round 3, 53rd overall by the Ottawa Senators in the 1995 NHL Entry Draft. His rights were traded to the Colorado Avalanche in 1996. He was not signed by the Avalanche by 1997 NHL Entry Draft day and subsequently re-entered the draft and was drafted 87th overall by the Avalanche.