# Diamond Standard Financial Model Diamond Standard creates and distributes the world's first regulator-approved, fungible diamond commodity - physical coins/bars backed by blockchain tokens - to enable diamonds to be traded and invested in like gold. - Canonical: https://finamodel.com/startups/diamond-standard - Excel download: https://finamodel.com/startup-models/diamond-standard.xlsx - Category: Crypto/Web3 - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $30M - Founded: 2023 - Geography: Global (operations in Bermuda via BMA license; US-listed products on CME/MIAX; diamond sourcing globally via GIA/IGI) - Customer: B2C ## About the company Diamond Standard turns statistically equivalent natural diamonds into regulator-approved Coins and Bars, each paired with a Bitcarbon blockchain token that acts as a vault receipt. Its B2B exchange bids weekly on 16 million diamond types, while CME-approved custodians hold physical inventory and enable delivery. The company has launched a Diamond Standard Fund with Horizon Kinetics, received CME Globex and MIAX listing approvals, and plans futures, options, and recycling channels. Its claimed differentiation is regulatory approval, auditable provenance, geological-equivalence optimisation, and the ability to use 94% of gem-quality diamond varieties. Model commodity units outstanding, diamond purchase cost, assembly and grading, issuance spread, and inventory working capital. Add exchange GMV and take rate, fund AUM and sponsorship fees, and a separate recycling supply mix. Institutional adoption, fund AUM, product-launch timing, and the margin advantage from recycled diamonds are the crucial scenario levers. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - **Diamond Standard Coin / Bar**: Physical commodity containing an equivalent, fungible set of natural diamonds selected via statistical geological sampling. Each unit includes a wireless chip with a blockchain token (Bitcarbon) - a vault receipt enabling instant digital transfer. CME-approved custodians hold physical inventory. - **Smart Commodity**: Simultaneously physical and digital; token ownership = physical commodity ownership, available for immediate delivery. - **Diamond Standard Exchange**: World's first electronic loose diamond exchange. Automated market-maker bids on 16 million diamond types weekly, buying from registered B2B vendors (GIA/IGI clients). No consumer purchases. COD, no returns. - **Diamond Standard Recycling**: In preparation at time of deck - consumer-facing channel to source diamonds from used jewelry via FedEx with instant payment; expected to improve margins vs. wholesale sourcing. - **Bitcarbon**: Blockchain token representing ownership of the physical commodity; anticipated to trade on crypto exchanges (Q1 2023 target per deck). - **Diamond Standard Fund**: Launched July 2022 with Horizon Kinetics. - **Listed DS Fund / Futures / Options**: CME Globex listing approved via MGEX (CFTC); MIAX Options listing approved. Status as of deck: in development. ## Market - Total above-ground diamond supply (TAM proxy): **$1.2 trillion** - Current investor allocation to diamonds: **~1–2%** (Building Phase) vs. 15–33% for precious metals - Gap opportunity to reach 15% investor allocation: **~$180 billion at 2022 market prices** - Diamond market 2033 projected total value: **$5 trillion** - Sole-producer revenue potential: **>$250 billion** over time as prices build - Annual diamond supply chain size: **$40 billion** - Comparable precious metal markets for context: - Gold total supply: $9T, 32% investor allocation - Silver total supply: $1.1T, 19% investor allocation - Platinum total supply: $0.03T, 17% investor allocation - Palladium total supply: $0.02T, 15% investor allocation - Note: All market figures are company estimates sourced from industry analysts; deck cites reliability caveat. ## Revenue model Revenue streams implied by the deck (none priced explicitly): 1. **Commodity issuance spread**: Buys diamonds wholesale via exchange at market-maker prices; assembles and sells Coins/Bars at a premium to investors and dealers through a primary dealer auction structure. 2. **Primary dealer / distribution margin**: Investors buy Coins directly or through dealers who purchase via primary dealer auctions - Diamond Standard earns margin on this channel. 3. **Exchange / market-maker fees**: B2B diamond exchange charges implicit transaction fees (exact fee schedule not in deck). 4. **Diamond Standard Fund management / sponsorship fees**: Fund launched with Horizon Kinetics - revenue share or sponsorship fee structure not disclosed. 5. **Futures & options listing/sponsorship fees**: CME/MIAX-listed products; fee structure not in deck. 6. **Recycling margin**: Buy used consumer diamonds below replacement cost; capture spread vs. wholesale sourcing channel, improving Coin production margin. 