Case Study - 9 Diamond

	Deal name:	9diamond
	Date:	Feb, 2008
	Investors:	Kleiner Perkins Caufield & Byers, Qiming Venture Partners, RAPAPORT, Zero2IPO Ventures

Established in March 2005, 9 Diamond is the first domestic firm to specialize in online diamond sales. 9 Diamond entered the U.S. market through three channels. The firm's strategy combined internet sales, display centers and retail outlets. Establishing bonds of trust with domestic consumers is always a difficult problem for newly emerging foreign firms. 9 Diamond's market-entry strategy was successful, primarily because it was able to prove to American consumers that the company is a legitimate diamond sales corporation.

9 Diamond's parent company is Bluenile.com, the largest global online diamond retailer. Blue Nile had to adjust its global strategy to make it more suitable for the Chinese market. 9 Diamond used Blue Nile's global strategy as its general foundation, but tailored it to the Chinese consumers. After early success 9 Diamond decided to seek venture capital funding to speed up the pace of development.

Within the first month Zero2IPO helped 9 Diamond reach agreements with leading investment firms. KPCB (Kleiner Perkins Caufield & Bryers) is the largest venture capital fund in America and is now Bluenile.com's main investor. Qiming Venture Partners also invested in 9 Diamond, after it previously invested in the second largest online diamond retailer ICE.com and Diamond.com. 9 Diamond also received investment from the Rapaport Group. The Rapaport Group is currently the largest international diamond B2B company and possesses the most comprehensive global diamond exchange online platform. Zero2IPO itself also invested in 9 Diamond.