E-Ink: Financing Growth Presented By: NOVITAS Harpreet Bagga Neelabh Singh Qasim Zaidi Vikash Kr. Malhotra Virendra Shukla
Jan 18, 2018
E-Ink: Financing Growth
Presented By:NOVITAS
Harpreet BaggaNeelabh Singh
Qasim ZaidiVikash Kr. Malhotra
Virendra Shukla
Context
Company Name: E-Ink
Time: March 4, 1999
Event: JC Penny signed for pilot test in 10
stores across 4 cities
What is E-Ink
A product which could beam digital information form a wireless transmitter directly to a sheet of electronic ink that incorporated a printed antenna and a processor.
Forecasts estimate large market potential for this technology: Re-usable newspapers
E-books
Graphical displays
No market leaders, innovators could gain large market share
E Ink Applications
MatrixedDisplays
SemgentedDisplays
Who Is E Ink
Founders – highly capable fund-raisers Jacobson: MIT Media Lab Director, “a visionary” Wilcox: CEO, Harvard MBA, tech background Rubin: Lexis-Nexis founder, publishing “icon”
Additions Albert & Comiskey: Jacobson’s students, developers
Culture R&D Optimistic Problem solvers
E-Ink Goal
To revolutionize print communication through electronic ink displays
To move from prototype to full-scale manufacturing, and maintain market excitement about the company.
Pursue opportunities that could generate short term profitability while also serving to develop the technology along the path of radio paper
Definition of Core Competencies
Provides potential access to a wide variety of markets
Significantly contributes to the perceived customer benefits of the end product
Should be difficult for competitors to imitate
E Ink Core Competencies
Materials Development “Dreaming”
“Productizing”
Networking and Fundraising
Need to develop manufacturing expertise
Competency to Products Tree:Competencies Support Products
Core Competencies to ProductsB
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Com
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E INK
Displays
FPL
Product Development
Process Development
Networking and
Fundraising
Materials Development
Technology& Finance Partners
LAD/FPD/Radio LAD/FPD/Radio PaperPaper
Opportunity (Critical Path)
Large area displays– Estimated Rev - $20 million (2003) & 100 million (2004)– Investment needed - $10 – 20 million– Relevant Market Size - $ 610 million– Burn Rate $0.9 million (will last for 9 months)
Battery powered flat panel displays– Market Size $5 billion– Investment needed 30 – 50 million
Radio paper– Market Size (Newspaper) - $60 billion– Investment needed $50 – 100 million
Large area displays
Market Size: $610 million E-ink could be printed over large area-
Scalable Economical (Half of the existing price) E-ink enabled signs could be changed
instantly ( compared to 90 days time for LED) Expected market share- $100 million by 2004 Expected growth of 200% with LED
Flat Panel displays
In 1998 total Flat Panel display sales $14 billion
Expected to grow to $25.9billion by 2004
E-ink’s focus:
Applications requiring a high-contrast, low-power, thin and ultra-lightweight display
Sales potential ->$7 billion by 2002
Flat Panel displays Vs. LCD
E-Ink
Direct Color Change
Looks like real ink on paper
Less than 1mm thick
Flexible
Lightweight
LCD
Requires a change in light transmission
Lacks the appeal of ink on paper
Thicker than 1mm
Rigid
Limited viewing angle
Publishing
Radio paper is the ultimate aim for E-Ink
U.S. Publishing Industry->$135 billion
Manufacturing Cost->20%- 40%->27- 54 billion
opportunity
Evaluation of their Critical Path
Single Product for a single market and a single market niche
Technology Evolution Step by Step
Large number of patents including including license form MIT
Financing
First Round Of Financing: $15.8 billion Still $9 billion in hand Financing Need:
E-Ink would need to invest $10-$20 million for Large Area Display
Additional $30-$50 million in financing for Flat Panel Display
Additional $50-$100 million for publishing industry
Challenges
Choosing the right partner for both financing and technology development.
Retain E Ink's creativity, drive while focusing the company on growth and the demands of a first-product introduction
Develop the business model as E-Ink move along the “critical path”.
Stop Sleeping, its over !!
Thank You