Diamond Intelligence Briefs - June 1, 2011

Diamond Trading Company (DTC) broker I. Hennig & Co. has acquired an equity interest in Verichannel, LLC, an online diamond-trading platform and jewelry-industry search engine.

Verichannel opened for business in January and, among other services, uses patent-pending technology to showcase diamonds online within hours of when the stones have been graded, including a full PDF of the grading report. The company has established direct computer links with the primary grading laboratories GIA, HRD, IGI, and AGS. Verichannel was created by Jacques Voorhees, founder of Polygon and an online pioneer in the diamond and jewelry industry. The company's core services are restricted to the trade.

"Hennig worked closely with Verichannel during its research and development phase," says Arik Sela, Hennig Managing Director. "We are impressed with the team Voorhees has brought together, and their vision for the company, and we are enthusiastic to take part in the increasing development of the on-line business-to-business activity of the diamond industry."

Commenting on I. Hennig, Jacques Voorhees says "Their global infrastructure, unique position in the trade, and broad industry expertise--particularly in the emerging markets of Asia--are a solid complement to our cutting-edge technology and e-business background. While the diamond industry has been moving online since the early eighties, the business is still based primarily on people, relationships, and trust. And probably always will be. These, of course, are Hennig's strengths."

Verichannel also provides search engine functionality for finding companies, products, and other services in the industry, using Google-based technology combined with its own proprietary software.