Quantonation’s double-sized second fund shows quantum still has believers

Quantonation’s double-sized second fund shows quantum still has believers

Quantum computing won’t be changing supercomputers in 2026, let alone reaching industrial scale. And yet, investor urge for food for firms pursuing the elusive quantum benefit hasn’t dwindled — it has elevated.

Quantonation Ventures, a enterprise agency investing in quantum and physics-based startups, has closed its oversubscribed second fund at €220 million, or roughly $260 million. That’s more than twice the measurement of its inaugural fund, and comes along with other indicators that the quantum winter isn’t coming yet.

While some warned that an excessive amount of quantum hype and never sufficient tangible outcomes would finally trigger funding to break down, the reverse has occurred. Take the prediction that quantum will finally crack trendy encryption: that second has no clear timeline, and yet governments have joined Big Tech in the race.

In the years since Quantonation’s launch in 2018, the quantum technology sector has develop into less incipient, with each technological breakthroughs and early demand from educational 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 associate Will Zeng told TechCrunch. 

One instance is what Zeng describes as the “picks and shovels” alternative, with firms creating applied sciences that assist the quantum trade. He cited the instance of Dutch startup Qblox, a long-boostrapped company that was promoting quantum management {hardware} and software to Quantonation portfolio firms before the VC agency co-led its Series A.

This rising ecosystem also explains why backers are doubling down on Quantonation, and why other devoted 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.

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The agency’s thesis is to speculate early to seize more worth; however a handful of quantum firms have already gone public, and their shares have surged in latest months. According to Bloomberg, this “quantum frenzy” is partly stocked by Nvidia, whose CEO Jensen Huang declared in June 2025 that “quantum computing is reaching an inflection point.”

Despite the fact that quantum chips have yet to outperform classical computer systems outdoors of purpose-built benchmarks, consensus is rising that real-life purposes are only a few years away, from life sciences to new supplies. That’s partly because of developments in error correction — the ability to fix the errors that quantum programs are liable to.

Google’s Willow chip was a landmark for error correction in 2024, however no structure has received yet, and smaller gamers are still in the race. Zeng famous that a stunning variety of firms have entered DARPA’s Quantum Benchmarking Initiative. He also believes that past the public market pleasure, “there are more exciting technologies that are currently private.”

For Quantonation, those non-public alternatives span a wider canvas than quantum chips alone. Fund two has already invested in 12 startups, with a goal portfolio of round 25, masking not just the software and industrial layers wanted to make quantum benefit real, however also adjoining physics-based applied sciences such as photonics and lasers.

This expanded thesis is backed by buyers previous and new. According to the agency, major buyers from its first classic, including Singapore’s Vertex Holdings and Bpifrance’s Fonds National d’Amorçage 2, have returned for the second fund, with new restricted companions including the European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, and Toshiba.

Quantonation’s geographic scope is equally worldwide. With twin headquarters in Paris and New York City, the agency has backed French quantum firms including Pasqal and Quandela, however also positioned bets in Asia and North America — and can continue doing so.

“In a lot of the areas we invest in, there’s not yet a clear regional winner, […] and a lot of the research has come from universities in many places,” Zeng said.

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