Any single user or a particular organization will not own or supervise the network, rather, it will be an open system with an independent governance structure that creates and retains additional value within the industry and represents the interests of all participants. The long-term governance structure of the consortium will be established collaboratively through ongoing discussions with industry stakeholders and representatives.
Archives: FAQs
What is the Diamante Consortium?
The Diamante Consortium is a first-of-its kind consortium of diamond supply chain participants, facilitated through a secure, decentralized blockchain network. The network will be an open system with an independent governance structure that creates and retains additional value within the industry and represents the interests of all participants.
After investing, what is my likely exit strategy, expected return and timeline?
The Diamante team remains focused on taking advantage of the growing market opportunity and building a robust business in order to drive maximum returns for investors in the long term. Building a company for the long term, measured by a number of near-term milestones that will track our growth and progress, will give us options in our exit strategy. By focusing on building a company that is an attractive, robust investment target to potential acquirers in the future, we will maximize flexibility and optionality so that, at the right time, we can pursue the exit strategy that achieves the highest returns for investors at the time.
With respect to the Equity Financing, prospective investors should be prepared to hold the Diamante Equity Securities for a period of at least 5 -8 years. In terms of exit, Diamante hopes to be in a position to execute a variety of potential exit strategies, including being acquired through a merger, acquisition or similar transaction, and/or execution of an initial public offering.
Diamante will be an attractive investment target for large competitors in the financial services space (e.g., banks, payment processors, and credit providers). The company will also be a strategic investment for large technology companies with complementary service offerings
(e.g., IBM’s complementary service, TrustChain, which uses blockchain technology to track diamonds through the supply chain). Finally, the company will also be an attractive investment target for large players in the diamond industry (e.g., De Beers Group, which has also launched a diamond supply chain product, Tracr, powered by blockchain technology).
What valuation approach has Diamante followed?
In order to arrive at a valuation for Diamante Blockchain, a Discounted Cash Flow (“DCF”) analysis, as well as a forward revenue, multiple analyses have been conducted.
The forward revenue multiple approach gives a range of $12,500,000 – $19,000,000, with a midpoint of approximately $15,700,000, which supports the company’s current valuation of $12,500,000.
The DCF approach (outlined below), which is based on projected earnings of both the corporate payments platform and the lending platform expected to be launched later this year, yields a valuation of $30,900,000. Given the anticipated growth in the next twelve months, Diamante expects that additional capital in the future will be raised at a valuation within a reasonable range of this value.
This anticipated increase in value over the next twelve months is likely understated, as it does not take into account additional value generated by the launch and sale of the company’s native digital asset, DIAM. Diamante has already initiated the token-issuing process, which is expected to take 4-6 months, following which the token will be listed and launched on multiple reputable regulated exchanges globally.
What is the planned use of proceeds from this round?
Funds raised will be allocated in the following way:
- 35%: Product Development and Maintenance
- 25%: Admin and Operations
- 18%: Marketing and Business Development
- 10%: Creating liquidity for DIAMs
- 10%: Accounting, Compliance and Legal
- 2%: Contingency
What is the company’s desired pre-money valuation?
The desired pre-money valuation of the company is approx. $12.5 million.
Who are the major investors?
The Diamante project is majorly backed by investors from the diamond industry.
How much traction does Diamante have?
Diamante has already signed up more than 400 companies on to the consortium since its soft launch a couple of months back. The total revenue of the companies that have signed up for the consortium is between USD 8-10 Billion.
What are the details regarding Diamante’s previous financing?
The previous raise was done at a total valuation of $12.5 million
Has Diamante previously raised capital?
Yes, Diamante has raised a total of $783,000 in equity capital to date. Out of the total raise, the founder’s contribution was $190,000 and $593,000 was raised at a pre-money valuation of $12.5 million.
