Internet Diamonds Shine Anew

While a diamond may last forever, the amount of time between venture rounds for an Internet-based diamond retailer can take less than two months.

Internet Diamonds of Seattle received an investment from Kleiner Perkins Caufield & Byers late last month, six weeks after raising $6 million in its first institutional venture round. Existing investors Trinity Ventures and Bessemer Venture Partners also participated in the round. The company would not disclose the size of the Series B offering.

“We got a lot of calls from people in the private world after we announced our first deal,” said Chief Executive Mark Vadon. “The first round closed before Kleiner Perkins had a chance to look at it.”

Proceeds from the investment will go toward sales and marketing, Vadon said, “only faster and more aggressively” than expected after the first round.

Although no formal relationships with other Kleiner Perkins portfolio companies have been established, Vadon said Internet Diamonds will take advantage of the firm’s omnipresence in the industry.

“They will provide us with business contacts and strategic guidance,” he said. “Being associated with Kleiner Perkins opens the door with everybody.”

Vadon said the company has no plans to raise additional capital at this time and has yet to contemplate going public.