E Ink Case Study Analysis
Bronikowski, Jasinski, Yoder
February 10, 2012
Executive Summary
E Ink is an attractive investment for venture capital. The company has a skilled management team that has proven able to overcome the complex technical issues of commercializing an emerging technology. As a result, E Ink’s current film technology is well positioned to become the dominant design in markets where E Ink has large market shares and high revenue potential. E Ink should focus its future development strategies and resources on improving and expanding the capabilities of its existing film technology to achieve dominant design status. In addition, E Ink should secure Intel Capital funding and use it to develop display-manufacturing capabilities to transition from a materials supplier to a display supplier business model.
Venture Capital Funding / E Ink’s Past Performance
In order for E Ink to achieve its end goal of becoming the dominant display design in the industry, they must continue to raise capital, learn from their mistakes, and improve upon their current strengths and strategy. Before a venture capitalist allots money to E Ink, they will need to evaluate the strengths and shortcomings of E Ink’s current and past business structure and decisions.
The founders of E Ink, Joe Jacobson, Russ Wilcox, and Jerry Rubin, each have unique backgrounds and complementary skills creating a balanced mix of technical skill and business experience. Each of the three founders proved to be capable fundraisers, which was essential for the foundation and growth of E Ink. Additionally, E Ink’s initial emphasis on protecting intellectual property enabled them to license patents and protect their first mover advantage in the market. By 1999, E Ink had acquired, licensed, or filed 26 patents (Yoffie 3). Patent protection was essential for E Ink’s sustainability because its main advantage was being a technology