The money will be used to “increase production capacity and speed up distribution of the only diamond products in the world that have been approved by regulators.”
The company that makes diamond commodities, Diamond Standard Co., has closed a $30 million investment round.
A press release says that the investment is meant to “increase production capacity and speed up distribution of the world’s only diamond commodities approved by regulators.”
Left Lane Capital and Horizon Kinetics led the Series A round. Gaingels and Republic.co are also taking part in this round.
The rise follows the launch of the Diamond Standard Fund, which lets investors put money into a new asset class—diamonds—through shares instead of holding physical diamonds. In September 2021, the company said that its new headquarters would be on Fifth Avenue, near the Gemological Institute of America and with a view of the New York diamond district (GIA). Last year, it also made agreements to make diamond futures available through CME Globex and options through MIAX.
By making diamonds a marketable good, Diamond Standard opens up a natural resource worth $1.2 trillion, which is more than all the silver and platinum in the world put together. With the recent release of the Diamond Standard Bar and the Diamond Standard Fund, there is a need for more production space to keep up with investor demand, which is growing quickly. The company is hiring a lot of people and building a new place to put together bars with the help of the International Gemological Institute. The GIA and the International Gemological Institute grade the company’s diamonds, and Deloitte looks at how the company runs on the inside.
“After making 20% last year, the Diamond Standard Coin is still making money this year, even though the S&P 500 is down 14% and bitcoin is down 50%. Investors need a new class of assets that aren’t tied to each other, and this money will help us increase our capacity and add more services, said Cormac Kinney, the founder and CEO of Diamond Standard.
Murray Stahl, Co-Founder and CEO of Horizon Kinetics, said, “The Diamond Standard offerings are a perfect fit for the contrarian, innovation, value, and inflation protection goals of Horizon Kinetics and like-minded investors.”
“While many investors and startups put too much stock in digital assets, we got excited about long-term value stores backed by real assets. In general, investors have held about 20% of a commodity’s market value. Diamonds have stood the test of time, and now, thanks to Diamond Standard, investors can finally get access to this asset class in a way that is easy, safe, and reliable,” said Jason Fiedler, Managing Partner of Left Lane Capital.
Left Lane Capital has put money into some of the most promising consumer technology and internet companies on four continents. The company looks for businesses that are at important turning points in their growth and leads deals at the Series A to C stage.