E-Ink: Financing Growth Presented By: NOVITAS Harpreet Bagga Neelabh Singh Qasim Zaidi Vikash Kr. Malhotra Virendra Shukla.

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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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