Quantonation Ventures, a venture firm investing in quantum and physics-based startups, has closed its oversubscribed second fund at €220 million, approximately $260 million. This is more than twice the size of its inaugural fund.
According to Quantonation partner Will Zeng, the firm's second fund has already invested in 12 startups, with a target portfolio of around 25. The fund's thesis is to invest early to capture more value, focusing on companies developing technologies that support the quantum industry.
The growing ecosystem of quantum technology has led to a shift in the types of investment opportunities available, Zeng told TechCrunch. One example is the "picks and shovels" opportunity, with companies developing technologies that support the quantum industry, such as Dutch startup Qblox.
The Funding Round
Major investors from Quantonation's first vintage, including Singapore's Vertex Holdings and Bpifrance's Fonds National d'Amorçage 2, have returned for the second fund, with new limited partners including the European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, and Toshiba.
Quantonation's geographic scope is equally international, with dual headquarters in Paris and New York City. The firm has backed French quantum companies, including Pasqal and Quandela, but also placed bets in Asia and North America.
Market Context
Despite warnings of a potential "quantum winter," the opposite has happened, with investor appetite for quantum computing increasing. The sector has become less incipient, with technological breakthroughs and early demand from academic and industrial labs.
Google's Willow chip was a landmark for error correction in 2024, but no architecture has won yet, and smaller players are still in the race. A surprising number of companies have entered DARPA's Quantum Benchmarking Initiative, Zeng noted.
Company Background
Quantonation was launched in 2018 and has since become a key player in the quantum technology sector. The firm's expanded thesis is backed by investors old and new, with a focus on not just quantum chips but also adjacent physics-based technologies such as photonics and lasers.
As Quantonation continues to invest in the quantum sector, the firm is well-positioned to capture the growing demand for quantum technologies. With its second fund, Quantonation is doubling down on its commitment to the quantum industry, and its investors are betting on the firm's ability to identify and support the next generation of quantum leaders.
