Quantum computing will not be replacing supercomputers in 2026, let alone reaching industrial scale. And yet, investor appetite for companies pursuing the elusive quantum advantage hasn’t dwindled — it has increased.
Quantonation Ventures, a venture firm investing in quantum and physics-based startups, has closed its oversubscribed second fund at €220 million, or approximately $260 million. That’s more than twice the size of its inaugural fund, and comes in addition to other signals that the quantum winter isn’t coming yet.
While some warned that too much quantum hype and not enough tangible outcomes would eventually cause funding to collapse, the opposite has happened. Take the prediction that quantum will eventually crack modern encryption: that moment has no clear timeline, and yet governments have joined Big Tech in the race.
In the years since Quantonation’s launch in 2018, the quantum technology sector has become less incipient, with both technological breakthroughs and early demand from academic and industrial labs. As a result, there has also been “a shift in the types of investment opportunities that are available” to its second fund, Quantonation partner Will Zeng told TechCrunch.
One example is what Zeng describes as the “picks and shovels” opportunity, with companies developing technologies that support the quantum industry. He cited the example of Dutch startup Qblox, a long-boostrapped company that was selling quantum control hardware and software to Quantonation portfolio companies before the VC firm co-led its Series A.
This growing ecosystem also explains why backers are doubling down on Quantonation, and why other dedicated quantum funds such as QDNL and 55 North have emerged.
“VCs recognize that this is not an easy area to invest in at the early stage. The technology is very specific and complex, the markets are often new, and the teams as well,” Zeng said.
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