Diamond Standard, which offers the world’s only regulator-approved diamond commodities, has raised $30m in funding.
US-based venture firm Left Lane Capital and investment adviser Horizon Kinetics co-led the round. Gaingels and Republic.co also joined the round.
This equity will enable the company to expand production capacity and speed up distribution.
Diamond recently launched the Diamond Standard Fund. This allows investors to allocate funds to diamonds through convenient shares, rather than holding the gemstones. Blockchain technology enables the asset to be digitally traded.
The company claims it is unlocking a natural resource currently worth $1.2trn, which is more than silver and platinum combined.
Diamond Standard founder and CEO Cormac Kinney said, “Following 20% returns last year, the Diamond Standard Coin has continued to generate a positive return this year, while the S&P 500 is down 14% and bitcoin is down 50%. Investors need a new uncorrelated asset class, and this capital will enable us to increase capacity and expand our offerings,”.
Speaking on the investment, Left Lane Capital managing partner Jason Fiedler said, “While many investors and startups over-indexed towards digital-backed assets, we got excited by real-asset backed stores of long-term value.
“Investors have typically held about 20% of market value for a given commodity. Diamonds have withstood the test of time, and thanks to Diamond Standard, investors finally have access to the asset class in a convenient, safe and trusted manner.”
Left Lane Capital is no stranger to FinTech. It recently led the $6m funding round of Composer Technologies. The company allows investors to automatically invest in strategies that react to the market and capture the upside, while protecting their downside.
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