Antares Diamonds

My name is Jordan Anoma. I am a rising 2nd year dual degree (MBA/MA) candidate at the Wharton School and Lauder Institute at the University of Pennsylvania. Originally from the Ivory Coast and Liberia, I've always had a keen interest in social impact ventures and startups in emerging markets, despite my corporate banking career. I strongly believe social impact focused startups can radically transform emerging economies by creating jobs and improving livelihoods. In 2018, I founded a diamond startup called Antares Diamonds which I am working on full time with a dedicated team this summer. Antares Diamonds is developing transparent diamond supply chains to inform and empower ethical global customers so they can have direct economic impact on impoverished mining communities through their diamond purchases. We primarily focus on the artisanal diamond sector, the origin of 20% of all mined diamonds annually yet generally neglected by the global market. 

Despite annually mining 20% of the world's natural diamonds, most artisanal diamond miners worldwide live in poverty. Their diamonds are rarely traced or identified in the global market and their stories are left unheard. Antares Diamonds is the first diamond company focused on commercializing artisanally mined diamonds in the global market, with direct economic benefit for the artisanal miners & mining communities where these diamonds come from. We source directly from artisanal mining communities in Liberia, perform value additive services on these diamonds, then sell them directly to jewelers in global markets. We subsequently give a percentage of our revenue directly back to the mining cooperatives we source from for socio-economic development. By dedicating and giving back a percentage of our revenue, which is derived from polished diamond sales, artisanal miners and mining cooperatives are able to capture a much larger percentage of the final economic value of their diamonds.

Artisanal diamond mining refers to a grassroots, labor intensive form of mining that has occurred on this earth for centuries and still comprises a major component of mining today. 20% of all diamonds mined annually come from artisanal miners. Artisanal mining sustains the livelihoods of over 100 million people and their families worldwide. Despite these glaring statistics, 90% of diamond consumers in the US market have no idea what artisanally mined diamonds are. In the post-war nation of Liberia, one of the poorest countries in the world, the vast majority of diamonds produced are mined artisanally. Furthermore, artisanal mining is the primary occupation of thousands of people and a leading economic driver in several Liberian counties. In Liberia, unemployment is high and literacy rates are low. Artisanal mining, under the right circumstances and alliances, could act as a catalyst for job creation and economic prosperity despite otherwise difficult circumstances.

Antares Diamonds is the first diamond company focused on commercializing artisanally mined diamonds in the global market, with direct economic benefit for the artisanal miners & mining communities where these diamonds come from. We source directly from artisanal diamond mining communities in Liberia, perform value additive services on their diamonds, then sell them directly to jewelers in global markets. We subsequently give a percentage of our revenue directly back to the mining cooperatives we source from for socio-economic development. By dedicating and giving back a percentage of our revenue, which is derived from polished diamond sales, artisanal miners and mining cooperatives are able to capture a much larger percentage of the final economic value of their diamonds.

Our project serves artisanal miners and artisanal mining communities in Liberia and could be recreated in other markets. Artisanal mining has been neglected for too long in international markets, keeping hard working people who mine some of the worlds most valuable precious metals in poverty. With a local team of 4 full time employees in Liberia, we have a deep understanding of what is happening to miners in the artisanal diamond market. We engage directly with rural towns and mining cooperatives who value our partnership and innovative business structure. By partnering with our business, artisanal miners are projected to make 65% more in wages than the status quo, as well as derive more committed funds to develop their communities.  The average artisanal miner in Liberia is uneducated and lives below the poverty line, with limited options for work. 

Antares Diamonds is social impact innovation at its finest. We are directly improving the lives of miners that live below the poverty line in emerging markets by connecting their artisanally mined diamond production to global markets. Our business model can drastically raise incomes and spark socio-economic development in rural African areas. Moreover, by acting as a partner and conduit internationally, we are able to raise awareness about artisanally mined diamonds and potentially create a new brand and sub-category of diamonds with social impact which is demanded by the global ethical consumer.

As a Liberian-American, I have had the privilege to visit Liberia numerous times over the years. Antares Diamonds grew out of a passion project of mine, where I would travel to very remote parts of Liberia to meet village chiefs and elders of mining communities. I was curious about the diamond sector in this poor nation and wanted to learn more. I was perplexed when I heard numerous stories of diamonds above 10 carats found and sold because communities that mined these diamonds had nothing to show for it. For context, many diamonds above 10 carats are very rare and are generally worth over a hundred thousand dollars each, if not more. I knew there had to be a way to solve this issue and repatriate more money back into Liberian communities from diamond sales. I realized the issues and gaps that resulted in poor outcomes for locals in the diamond industry mostly occurred at the midstream ("broker") and value additive stages of a diamond; the stages after a diamond is mined up to when it is placed in a piece of jewelry. This was where Antares Diamonds could unlock the most value for all stakeholders.

