Startup That Uses Diamond Dust to Track Goods Raises $40 Million

Dust Identity Inc., a startup that authenticates products by marking them with invisible diamond dust, is raising $40 million in funding to enter new markets including sports memorabilia, luxury goods and art.

The majority of Dust’s business is in the aerospace and defense sectors, where it works with government agencies and private firms to verify the authenticity of important components in their supply chains. Executives now hope to apply technology used for airplane parts to the robust resale markets for products like sports collectibles, sneakers and luxury handbags.

“What kept on being a very constant ping to our system ...