Quantonation’s double-sized second fund shows quantum still has believers

Quantonation Ventures has closed its second fund at €220M, more than double its first fund, indicating growing investor confidence in quantum computing despite skepticism about immediate applications. The firm targets early-stage quantum and physics startups, adapting its strategy to include supportive technologies as well as quantum chips, while attracting both returning and new investors across a global landscape.

Key Points

• Quantonation closed a second fund at €220M ($260M), surpassing its first fund size.
• Investor interest in quantum computing is rising despite skepticism about its short-term potential (e.g., outperforming supercomputers).
• The firm is focusing on a wider range of quantum and physics-based startups, not just quantum chips.
• Investments include support technologies ('picks and shovels') and adjacent fields such as photonics.
• The firm aims to capitalize on longer-term market potential and has already invested in 12 startups, seeking to reach a portfolio of 25.
• Returning investors like Vertex Holdings and new ones such as the European Investment Fund reflect increasing confidence in the market.

Relevance

• The trend shows a resilience against the so-called quantum winter, distinct from prior tech investment cycles where hype led to bust.
• The expansion of investment in quantum technology parallels trends in AI and machine learning, with significant venture capital also flowing into these emerging fields.
• Quantonation is positioning itself in the evolving landscape of quantum computing, where companies are beginning to publicly thrive, similar to early days of AI startups.

Quantonation's successful fundraising underscores a broader optimism in the quantum space, as the industry evolves from nascent technology to a burgeoning sector, reflecting a continued belief in its transformative potential.