Quantonation Ventures Completes €70M Round to Support Early-Stage Quantum Startups

The closure of the fund amidst a challenging fundraising environment underscores the growing momentum behind quantum computing.Quantonation Ventures, a venture capital firm specializing in quantum technologies, has recently concluded the fundraising for its second early-stage fund, known as Quantonation II. The fund has secured €70 million in capital, a significant step towards its ultimate goal of €200 million.

Quantonation Ventures, established in 2018 as the pioneering fund exclusively focused on quantum technology, has a diverse portfolio that includes notable entities such as German KIT-spinout Quantum Simulations, Oxford’s Orca Computing, and France-based PASQAL, founded by the recipient of the 2022 Nobel Prize for Physics. While the fund’s roots lie in Europe, its investment scope extends beyond the continent. A significant portion of Quantonation’s startups are spinouts originating from renowned institutions such as MIT, Ecole Polytechnique, Institut d’Optique, Oxford University, Waterloo University, and the University of Sherbrooke.

The establishment of the fund in 2018 was rooted in the conviction that successful investment in the quantum technology domain necessitates a blend of scientific proficiency, business insight, and financial acumen. However, the fund’s recent closure falling short of its target amount mirrors the prevailing trend of economic uncertainty, with limited partners (LPs) exercising caution in deploying capital amidst ongoing instability in the global economy.

Although the quantum computing sector witnessed a global record in the number of deals last year, the overall deal value has yet to rebound to its peak in 2021. Despite this, institutional investors continue to dominate the funding landscape within the sector. However, the applications of quantum computing, especially in the realm of artificial intelligence (AI), have increasingly captured the attention of investors, signaling potential growth opportunities in this intersection of technologies.

Quantonation’s spokesperson emphasized the adaptability of quantum computing across diverse technological domains, especially in light of recent progress in hardware and software development. They anticipate a shift towards more companies exploring applications in fields like healthcare, climate change mitigation, security, energy, and high-performance computing, following the establishment of major quantum platforms.

Managing Partner Christophe Jurczak expressed satisfaction with the successful initial closing of the fund, highlighting the vibrant momentum within the quantum industry. He emphasized their ability to continue identifying top quantum companies globally and provide support to a diverse group of founders on their entrepreneurial ventures, even in new geographical areas. Additionally, he mentioned plans to expand the team and enhance their scientific expertise to further bolster their impact in the quantum landscape.

Jurczak expressed confidence in the quantum industry’s potential for significant progress and opportunities in various sectors. He highlighted the expectation of substantial advancements in critical areas such as healthcare, where quantum technologies could revolutionize medical research and treatments. Additionally, he emphasized the role of quantum computing in addressing pressing global challenges like climate change mitigation and enhancing security measures through advanced encryption methods. Furthermore, Jurczak noted the potential for quantum technologies to drive innovation in energy production and distribution, as well as in high-performance computing applications that require unprecedented computational power. Overall, he conveyed a positive outlook for the quantum industry’s future impact on diverse fields, fueled by ongoing advancements and entrepreneurial endeavors supported by Quantonation Ventures.