Quantonation's double-sized second fund shows quantum still has believers | TechCrunch

"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."

"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."

"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. The firm's thesis is to invest early to capture more value;"

Quantonation Ventures closed an oversubscribed second fund of €220 million, more than doubling its inaugural fund. Investor interest in quantum companies has increased even though industrial-scale quantum advantage remains distant. Governments and Big Tech are investing due to long-term cryptographic risks and strategic priorities. Technological breakthroughs and early demand from academic and industrial labs have expanded viable opportunities. Investors are shifting toward infrastructure and tooling providers — the "picks and shovels" — such as Qblox, which supply control hardware and software. New dedicated quantum funds have emerged and VCs are investing early to capture future value despite complexity and long timelines.

Read at TechCrunch