Quantonation ventures closes €70M round to fund early-stage quantum startups

Quantonation Ventures has closed its second early-stage fund dedicated to quantum technologies, Quantonation II, at €70M of its €200M target.

At the time of its creation in 2018, Quantonation was the first fund fully dedicated to quantum technology. Its portfolio contains German KIT-spinout Quantum Simulations, Oxford’s Orca Computing and France-based PASQAL founded by the winner of the 2022 Nobel Prize for Physics. The fund will not be limited to European investments. Spinouts constitute a notable proportion of Quantonation startups, with companies originating from MIT, Ecole Polytechnique, Institut d’Optique, Oxford University, Waterloo University and  University of Sherbrooke among the selection.

The fund was founded in 2018 ‘on the belief that investing in this domain required a combination of scientific expertise, business acumen and financial experience.’ The round’s closure short of its target reflects the general downturn; LP are reluctant to part with capital across the board due to continuing economic instability. 

The number of quantum computing deals hit a global record last year though overall deal value has not rebounded since its peak in 2021. Most of the sector's funding still stems from institutions, but its applications for AI in particular have caught investors' attention.

A spokesperson for Quantonation remarked on the versatility of quantum computing for a range of technologies following recent advances in hardware and software: “After the first phase of building major quantum platforms, we expect to see more companies working on applications in health, climate change mitigation, security, energy, and high performance computing.”

Managing Partner Christophe Jurczak commented on the raise: “This successful first closing shows, in addition to excellent funding rounds from our first portfolio, a remarkable dynamic in the quantum industry. With these resources, we can pursue scouting for the best quantum companies in the world and support a fantastic roster of founders in their entrepreneurial journey, including in new geographies for us. This will also be a great opportunity to expand the team and deepen our scientific expertise beyond our current focus. We’re looking forward to a bright future for the quantum industry.”