As we head into 2011, it is a good time to look back at the advances that have been made in the printed electronics industry. Up until now, the PE industry has been one of promise, but 2010 has brought more tangible evidence that people see the future of PE is a bright one.

There are two key areas that show this growth: financial investments and new products and partnerships. This week, we will take a look at the financial moves that have benefited the industry; next week will look at the partnerships and products that should continue to drive growth in the coming years.

Acquisition Activity

Merger and acquisition activities indicate interest, as companies look to invest in new technologies and markets. There were a few acquisitions in the PE space, most notably Bayer MaterialScience LLC’s acquisition of Artificial Muscle, Inc. (AMI) and 3M’s investment in Printechnologics GmbH.

Artificial Muscle was a 2004 spin-out of the Stanford Research Institute (SRI), with an eye toward commercializing its Electroactive Polymer Artificial Muscle (EPAM) technology. While EPAM was initially targeted for applications such as valves, pumps and sensors, AMI sees opportunities in the growing touchscreen market, such as smartphones, gaming controllers and touchpads.

Printechnologics, which was previously Menippos GmbH, has patented data memory and battery systems, which can be produced on paper through conventional printing.

Its latest product introduction, AirCode touch, has tremendous potential. AirCode touch allows the user to place a card, a package or just a piece of paper on their smart phone’s touch screen or hold the smart phone on a label, which will allow access to a brand owner’s app. This could lead to anything from coupons and games to additional information.

That Bayer and 3M are interested in the PE market is not surprisingly, as both companies already have stakes in the field. These investments show their confidence in the potential of the field.

Teijin Limited acquired NanoGram Corporation, a specialist in novel nanomaterials design technology, to function as a U.S. base for the development of silicon inks with semiconductor properties and the processes to manufacture such inks.

There were other notable acquisitions in the RFID field. Federal Signal Corporation acquired Sirit Inc., a leading provider of RFID technology. Identive Group, Inc. acquired Smartag, a Singapore-based manufacturer of RFID inlays and inlay applications, as well as RockWest Technology Group.

ODIN Technologies acquired Reva Systems, a leading RFID software supplier to dozens of global organizations. Trimble announced it acquired the business of ThingMagic, Inc., a leading developer of RFID technology.

Capital Investments

Start-up PE companies need financial backing to support their innovative products, and venture capital firms and other financial backers choose carefully where to invest their money. The PE field saw more investment in 2010, even though the after effects of the global recession are lingering.

There were plenty of noteworthy investments in the field. In the last month alone, Blue Spark Technologies, a leader in thin film battery production, received increased financial backing.

Blue Spark Technologies closed a $7.5 million Series B investment. Existing institutional venture investors Early Stage Partners and SunBridge Partners were joined by several private investors.

Odersun AG, a manufacturer of customized thin-film solar cells and modules, received state guarantees from the Federal State of Brandenburg for €10 million in loans in order to advance its ramp-up of production and market entry with customized solar products.

Thin Film Electronics, the first company in the world to produce polymer memories in large scale using roll-to-roll printing, successfully completed a placement of 23.3 million new shares. The gross proceeds from the placement totaled NOK 18.7 million ($3.15 million). Including the two proposed warrants issued to each share subscribed, the potential gross proceeds are NOK 62.9 million ($10.6 million). Thinfilm offered up to 23,314,000 new shares and received subscriptions for 81.2 million shares; the placement was subscribed by 3.5 times.

Ascent Solar Technologies, Inc. closed its previously announced public offering of 5.25 million shares of common stock at a price of $4.15 per share. Ascent Solar received net proceeds, after offering expenses and underwriting discounts and commissions, of approximately $20.25 million.

Identive Group entered into subscription agreements for the private placement of up to 4,097,624 shares of its common stock to accredited and other qualified investors in the U.S. and internationally. The anticipated gross proceeds will be approximately $10.35 million.

TAGSYS received €8 million in new investment, led by current investors Elliot Advisors, Endeavour Vision, Add Partners, DFJ Esprit and Saffron Hill. The funds will be used to expand its distribution channels, help partners secure new markets, and continue to develop UHF and HF solutions optimized for item-level applications for a variety of markets including library, textile services, brand and fashion and healthcare.

Confidex, a specialist in contactless ticketing for mass transportation applications and durable high-performance RFID tag solutions, received €2.7 million from a combination of sources, including a state-owned equity firm, Suomen Teollisuussijoitus Oy (Finnish Industry Investment Ltd.), Aura Capital Oy and previous owners. An additional €2.3 million loan was granted by Finnvera and the Sampo Bank Plc.

These investments indicate that there is a strong belief in the viability of these recipients, and that the field of PE is indeed moving forward.