Quantonation Secures €220M Oversubscribed Second Quantum Fund, Signaling Strong Investor Faith in Quantum Tech

Quantonation has closed its second venture fund at €220 million ($260 million), more than double the size of its inaugural fund launched in 2018.

The fund was oversubscribed, highlighting sustained investor confidence in quantum computing despite the sector's challenges.

Quantonation's Journey in Quantum Investing

Founded in 2018 with dual headquarters in Paris and New York City, Quantonation specializes in early-stage quantum and physics-based startups.

The firm's first fund focused on pioneering quantum technologies, paving the way for broader ecosystem growth.

Key Investors Fueling the Expansion

Returning limited partners include Singapore’s Vertex Holdings and France’s Bpifrance Fonds National d’Amorçage 2.

New investors such as the European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, and Toshiba have joined the roster.

The fund targets investments in quantum chips, software for quantum advantage, photonics, lasers, and supporting 'picks and shovels' technologies.

Already, Quantonation has deployed capital into 12 startups, including Dutch firm Qblox, French players Pasqal and Quandela, with a goal of around 25 companies across Europe, Asia, and North America.

Navigating Challenges and Eyeing Quantum's Future

Partner Will Zeng notes the complexities of investing in this space, from specialized teams to nascent markets without clear regional leaders.

Despite no quantum computer yet outperforming classical ones at scale, advancements in error correction are accelerating real-world applications in life sciences and materials.

This larger fund underscores a maturing quantum ecosystem, with governments, Big Tech, and VCs racing toward quantum advantage amid recent breakthroughs like Google's Willow chip.

Quantonation's success reflects broader momentum, positioning early investors to capture value as private innovations transition to public markets.