LVMH Luxury Ventures, the French luxury conglomerate’s private equity arm, has acquired a stake in Israeli lab-grown diamond start-up Lusix alongside other investors in a $90 million funding round.
The bet by luxury’s biggest company, whose “Ventures” subsidiary recently invested in Aimé Leon Dore and Heat, comes as the diamond industry seeks to respond to concerns about the ethics and sustainability of mining virgin materials. While the use of recycled gold has become increasingly common, lab-grown gemstones often carry a stigma for luxury brands. Neither LVMH’s Bulgari or Tiffany brands use the technology.
Lusix has sought to shake off sustainability concerns regarding the energy requirements of lab-grown stones by purporting to use only solar energy to produce its “Sun Grown Diamonds” brand. The company said it would use the investment to open a second solar-powered factory in Israel.
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