Quantonation’s $200M Second Fund Signals Strong Quantum Computing Belief
▼ Summary
– Quantum computing is not expected to replace supercomputers or reach industrial scale by 2026, but investor funding for the sector has increased significantly.
– Quantonation Ventures closed its oversubscribed second fund at €220 million, more than double its first fund, indicating sustained investor interest despite the technology’s early stage.
– The quantum technology sector has matured since 2018, leading to new investment opportunities like “picks and shovels” companies that provide supporting hardware and software.
– While quantum chips have not yet outperformed classical computers broadly, consensus is growing that real-life applications in fields like life sciences are only a few years away, aided by error correction advances.
– Quantonation’s investment thesis has expanded to include adjacent physics-based technologies beyond quantum chips, backed by a mix of returning and new international investors.
The landscape of quantum computing investment is witnessing a powerful surge of confidence, as evidenced by the recent closure of a major new fund. Quantonation Ventures has successfully raised its oversubscribed second fund, securing €220 million (approximately $260 million). This figure more than doubles the size of its first fund and arrives amid a broader trend of growing capital commitments to the quantum sector, defying earlier predictions of a funding winter. While the technology is not expected to replace classical supercomputers imminently, investor belief in its long-term potential appears stronger than ever.
This increased appetite comes as the sector matures beyond its earliest theoretical stages. Technological progress and emerging demand from academic and industrial laboratories have created a shift in the types of opportunities available. According to Quantonation partner Will Zeng, this includes a growing “picks and shovels” segment, companies building the essential hardware and software that support the broader quantum ecosystem. An example is Dutch startup Qblox, which developed quantum control systems used by other portfolio companies before Quantonation co-led its Series A round.
The emergence of this supportive infrastructure helps explain why limited partners are committing more capital and why other dedicated quantum investment funds have appeared. Venture capitalists acknowledge the sector’s inherent challenges, including its technical complexity and nascent markets, but the strategic opportunity is compelling. The investment thesis focuses on early-stage bets to capture value, though the landscape is evolving rapidly. A handful of quantum companies have already gone public, with their stock prices experiencing significant gains in recent months.
Market enthusiasm is partly fueled by influential voices, such as Nvidia CEO Jensen Huang, who recently suggested quantum computing is approaching an inflection point. A growing consensus suggests practical applications in fields like life sciences and material discovery may be only a few years away, aided by critical advancements in quantum error correction. While Google’s Willow chip marked a milestone in 2024, the race for a dominant architecture remains wide open, with numerous contenders, including many smaller players, participating in initiatives like DARPA’s Quantum Benchmarking program.
For Quantonation’s new fund, the opportunity extends well beyond quantum processors. The firm has already invested in twelve startups from its second fund, with a goal of building a portfolio of around twenty-five companies. The focus spans the full stack required to realize quantum advantage, including essential software and industrial applications, as well as adjacent physics-based technologies like photonics and advanced lasers.
This expanded vision is supported by a blend of returning and new institutional investors. Key backers from the first fund have recommitted, joined by new limited partners such as the European Investment Fund and Toshiba. Geographically, the firm’s strategy is intentionally global. Operating from Paris and New York, Quantonation has invested in French leaders like Pasqal and Quandela while also placing strategic bets across Asia and North America. As Zeng notes, because foundational research emerges from universities worldwide and no single region has yet established clear dominance, a broad international perspective is crucial for identifying the most promising breakthroughs.
(Source: TechCrunch)
