Phasecraft raises $34M to bring quantum computing closer to solving real-world challenges

Quantum algorithms company Phasecraft has raised $34 million in Series B funding to accelerate its breakthrough work and transform quantum computing’s theoretical promise into practical applications.

Quantum computing hardware and software are converging on commercial utility, which is only possible by leveraging ultra-efficient algorithms, like Phasecraft’s. Its unique algorithms are hardware-agnostic, and partnerships with leaders such as Google Quantum AI, IBM, Quantinuum, and QuEra are enabling the company to push even faster towards quantum advantage. 

The company’s quantum-enhanced approach uses quantum computing alongside standard computing to overcome its limitations and enables today’s Noisy Intermediate Scale Quantum devices (NISQ) to tackle problems that were previously inaccessible, without waiting for perfect hardware.

This brings quantum applications to industry sooner than anticipated. Phasecraft is already working with end-users such as speciality materials developer Johnson Matthey, solar cell developer Oxford PV, the UK’s National Energy System Operator (NESO), and leading telecommunications provider BT. 

Ashley Montanaro, co-founder and CEO of Phasecraft, said: 

We’re actively creating quantum advantage at Phasecraft. Our algorithms are delivering meaningful results now, whether it’s simulating the physics of complex materials or optimizing the structure of a large energy network, whilst our partnerships with the world’s top quantum hardware providers increase the impact our algorithms will have for commercial applications. We’re delighted to have the backing of our visionary investors, such as Plural, Playground Global, and Novo Holdings, to support us on the mission to bring quantum advantage to the world faster.

By designing algorithms based on novel insights from theoretical physics and computer science, coupled with knowledge gained from extensive numerical simulations and a deep understanding of quantum hardware, Phasecraft’s work is already gaining momentum.

Phasecraft’s work spans material science, where it makes simulating materials millions of times more efficient, and biological research, where it applies quantum computing to biochemical processes relevant to drug development for genetic conditions. It is also advancing energy resilience by using quantum methods to optimise energy networks.

Its work is addressing areas such as material science, by making simulating materials millions of times more efficient and biological research by applying quantum computing to key biochemical processes relevant to drug development for genetic conditions. It is also advancing energy resilience by using quantum methods to optimize energy networks.

The round was co-led by Plural, existing backer Playground Global, and Novo Holdings’ Quantum Fund in its first direct quantum software investment, with additional participation from existing investors LocalGlobe, AlbionVC, and Parkwalk Advisors.

Ian Hogarth, partner at Plural, said:

Phasecraft is revolutionising the quantum landscape in ways that were previously thought impossible. Its hardware-agnostic approach means it’s been able to work with several of the world’s most powerful computing devices, creating algorithms that are more efficient by factors of millions and that are now helping to solve real-world problems like material discovery and the optimization of our energy networks. It's to the credit of the best-in-class team that Ashley and Toby have built that some of the biggest tech companies in the world, including Google and IBM, see Phasecraft as the way to accelerate the impact of their own devices. I’m incredibly excited to continue supporting Phasecraft not just as Chairman, but as an investor as well.

According to Peter Barrett, General Partner at Playground Global, society has yet to experience the possibilities of quantum materials, remaining largely unaware of the untapped potential they hold. He added:

With advancements in quantum algorithms from Phasecraft, we are poised to shift from discovery to design, entering an era of unprecedented dynamism in chemistry, materials science, and medicine.

Jeroen Bakker, Partner at Novo Holdings, also commented on the investment:

The impact quantum computing will have on the world is undeniable, particularly in the life sciences. Quantum algorithms offer tremendous potential for molecular simulation to predict drug efficacy and optimise design. This is why we are excited to make our first quantum software investment from our new Quantum Fund in Phasecraft. We’re excited about Phasecraft's ability to enable healthcare breakthroughs that could save millions of lives while reducing R&D timelines from decades to years.

The new funding, which brings the total raised to over $50 million including grant funding, will allow the company to double down on its R&D breakthroughs and expand industrial efforts, building real-world solutions for end users.