Being a Liberian-American, I am strongly passionate about utilizing the skills that I have gained in America to improve the lives of others in Liberia and Africa as a whole. Africa has tremendous opportunity in the years to come and it is up to the educated citizens of the diaspora to lead and contribute to these endeavors. Liberia, in particular, holds a dear place in my heart because it is my motherland which was devastated by twenty years of war and greed. It is always disheartening to hear how my mothers generation speaks about how Liberia used to be and how it has become a failed state. I believe Antares Diamonds can be an inspirational business for the new Liberian generation as well as for African businesses as a whole. Moreover, I believe Antares Diamonds can also inspire diverse founders & entrepreneurs here in America who want to build international businesses but aren't quite sure how. 

I am a Liberian-American which means I have certain legal and cultural advantages establishing a subsidiary business operation in Liberia. More specifically, I am able to interact directly with miners and they are able to trust us as their partner and representatives in the international market. Furthermore, by being an American as well, I have been able to setup the parent company in America and I can leverage my network and skillsets acquired here for business development and fundraising efforts. I am a corporate banker by profession so I am keenly aware of how investors and bankers evaluate a business and which metrics can help show growth and traction. From a financial perspective, our venture is sound and can create tremendous value for artisanal miners and shareholders alike. By hiring a local team in Liberia, we have a committed staff ready to execute our vision. We have two gemologists that are able to certify and source the best diamonds coming from these communities that can provide the best returns for them. In addition, with a global team established, we are able to craft unique marketing strategies and capture global clients. 

Prior to 2018, I had to grow Antares Diamonds solely by bootstrapping the venture with my own salary. This was immensely difficult, because I had to plan and pay salaries for 4 full time staff in Liberia as well as pay for working capital and license fees, and manage my life commitments here in the US. I was able to deal with this financial challenge by sacrifice, financial discipline and grit. At times, I was very unsure how I would be able to meet payroll or sustain the company financially but I always found a way. Thanks to this sacrifice, financial discipline and grit, I was subsequently able to raise a hundred thousand dollars in a pre-seed round from various investors because of my financial commitment, and staying power and traction in the business.

I have been able to grow a team in Liberia and in the US through my leadership ability. My team in Liberia has been tremendously committed to the vision of Antares Diamonds despite my presence abroad because they believe in me and my ability to lead. When I was last in Liberia in January 2019, I was able to have meetings with my team, numerous town chiefs and elders who met with me to discuss opportunities to work with Antares Diamonds. These communities believed in me and decided to work with our young company in our early stage because of the notion that I can lead this team to success. Moreover, as the company has grown, we have been able to find global team members based in the US on board, willing to work for free, because they believe in the vision and my ability to lead. The breadth of talent and diversity of team members currently contributing to Antares Diamonds is amazing. From former consultants at McKinsey to former artisanal miners in Liberia, there is a collective effort and unity which is a testament to my leadership. 

We are the first diamond company to source directly from artisanal diamond miners, perform value additive services, and sell their diamonds directly to jewelers and end-consumers in order to capture more value for artisanal miners. Secondly, we are the first digital diamond brand focused on artisanally mined diamonds and raising awareness on this product for social impact in this sector. Third, as a tech-enabled company, we are the first company to fully trace, certify and sell artisanal diamonds and their origin story in the global market. 

Our work which consists of engaging directly with artisanal miners and mining communities, sourcing diamonds from them at fair prices and advising them on ways to boost production, allows artisanal miners to connect to global market customers through us and to reap greater rewards from their work. This disruption of the status quo artisanal mining industry has been cited to create more jobs in this sub-industry as well as repatriate more income back into these communities for socio-economic development. Studies have shown an increasing value placed on traceable diamonds and supply chains, and customer willingness to pay slightly more for a responsibly sourced diamonds linked to social impact.

Impact Report

The Garlo community currently consists of 60,000 people in Upper Bong County Liberia, 5 hours car drive from the capital city of Monrovia. The cooperative has 56 mining claims (they only currently mine on 3 of the 56 yet are projected to generate 1000-3000 carats a month because they geologically are near a kimberlite pipe). There are currently 150 active miners in the Garlo Cooperative who get paid $5 per day. 

