Who Owns Brilliant Earth Company?

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Who controls Brilliant Earth today?

When Brilliant Earth Group, Inc. IPOed on the NYSE in September 2021, founders retained concentrated voting power through a dual‑class structure, raising questions about who steers the company's strategy, ethics, and growth.

Founded in 2005 by Beth Gerstein and Eric Grossberg, the company blends e‑commerce and showrooms and emphasizes traceability and sustainability; public Class A shares trade while high‑vote founder and legacy shares maintain control.

See product analysis: Brilliant Earth Porter's Five Forces Analysis

Founders and Early Ownership of the Brilliant Earth company were concentrated with two co‑founders who set mission-driven governance and maintained dominant equity during the bootstrapping years.

Co‑founders

Brilliant Earth was co‑founded by Beth Gerstein and Eric Grossberg in 2005; both retained primary control through the company’s early stages.

Founders’ backgrounds

Beth Gerstein brought engineering, management and later an MBA with a strong sustainability focus; Eric Grossberg contributed strategy and finance expertise.

Early equity split

Equity was principally split between the two founders, with a small pool reserved for early employees and advisors; exact seed percentages were not publicly disclosed.

Early funding

Initial capital came from friends‑and‑family and angel investors to fund inventory, technology and brand development consistent with mission‑aligned priorities.

Governance provisions

Standard early‑stage provisions—four‑year vesting with a one‑year cliff, founder IP assignment and buy‑sell/refounder clauses—were implemented to protect continuity.

Control and continuity

No public reports indicate early founder disputes or buyouts; Gerstein and Grossberg guided product curation, sourcing standards and a digital‑first model through the first decade.

Equity dominance by the founders shaped Brilliant Earth ownership and corporate structure early on, with operational control remaining concentrated even as the company grew and prepared for later financing rounds; for mission context see Mission, Vision & Core Values of Brilliant Earth.

Key facts

Founders’ roles and early ownership dynamics that define who owns Brilliant Earth and how early governance was structured.

• Co‑founders: Beth Gerstein (CEO) and Eric Grossberg (executive chair).
• Primary ownership: founder stakes dominated during bootstrapping; precise seed percentages undisclosed.
• Early funding: friends‑and‑family and angel investors supported initial scaling and inventory.
• Standard protections: four‑year vesting with one‑year cliff, IP assignment, buy‑sell/refounder clauses.

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Key ownership events for Brilliant Earth include founder-led control during 2005–2019, an Up‑C reorganization and September 2021 IPO that created Class A public shares alongside high‑vote shares paired with LLC units, and gradual public float expansion with founders retaining concentrated voting power through 2024–2025.

Current major stakeholders as disclosed through 2024 filings show founders Beth Gerstein and Eric Grossberg controlling voting power via high‑vote shares and LLC units, legacy pre‑IPO holders and early employees holding additional control units, and public Class A shareholders (including Vanguard and BlackRock among top reported Class A holders) holding low‑single‑digit percent stakes of the public class.

Ownership Evolution — Key Takeaways

The Up‑C plus dual‑class share structure preserved founder control while enabling public capital access; institutional ownership of Class A settled into a typical small/mid‑cap mix by 2024–2025.

• Founders retain controlling voting stake via high‑vote shares and LLC units
• IPO proceeds ~$100–120 million implied initial public equity value in the low‑to‑mid tens of millions to low ten‑figure range at listing
• Top public Class A holders typically include Vanguard and BlackRock with low‑single‑digit percent positions
• Further details and competitive context in Competitors Landscape of Brilliant Earth

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The current board of directors of Brilliant Earth (2024/2025) combines founder insiders and independent directors, with Beth Gerstein serving as CEO and director and Eric Grossberg holding a senior leadership/chair role; investor‑affiliated representation is also present. This composition yields concentrated insider influence over strategy and governance.

Board composition reflects a controlled‑company structure where founders and pre‑IPO owners retain outsized voting power alongside independent oversight for audit, comp and nom‑gov functions.

Board control and voting mechanics

The company uses a dual‑class voting structure: Class A common shares carry one vote each, while high‑vote shares paired with LLC units grant founders and legacy holders greater votes per economic unit.

• One‑share‑one‑vote applies to Class A public shares, typical for retail investors.
• Founders/legacy holders hold high‑vote shares (commonly 10 votes per share) paired with LLC units, concentrating control.
• Investor‑affiliated director represents significant pre‑IPO holders but does not materially dilute founder voting dominance.
• No widely reported proxy contests or activist campaigns through 2024; key votes (say‑on‑pay, director elections) passed with comfortable margins due to insider voting strength.

For further governance background and strategic context see Growth Strategy of Brilliant Earth.

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Since the 2021 IPO the public Class A float of the company expanded modestly via employee equity and routine liquidity, while founders and insiders maintained concentrated voting control through high‑vote shares; institutional passive funds increased exposure after index inclusion and the company prioritized profitable growth and showroom expansion into 2024.

Industry dynamics 2023–2025—accelerating adoption of lab‑grown diamonds and normalized post‑pandemic demand—shifted strategic emphasis to assortment mix, pricing discipline and lower marketing CAC; analysts expected continued founder‑led control through 2025 absent a governance conversion or recapitalization.

Ownership concentration

Insiders preserved majority voting power via high‑vote shares; public Class A holders held economic interest but limited control.

Institutional interest

Passive index inclusion and small‑cap ETF allocations raised institutional stake in the free float through 2024.

Capital allocation

Management prioritized showroom openings (dozens by 2024), omnichannel tech and margin improvement over large buybacks or big secondary offerings.

Future scenarios

Likely changes include incremental index inclusion or limited secondary liquidity for legacy holders; any major change would affect Class A float without ceding control unless a recapitalization occurs.

Relevant reading on the company’s business model and revenue mix: Revenue Streams & Business Model of Brilliant Earth

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