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Kanwal Dhaliwal, Business Officer, Duncan McNeill Centre for Innovation and Stuart Cullum; Director, novaNAIT, Edmonton

On The Idea: From the start, we thought they had a great idea. We all know that affordable housing is both a local and a global issue, and it concerns all levels of government and community. Innovequity has part of the solution for this problem.

Red Flags: Their largest risk right now is technical. They have a model of the device, but they don’t have a working prototype. They have a significant technical risk that they can’t address until they build and test the prototype.

Next Steps: They’ll have to monitor the development of the technology and make sure they are not going down rabbit trails. If they get a hiccup, they need to make sure they can modify it, that they can be nimble and react.

Cameron Schuler, Executive-in-Residence, TEC Edmonton and one of Innovequity’s management consultants

On The Idea: It has great potential. There is a lack of innovation and automation in the construction industry. Something like this may solve several problems: address the labour shortage and associated cost issues, quality control issues and apply economies of scale to construction. It’s a potentially revolutionary technology.

Red Flags: Adoption will be a challenge, because it is so new. The big question for adopters is, will this negatively affect my production? What happens if the machine breaks down? That’s people standing around doing nothing and a lot of profit out the door. They’re confident and I am confident that it will work. The question is, will it be fast enough, economical enough and reliable enough? They needed to round out their management team. These guys certainly have some life experience, but investors want to see guys who’ve been around the block a few times. The business plan sounded like marketing when you first read it and it needed more substance behind it and strong analytics.

Next Steps: They need corporate focus. This machine could be used in all types of environments, but they need to focus on doing one thing and doing it very well – creating a product and process that is as cookie cutter as you can make it, fine tuning the machinery, really understanding its strengths and weaknesses. Before you get into other areas, focus on something, do it well, make it profitable.

Paul Cataford, President and CEO, University Technologies International, Calgary

On The Idea: The basic proposition is that they can build it better, faster and cheaper than traditional construction. That’s compelling in today’s environment.

Red Flags: The intellectual property (IP) and regulatory details are light. Will the end product satisfy all building codes and approvals? How can IP protection be put into place? IP protection is a tactical tool. Investors need to know that the manufacturing process or end product cannot be easily replicated by another company. That’s a key selling point.

Next Steps: Proving the concept should be their priority. And they need to refine the business plan so it’s built around financeable events. The company is suddenly worth a lot more the day after they build a working prototype because the market knows more about it.

Hector MacKay-Dunn, Corporate Partner, Farris, Vaughan, Wills & Murphy LLP, Vancouver

On The Idea: They have to prove their product works and that there’s a market. If they can prove that the construction industry will embrace this innovation, they have potential.

Red Flags: Their budget should be more detailed. How much money do they need to raise and exactly how will they spend it? The business plan also glosses over things like training people to operate the machinery. They need to consider the logistics of building a team to get them through the first few months.

Next Steps: The most important thing is always management. No start-up develops according to its founder’s plan, no business plan is ever implemented the way it’s presented and no product develops the way it is envisioned. But, if you have great management, you can come up with a backup plan.

Nilofer Saadat, Service Point Coordinator, The Business Link, Edmonton

On The Idea: This product has huge potential. Using technology to streamline construction processes is a terrific idea, especially if it results in more affordable housing for Albertans.

Red Flags: Is it green? I didn’t see anything in the business plan about green building trends, and that’s one thing a lot of people will ask questions about. Did they test the market? Would consumers want to buy this product? Do they have a quality control tool? How much is the capital cost for starting this venture?

Next Steps: A solid plan should include ways to deal with economic and market issues. Getting advisors experienced in finance, construction and technology commercialization is key. The business plan mentions advisors but doesn’t address what each one will do.