Eterneva Raises $10M to Create Diamonds from Ashes - Mark Cuban

The Profound Impact of Loss and Modern Memorialization

Experiencing the death of a cherished individual represents one of life’s most deeply felt traumas. Traditionally, remembering those who have passed involves arrangements for funerals and the selection of final resting places like caskets or tombstones. These preparations are commonly facilitated through the services of a funeral home.

Introducing Eterneva: A Novel Approach to Remembrance

Austin-based Eterneva is pioneering a distinctive direct-to-consumer model within the end-of-life sector. This four-year-old company specializes in crafting diamonds from the cremated remains or hair of both people and pets. While an unconventional business, it demonstrably resonates with individuals seeking a tangible connection to their loved ones following their passing.

Significant Growth and Series A Funding

Since its establishment, Eterneva has consistently achieved substantial year-over-year sales growth. Notably, the company more than doubled its revenue in 2020, as reported by CEO and co-founder Adelle Archer. Today, Eterneva announces a successful and “oversubscribed” $10 million Series A funding round. This round was spearheaded by Tiger Management, with contributions from Goodwater Capital, Capstar Ventures, NextCoast Ventures, and Dallas-based investor Mark Cuban.

Tiger Management is recognized as the hedge fund and family office from which Tiger Global Management originated.

An All-Star Investment Group

“The funding process was highly competitive,” Archer stated to TechCrunch. “We received multiple term sheets and were able to assemble a truly exceptional group of investors.” This group includes Capstar Managing Director Kathryn Cavanaugh, who now serves on Eterneva’s board. Additionally, Lydia Jett, a leading female partner at Softbank overseeing their $100 billion Vision Fund, and Kara Nortman, managing partner at Upfront Capital – a pioneer as one of the first women to attain a managing partner role at a VC firm and co-founder of Angel City with actress Natalie Portman, are also involved.

The Origin Story of Eterneva

Archer and co-founder Garrett Ozar launched Eterneva in early 2017, building upon their prior collaboration at BigCommerce. The company’s inception stems from a deeply personal experience for Archer. Her close friend and mentor, Tracey Kaufman, received a diagnosis of pancreatic cancer and sadly passed away at the age of 47. Kaufman, having no immediate family, bequeathed her cremated remains to her aunt, best friend, and Archer.

“Our search for suitable memorial options revealed a landscape of websites that were uninspiring, somber, and overwhelming,” Archer recalls. “Tracey was an extraordinary person, and I felt that honoring remarkable individuals deserved more thoughtful and meaningful choices.”

The Diamond Creation Revelation

While working on a lab-grown diamond venture, Archer discussed her mentor’s passing with a diamond scientist. The scientist proposed, “Given the carbon content in ashes, we could extract it and create a diamond from Tracey’s remains.”

This concept profoundly resonated with Archer.

“I knew immediately that I wanted to pursue this,” she explained. “Tracy’s vibrant personality seemed perfectly suited to the brilliance of a diamond, and it would allow me to keep a part of her with me always.”

A Customer-Centric Approach

This initial diamond served as Eterneva’s first creation, and Archer’s experience as a customer profoundly shaped the company’s commitment to delivering a unique and supportive experience for others. She quickly became “fully focused” on this endeavor, viewing it as a means to offer grieving individuals “brightness, healing, and a beautiful way to celebrate the lives of those they’ve lost.”

Production and Customization

To date, Eterneva has crafted nearly 1,500 diamonds for over 1,000 customers. Diamonds can be created as colorless or in a variety of hues, including black, yellow, blue, orange, and green. The starting price for an Eterneva diamond is $2,999, with the final cost dependent on size and color. Approximately 40% of Eterneva’s clientele choose to memorialize their pets.

A Different Tone in the End-of-Life Space

“We intentionally position ourselves as a stark contrast to the prevailing tone within this industry,” Archer stated. “While many companies focus on the logistical aspects of end-of-life planning, we are dedicated to helping people move forward and providing a platform for celebrating life.”

The Diamond Creation Process

The diamond creation process is complex, requiring 7 to 9 months to complete. Eterneva prioritizes transparency, keeping customers informed throughout each stage with videos and images.

“This process unfolds alongside the customer’s grief journey, which can be a very isolating experience,” Archer explained. “They often find themselves in a different emotional space by the time the diamond is complete than when they initially began.”

Future Plans and Expansion

The new capital will enable greater customer involvement in the process, such as witnessing the initial stages of diamond creation or collaborating with jewelers to design custom pieces that reflect the life of their loved one. The company also intends to expand its funeral home channel program nationwide through enterprise partnerships and increase operational capacity in Austin to meet growing demand.

Shifting Preferences in Memorialization

Eterneva anticipates a growing trend away from traditional funerals. “People increasingly desire personalization and meaning,” Archer said. “We plan to expand the platform with additional products and services in the future.”

Brand Awareness and Viral Marketing

The startup is actively building brand awareness, recently experiencing viral success with over a dozen TikTok videos showcasing its diamonds, according to Archer.

Investment History and Mark Cuban’s Support

Prior to the Series A round, Eterneva had secured $6.7 million in funding from angel investors and institutions. A $3 million seed round led by Austin-based Springdale Ventures was completed in 2020. Mark Cuban initially invested in the company after Archer and Ozar appeared on “Shark Tank,” acquiring a 9% stake for a $600,000 investment. Despite initial skepticism and accusations of being a scam, Cuban has consistently supported the scientific basis of Eterneva’s process and reinvested in the latest funding round.

Mark Cuban’s Perspective

In an email to TechCrunch, Cuban described an Eterneva diamond as “a unique, socially responsible way to stay connected to loved ones.”

“The company has significant potential for growth, and I’ve doubled down on my investment,” Cuban wrote. He further characterized the creation of a diamond from the ashes or hair of a loved one as “a profoundly personal commitment.”

“Eterneva navigates a very emotional and challenging time with a level of trust and care that I believe is unmatched,” Cuban concluded.