Based on our existing agreement with the Garlo cooperative and five year production forecast, we plan to procure atleast 5% of the Garlo Coop's monthly diamond supply, or 6000 carats (600 diamonds) over 5 years. This will result in:

- 65% increase in monthly pay for the 150 Artisanal Liberian Miners on the Garlo claims, pulling .014% of the local mining population in Liberia from poverty over 5 years. In other words- $2,400 more income per miner per year ear resulting in $1.8 million in added income over 5 years.

Within the next year, we plan to further validate our business model through execution and show more tangible impact results with the Garlo Cooperative. More specifically, we plan to show the financial impact of our operations and how the additional funds repatriated back into the mining society have been used for development projects. 

Over the next five years, we plan to expand our business model within the Garlo Cooperative and beyond to increase job creation in this sector and economic impact in these mining communities throughout Liberia. 

Financial Barriers are: the growing need for working capital and growth capital to source more artisanal diamonds from cooperatives and build an international team. 

Market Barriers: Solidifying and growing our niche customer base consisting of responsible jewelers and jewelry designers in the US and other global markets

We plan on overcoming our financial barriers by winning more prizes and grants such as the Elevate Prize, and securing a larger investment in the near future. 

We plan on overcoming our Market Barrier through extensive marketing and sales strategies with our existing team to build deep relationships and trusted customers.

Levin Sources- a responsible mining advisory firm and industry thought leader who consults us on best practicesfor our mining partners and for our business. 

Ravara.io- A traceable technology company that is working with us to develop a novel traceability procedure and reporting for artisanal diamonds from mine-to-market, from mines in Liberia into the global market. 

The Fair Trade Jewelry Company- An early committed customer in North America willing to sell the artisanal diamonds we source from our mining cooperatives. 

We source rough diamonds directly from artisanal miners and mining communities in Liberia, West Africa. We subsequently export this inventory into the US and other global markets, perform value additive services such as certification and polishing, then sell these diamonds directly to jewelers and jewelry designers. With our business model, artisanal miners and their gemstones are directly connected to a global customer base who care about their production and want to help raise their economic well-being through purchasing their diamonds. Globally, jewelers and jewelry designers are searching for transparent and responsible diamond supply chains. We are able to offer this as well as the opportunity to have direct impact with their purchases, which gets passed along to the end consumer. Millenials and Gen-Z customers care more about impact with their purchases than previous generations and our business appeals to this end-target segment. 

As a for profit venture, our business will be self-sustaining in the near term through our diamond sales and marketing materials for artisanal diamonds. By refining rough diamonds before polishing them, substantial value is unlocked which enables us to have a high margin business. There is also an opportunity to expand our product offering and diversity our revenue generation through artisanally mined gold, traceability data and media content.

We raised $100,000 in a pre-seed round from various investors in 2018. 

We would like to raise up to $300,000 in grant funding this year to scale our business. 

We have budgeted $60,000 in total expenses for the 2020 fiscal year. 

Antares Diamonds is elevating opportunities for a large sect of the global mining economy (artisanal miners) who are traditionally left behind. We are raising awareness on this issue, and building transparent supply chains to help raise their incomes and the well-being of their communities. The Elevate Prize will be able to help us overcome our financial and market barriers as we scale our business. The $300,000 in grant funding will ensure we are well capitalized as we grow our business. Moreover, capacity building and networking with influencers and thought leaders will play a tremendous role in helping to garner more global awareness and support, and drive the inevitable shift from the existing status quo to responsible diamond purchasing with impact. 

To scale this venture and cement our position in the mining and responsible luxury space, we will need to be well-funded to operate and source artisanally mined diamonds at scale. Moreover, we will need to have talented team members in Liberia and in the US who can help build the business. With a global diamond supply chain, there are certain legal and regulatory requirements that we must adhere to and navigate in order to be successful. Lastly, with any business, especially a luxury goods venture, there is a need to market our business, our product and services in order to gain more customers, make more sales, and have more impact. All of these needs can be met with the Elevate partnership. 

Brilliant Earth is a large ethical jewelry business in the US. They pride themselves on responsible sourcing. If they were to partner with our business, there could be tremendous synergies.

Larger jewelry retailers like Tiffany's or Helzberg Diamonds would also be huge clients that would help us further penetrate the diamond industry with our branded diamonds. 

Lastly, large social media influencers and jewelry designers like @Thediamondsgirl or @marlaaaron would help us gain exposure and popularity if we can partner with them.