De Beers no longer has the absolute monopoly it once enjoyed, but is still a large-scale, dominant player in the diamond industry. In the past week, the behemoth announced that they need to look outside of themselves and other traditional players in the diamond market for opportunities for growth and innovation. They created De Beers Ventures to actively consider the acquisition of minority equity stakes in start-ups and growth companies.
The new initiative will consider small investments in areas that may include downstream distribution, consumer brands, marketing platforms, security, cutting and polishing, and imaging technologies. The objectives of the investments will be to generate returns that are both strategic and financial.
Tom Montgomery, Senior Vice President of Strategic Initiatives, De Beers Group, said: “Not all good ideas can be generated or executed by a large corporation. We believe that harnessing the energy of entrepreneurs to pursue strategic opportunities that benefit De Beers and the diamond industry can be a cost-effective, risk-reduced way to pursue innovation.”
This move validates our creation of VULT as a way to step outside of the mainstream diamond market and harness the dense value in diamonds to create a financialized asset powerful enough to preserve wealth for generations.
In order for the well-known problems with diamonds to be solved, new thinking about the traditional value chain (which works in only one direction, and leaves the end customer disempowered) is needed. We at VULT are proud to be at the forefront of fighting to bring the transparency and global financial power of diamonds to savvy investors looking for a way to protect and transport their wealth.
And we’re not alone! As De Beers recognizes, there is a dire need for innovation in the industry. We’ve seen sparks of this in successful start-ups like the Singapore Diamond Investment Exchange and we will be on the lookout for other who recognize the unparalleled opportunity financialized diamonds present.
In case you missed it, watch our CEO’s TED Talk about this emerging trend: