Quantum computing will not be supplanting supercomputers by 2026, much less achieving widespread industrial adoption. Despite this, investor interest in enterprises pursuing the elusive quantum edge has not diminished; rather, it has surged.
Quantonation Ventures, an investment company backing quantum and physics-based nascent businesses, has successfully concluded fundraising for its oversubscribed second fund, securing €220 million, or roughly $260 million. This capital is more than double the size of its initial fund and complements other indications that a “quantum winter” is not yet on the horizon.
Contrary to warnings that excessive quantum hype without sufficient concrete results would eventually trigger a collapse in funding, the reverse has occurred. Consider the forecast that quantum technology will eventually break modern encryption: this moment lacks a defined schedule, yet national authorities have joined major technology corporations in the race.
Since Quantonation’s inception in 2018, the quantum technology sector has matured, marked by both innovative advancements and initial demand from academic and commercial laboratories. Consequently, a “shift in the nature of investment opportunities” available to its subsequent fund has also materialized, as Quantonation partner Will Zeng informed TechCrunch.
An illustration of this is what Zeng refers to as the “picks and shovels” approach, involving companies creating foundational technologies that underpin the quantum industry. He cited the instance of Dutch startup Qblox, a company that self-funded for an extended period, selling quantum control hardware and software to Quantonation’s portfolio companies before the VC firm jointly spearheaded its Series A round.
This expanding network also accounts for why backers are significantly increasing their commitment to Quantonation, and why other specialized quantum funds like QDNL and 55 North have emerged.
“Venture capitalists acknowledge that this is a challenging sector for early-stage investment. The technology is highly specialized and intricate, the markets are often nascent, and the founding teams likewise,” Zeng stated.
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The firm’s strategy involves funding early to maximize returns; however, a number of quantum enterprises have already become publicly traded, and their stock prices have soared in recent months. According to Bloomberg, this “quantum mania” is fueled in part by Nvidia, whose CEO Jensen Huang proclaimed in June 2025 that “quantum computing is nearing a turning point.”
Even though quantum chips have still not surpassed conventional computational devices outside of specially designed tests, a shared belief is emerging that practical uses are merely a short period in the future, spanning from biological sciences to novel substances. This is partly owing to progress in fault tolerance — the capacity to rectify the errors that quantum systems are susceptible to.
Google’s Willow chip marked a significant achievement for error mitigation in 2024, but no single architecture has yet prevailed, and less prominent competitors remain in contention. Zeng observed that an unexpected quantity of companies have entered DARPA’s Quantum Benchmarking Initiative. He also believes that apart from the enthusiasm in public markets, “there are more thrilling innovations that are currently privately held.”
For Quantonation, these privately held prospects cover a broader scope than just quantum processors. Fund two has already backed 12 nascent businesses, with an intended collection of around 25 investments, encompassing not only the programmatic and industrial components needed to actualize quantum benefit, but extending to related physics-driven innovations such as photonics and lasers.
This broadened strategy is supported by both existing and new financiers. According to the firm, key backers from its initial fund, including Singapore’s Vertex Holdings and Bpifrance’s Fonds National d’Amorçage 2, have reinvested in the subsequent fund, with fresh institutional investors including the European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, and Toshiba.
Quantonation’s global reach is similarly worldwide. With two main offices in Paris and New York City, the firm has funded French quantum companies including Pasqal and Quandela, but has also made investments in Asia and North America — and intends to persist in this approach.
“In many of the sectors we back, there’s not yet a definitive leading entity in a specific geographic area, […] and much of the scientific inquiry has originated from universities in various locations,” Zeng commented.
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