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Diamond Foundry

Producer of manmade diamonds
OTC
Medium risk

Invest in Diamond Foundry

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Investment Idea Details
About the company

Diamond Foundry is America's #1 producer of diamonds for the jewelry and semiconductor industries.

Diamond Foundry produces manmade diamonds. The Company cultures diamonds with a zero carbon footprint and offers diamond jewelry from independent designers.

The founding team of M.I.T., Stanford, and Princeton engineers previously developed pioneering breakthroughs in solar power technology – and had a hunch that techniques used to harness the energy of the sun could also be used to make a better diamond, atom by atom.

Market Opportunities

Diamond jewelry market represents $87 billion market (gem-quality diamonds at a price >250$) and is forecasted to grow by 3-5% to reach $100 billion in 2022.

Decrease in mined diamonds market share creates an opportunity for lab-grown diamonds. Lab created diamond jewelry market is estimated to be $1.9 bln today and is forecasted to grow 22% p.a. and reach $3.8 billion by 2022.

Risks

Diamond Foundry faces a strong competition from a number of firms. This may negatively affect its long-term viability and valuation.

Customer growth and revenue numbers were borrowed from open sources considered to be reliable. However, there is a risk that the actual financial indicators differ from the data from open unofficial sources, which may adversely affect the value of the company's shares.

Financials and Valuation

Diamond Foundry has closed three rounds of financing from individuals including actor Leonardo DiCaprio, Twitter/Medium founder Evan Williams, Zynga founder Mark Pincus, Facebook cofounder Andrew McCollum, former eBay founder and president Jeff Skoll, Andreas Bechtolsheim 1st investor in Google, Tony Fadell, Founder of Nest and inventor of the iPod and iPhone and many others.

Diamond Foundry has raised a total of $150M in funding over 3 rounds. Their latest funding was raised on Oct 1, 2018 from a Series B round. The last round valuation is $660M. The expected valuation at the exit is $1.8B. Target return is 200%.

How Venture Investments Work
1. Searching for Companies

United Traders analysts are in continuous search for OTC offers studying financial reporting, companies’ businesses, their future plans, analyzing them as potential acquisition targets or estimating prospective multifold capitalization increase as well as considering risks that may hinder business growth. The best ideas are offered to our investors.

Publication
10 Mar
Minimum Amount
$13
2. Buying shares

As part of our service for purchasing shares on the OTC market, for its traders and investors United Traders buys units in funds that own equity stakes in private companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.

Shares Outstanding
Limited
3. Public Offering

United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares.

Public Offering Date
Pending
Estimated Gains
+200%
4. Taking profit

After the Lock-up period is over, the investment position will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.

Exit
̴ 2021
Early Exit

Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.

For an investor the above means that the investment may be exited after paying a portion of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.

The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price.

Fees

ENTRY FEE

3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

EXIT FEE

0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

SUCCESS FEE

20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

EARLY EXIT FEE

Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

What Are the Benefits of Investing with United Traders?

WE ARE A RELIABLE PARTNER

Our risk managers will support you throughout the entire transaction life. You can also contact us by phone: +7 495 646-15-57 or 8 800 333-66-81, or visit our office for a detailed discussion.

HIGH PROFITABILITY

Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We select companies that already demonstrate strong financials and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares in a pre-IPO subscription.

LOW ENTRY THRESHOLD

To qualify for a pre-IPO subscription, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $15.

Risks

United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:

  • Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
  • Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
  • Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
  • Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.

Invest in Diamond Foundry

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