Quantonation Doubles Down on Quantum with €220 Million Fund, Signaling Continued Investor Confidence

Despite the ongoing challenges in achieving industrial-scale quantum computing, investor appetite for the sector remains strong. Quantonation Ventures has closed its oversubscribed second fund at €220 million (approximately $260 million), more than doubling the size of its inaugural fund.

Quantum Investment Defies Expectations

Contrary to predictions of a “quantum winter” due to a lack of tangible results, funding for quantum and physics-based startups is increasing. This surge in investment comes as governments and Big Tech companies continue to race towards cracking modern encryption, despite the lack of a clear timeline for success. TechCrunch reports that the quantum technology sector has matured since Quantonation’s launch in 2018, with both technological advancements and growing demand from academic and industrial labs.

A Shift in Investment Opportunities

Quantonation partner Will Zeng notes a “shift in the types of investment opportunities” available. The fund is increasingly focused on “picks and shovels” opportunities – companies developing technologies that support the broader quantum industry. An example cited is Qblox, a Dutch startup providing quantum control hardware and software, which Quantonation co-led a Series A funding round for after the company had already been bootstrapped and was serving Quantonation’s portfolio companies. TechCrunch

Expanding Beyond Quantum Computing

Quantonation II’s investment thesis extends beyond quantum computing itself, encompassing advanced materials, sensing, and next-generation computing. The fund has already invested in 12 startups, with a target portfolio of around 25. This broader focus reflects a growing understanding that progress in quantum technologies requires a holistic approach, including the development of supporting infrastructure and adjacent physics-based technologies like photonics, and lasers. Quantonation and QuantumZeitgeist

Investor Confidence and Global Reach

The oversubscribed fundraise demonstrates increased investor confidence in the quantum sector. All major investors from Quantonation’s first fund returned for the second, and new limited partners include the European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, and Toshiba. Quantonation

With dual headquarters in Paris and New York City, Quantonation has a global investment scope, backing companies in France (including Pasqal and Quandela), Asia, and North America. Zeng emphasizes that there isn’t yet a clear regional leader in many of these areas, and research is distributed across universities worldwide.

The Largest Dedicated Quantum Fund

With €220 million in assets under management, Quantonation is now the largest dedicated quantum investment firm globally. QuantumZeitgeist. Its first fund, totaling €91 million, reportedly performed in the top quartile globally, indicating a successful track record and growing conviction in the potential of quantum and deep-physics technologies. Quantonation