Diamond Foundry valued at $1.8bn after $200m fundraising

Diamond Foundry recorded a valuation of $ 1.8 billion after Fidelity’s $ 200 million investment. Lab-grown diamonds Start-ups use it to increase their production to compete with gem miners such as De Beers.

The Silicon Valley company, backed by Hollywood star Leonardo DiCaprio, challenges the traditional diamond industry by producing chemically identical stones.

The funding will support Diamond Foundry with the goal of quintupling production at its Washington plant to 5 million carats per year by the end of 2022. That’s almost a quarter of DeBeer’s 2020 production.

“This is the first time a diamond of this quality has been produced on a mining scale,” CEO Martin Roscheisen told the Financial Times. He said the company is probably considering opening a second factory abroad.

Targeting the high-end jewelery market, the company sells diamonds directly to consumers through the Vrai & Oro brand and through retail partners. We are also developing diamond wafers for use in the semiconductor industry.

Diamond Foundry has doubled its production over the last four years. However, according to Bain, global production of mined diamonds has declined since its peak of 152 million carats in 2017. Last year, in the turmoil of a pandemic, it fell 20% to 111 million carats.

Martin Roscheisen, Chief Executive Officer of Diamond Foundry, said: “All of the world’s largest tech companies are considering manufacturing diamond wafers.” © Diamond Foundry

According to Roscheisen, no new diamond mines will be produced and the market is “currently at its inflection point.”

Diamond Foundry says it sells lab-grown diamonds at an average price of $ 282 per rough carat, at a higher price than some natural stones. It seems that it was in the black last year.

According to market-tracking diamond analyst Paul Jimnisky, lab-grown diamonds are usually sold at significantly lower prices than natural stones. According to his data, half-carat laboratory-grown stones currently sell for about $ 615, compared to $ 1,395 for mined diamonds.

The company will also spend a portion of $ 200 million to complete the production of 200mm single crystal diamond wafers for use in semiconductors.

Using diamond instead of silicon for semiconductors can improve performance because it is a good thermal conductor. Data centers will probably be the first companies to use diamond wafer chips, but in the future they could be used in electric vehicles and 5G technology, Roscheisen said.

“All of the world’s largest tech companies are considering making diamond wafers,” he said. “It’s very difficult to use full diamonds in the tip … It’s not completely solved yet.”

Diamond Foundry has raised a total of $ 315 million since its launch in 2012 and is debt-free. Other investors include Tony Fadell, former CEO of smart home pioneer Nest, and Mark Pincus, founder of video game group Zynga. DiCaprio is an investor and advisor to the company.

Diamond Foundry valued at $1.8bn after $200m fundraising Source link Diamond Foundry valued at $1.8bn after $200m fundraising

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