French VC Quantonation Raises €220 Million for Flagship Quantum and Deep-Physics Fund

French VC Quantonation has raised an impressive €220 million for its second flagship fund dedicated to investing in quantum and deep-physics technologies. This amount surpasses the initial target and makes Quantonation the largest dedicated quantum investment firm by assets under management (AUM) globally.

Strong Support from Returning Limited Partners and New Investors

The success of the second fund can be attributed to the strong support from returning limited partners, including Vertex Holdings, Fonds National d’Amorçage 2, and Bradley M. Bloom, co-founder and former Managing Director of Berkshire Partners. In addition, new investors such as the European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, and Toshiba have also joined in this round.

Christophe Jurczak on the Evolution of the Quantum Industry

According to Christophe Jurczak, Managing Partner at Quantonation, the alignment of various factors such as hardware, software, supply chains, and industrial demand has led to a significant change in the quantum industry. He believes that quantum is no longer a race to build one machine, but rather an interlocking stack where the true value lies.

Growing Interest and Investment in European Quantum Technology and DeepTech

Quantonation's successful fundraise is just one example of the growing interest and investment in European quantum technology and DeepTech. Companies like QuantWare, 55 North, and Equal1 have also received substantial funding in recent years, showcasing the increasing confidence in the potential of quantum and physics-based technologies.

Shifting Focus to Support Companies Demonstrating Practical Advantage

With its second fund, Quantonation aims to shift its focus from backing pioneers in the field to supporting companies that can demonstrate practical advantage, build robust products, and prepare for industrialization. The firm has already invested in 12 companies and expects to build a portfolio of approximately 25.

Success of Previous Fund and Expanding Vision

The company's previous fund, Quantonation I, has also performed well, with reports placing it in the top quartile globally. The portfolio includes companies like PASQAL, Nord Quantique, and Multiverse Computing, which are all making significant progress in transitioning from research to commercial environments.

Quantonation's vision goes beyond just quantum computing, as it expands its focus to other physics-based technologies such as advanced materials, nanomaterials, supply chain, security, and deep physics and sensing. The firm believes that these technologies will play a crucial role in driving the next industrial revolutions and has the potential to bring about significant societal progress.

Key Takeaways

• Quantonation has raised €220 million for its second flagship fund, making it the largest dedicated quantum investment firm globally by assets under management.
• The success of the fund can be attributed to the support of returning and new investors, as well as the growing interest in European quantum and DeepTech.
• The firm aims to shift its focus from backing pioneers to supporting companies that can demonstrate practical advantage, build robust products, and prepare for industrialization.
• Quantonation's portfolio includes companies in various physics-based technologies, reflecting their belief that these technologies will drive the next industrial revolutions.
• The success of Quantonation's second fund showcases the growing confidence in the potential of quantum and physics-based technologies to bring about significant progress in society.

Source: French VC Quantonation Raises €220 Million for Flagship Quantum and Deep-Physics Fund