7. **Bitcarbon / crypto trading**: Token to trade on crypto exchanges; revenue model not specified. ## Traction & metrics - **Diamond Standard Fund**: Launched July 2022 with Horizon Kinetics - **Initial spot commodity offering**: "was a success, providing the 'good for delivery bar'" - no revenue or AUM figures given - **CME Globex listing**: Approved via MGEX (CFTC) - **MIAX Options listing**: Approved - **Commodity production capacity**: Can use 94% of gem-quality diamond varieties; bids on 16 million diamond types - **Minimum buy volume**: At least 10,000 diamonds per buy - **Diamond threshold**: Stones above $750/stone must be GIA graded; below $750/stone graded and ungraded accepted - **ESG projections** (company estimates, not verified traction): 85% of future commodity diamonds projected to be recycled; $150B projected societal dividend; 1,000+ global jobs; 8 intake centers - No revenue, AUM, customers, GMV, or growth rate figures disclosed. ## Unit economics Implied margin structure: wholesale diamond purchase cost → assembly + logistics + grading → Coin/Bar sale price. Recycling channel expected to improve margins but no quantification provided. ## Competition / moat - **Stated moat**: - First and only regulator-approved fungible diamond commodity (BMA Bermuda Monetary Authority license) - Only electronic loose diamond exchange; forces price discovery on weekly basis - Proprietary geological equivalence optimizer - ensures every Coin/Bar exceeds 100% of the public geological standard - Provenance recorded on blockchain; audited by Deloitte - CFTC and MIAX approvals obtained for futures/options - **Competition**: Not addressed in deck. No competitor slide. - **Key strategic partners**: GIA (grading), IGI (inspection/assembly), CME (futures), MIAX (options), Horizon Kinetics (fund), Davis Polk (legal), Goldman Sachs and Morgan Stanley (in development for Bitcarbon) ## Team & funding ask / use of funds - **Cormac Kinney - Founder & CEO**: Serial fintech entrepreneur, 4 exits to public companies/funds; raised/managed >$600M capital; Carnegie Mellon (3 degrees); invented trading heatmaps; managed >$500M for Tudor and Millennium. - **Org chart**: Risk & Compliance (Corey Reason), Markets (Douglas Jordan), Marketing & E-Commerce (Chris Dessl), DSAM/Institutional Sales (Mark Lieberman), Operations (John Betts), Finance (James Campbell), Development (Rajiv Sohal). Kyle Denbrook listed without title. - **Prior raises**: Not explicitly stated; CEO bio references managing >$600M (historical, at other firms). --- ## Recommended financial model - **Archetype + why**: **Commodity issuance + financial infrastructure P&L** - analogous to a precious metals ETF/commodity sponsor combined with a marketplace. Primary driver is commodity AUM / units outstanding × spread, layered with exchange fee revenue and fund management fee income. Not a SaaS or DTC model; closest analog is a commodity trust sponsor (e.g., SPDR Gold Trust economics) combined with an exchange operator. - **Forecast horizon & granularity**: 5 years (Year 1–5), annual; Year 1 monthly if near-launch data becomes available. Quarterly is appropriate given lumpy product launches. - **Key drivers & assumptions**: - **Coins/Bars issued (units)**: Starting point unknown - begin with Year 1 pilot volume - **Diamond cost as % of Coin price**: - **Recycling channel ramp**: - **Fund AUM**: Diamond Standard Fund launched July 2022; AUM unknown - **Fund management / sponsorship fee**: - **Exchange transaction volume (B2B)**: - **Exchange take rate**: - **Futures/options listing fees**: - **Diamond market investor allocation**: Current 1–2%; 15% long-run target; TAM $1.2T today → $5T 2033 - **Revenue opportunity to Diamond Standard as sole producer**: Company states >$250B potential; model conservatively at 1–2% market share capture of AUM/units outstanding - **Opex**: Headcount-driven; ~8 senior leaders visible; - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Bear**: Slow institutional adoption (fund AUM $50M by Year 3); no Bitcarbon launch; recycling channel delayed; commodity issuance < 5,000 coins/year; exchange limited to current pilot vendors - **Base**: Fund reaches $250M AUM by Year 3; futures/options attract moderate open interest; recycling channel contributes 20% of supply by Year 4; commodity units grow steadily - **Bull**: Institutional allocation accelerates toward 5–10% of investment allocation target; fund >$1B AUM; Bitcarbon trades on major crypto exchanges; recycling channel dominant; futures liquidity attracts major asset managers (BlackRock, Vanguard) - **Required sheets / outputs**: 1. **Assumptions** - all drivers (commodity volume, spread, AUM, take rate, recycling mix, opex) 2. **Commodity P&L** - units issued × price × spread − cost of diamonds − assembly/logistics/grading = gross profit per period 3. **Exchange Revenue** - GMV × take rate 4. **Fund Revenue** - AUM × management fee 5. **Bitcarbon / Other** - placeholder until disclosed 6. **Consolidated P&L** - all revenue streams, opex (by department per org chart), EBITDA 7. **Cash Flow** - diamond inventory is working capital; COD payment terms; Coin/Bar as inventory 8. **Balance Sheet** - key: diamond inventory on balance sheet; token liabilities (vault receipts outstanding) 9. **Market Sizing Bridge** - shows path from current 1–2% → 15% investor allocation and how Diamond Standard captures that flow 10. **Scenario toggle** - Bear/Base/Bull on key drivers ## Frequently asked questions ### Is the Diamond Standard financial model free? Yes. The Diamond Standard model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.