London-based VC 2xN has rolled out $120 million fund to back startups in quantum computing across Europe. Bringing high-growth value of network effects to early-stage founders, 2xN’s Fund II will invest in up to 25 early-stage startups in Europe and the U.S.
The ticket size of investment will range from $3 million to $5 million starting from pre-seed to Series A in each company. The fund will focus on quantum startups and companies in the sectors of mobility, collaboration, marketplace and edtech.
The company had earlier unveiled its first fund of $50 million in stealth mode in 2021. The last fund had made 21 investments in companies, including Quantinuum, and StudySmarter.
The 2xN’s oversubscribed fund is backed by the Danish Growth Fund and several family offices, including the founders of e-scooter startup Voi and wine marketplace Vivino; and Ilyas Khan, founder of Quantinuum. The fund reflects the rise of serial entrepreneurs and operators turning to invest in an increasingly mature European market. While it’s a trend that has gained momentum in the U.S, single GP funds are still a rarity in Europe.
The company’s colloabrative approach has already seen 2xN co-invest alongside the likes of Sequoia, A16Z, Kleiner, Founders Fund, Accel, YCombinator, and Owl Ventures, while getting access to oversubscribed rounds.
Talking about the new fund, Lars Fjeldsoe-Nielsen, general partner and co-founder of 2xN said: “Instead of being just another fund, I believe 2xN represents a key moment in the evolution of European VC. Ex-operators and founders are increasingly becoming investors, while the speed of startups increases, and founders are repeat entrepreneurs. This represents a huge opportunity for Niels and I to help share decades of experience, strengthen global networks and build an ecosystem of investment with the next-generation of founders and their innovations. This is only possible by shifting away from the closed systems of old and creating a culture of openness, transparency and shared deals in a way that benefits everyone.”
2xN co-founder Niels Nielsen added: “Having seen the growth of the quantum computing sector from the inside out, the innovations and potential of this space are unmatched. This creates both an opportunity for us as investors, and entrepreneurs and operators at heart, to be a part of something truly ground-breaking while also bringing the credibility and knowledge needed to help our LPs, co-investors and networks, enter this space.”