Innovation Foundation names 2013 Breakthru Finalists – Telegraph Journal

By Quentin Casey | Telegraph Journal | link to original article

Nathan Armstrong may soon have to step away from his fulltime job and commit completely to his startup idea. It is the exhilarating risk facing every want-to-be entrepreneur.

“The initial step into the entrepreneurship world is like standing on the edge of a diving board,” he says.”It’s scary to take that first step.” Armstrong is hoping that initial leap will be made easier by prize money and mentorship secured through the New Brunswick Innovation Foundation’s 2013 Breakthru Business Plan Competition.

He and his brother, Gregory, are behind Cetex, a startup that has designed energy efficient wastewater systems for factories. Cetex is one of five finalists in the 2013 Breakthru competition, which will conclude March 20 when the first, second and third place finishers are announced.

The competition, which is typically held every two years, has grown significantly since its launch in 2007. NBIF’s CEO, Calvin Milbury, notes that 47 applications were received this year – up 50 per cent from 2011. The resulting pile of business plans is now whittled down to five.

“We’re looking for entrepreneurs who have an innovative idea and a desire to turn that idea into a business,” said Milbury, noting NBIF is looking for startups that have not yet been incorporated. “These are companies in their infancy. We get in at the early stages and help them out of the gate.” This year, the finalists are vying for $406,000 in cash and in-kind prizes. The first-place company will receive $100,000 (with NBIF, in exchange, taking 10 per cent of the company’s common shares). The second and third place teams will each receive $50,000 in exchange for five per cent of their common shares.

The winning companies also gain access to a variety of services to help aid their progress, including legal help from Cox and Palmer. “Getting them out of the gate on the right foot really improves their chances of succeeding,” Milbury said.

According to Milbury, seven of the previous nine Breakthru prize winners are still in business. Many have either raised significant investor cash or are producing revenue, or both.

“That’s been a pleasant surprise for us. We never expected to have such a good batting average,” he said, pointing to Smart Skin Technologies and Zaptap as notable examples of success.

Nathan Armstrong is hoping to follow along. He and his brother, a University of New Brunswick chemical engineering student, have designed waste-water processing technology they believe will aid factory owners and manufacturers.

At this point, however, it’s all in the design phase.

“Everything works on paper,” said Armstrong, noting there are plans to soon begin development work in a UNB lab. A pilot unit could be ready for testing later this year.

“If all goes well,” he adds.

Armstrong, who is completing a marketing degree at UNB, says he will eventually have to commit to the startup full time.

“It reaches a point where you have to take that initial step to be a real entrepreneur – and take the real risk of following your dream.”