Quantum VC Closes €25M First Close on New Fund

Quantum Computing Investment Trends

VC investment in quantum computing experienced a significant decrease last year, as detailed in the “State of Quantum 2024” report. Funding dropped by 50%, moving from $2.2 billion in 2022 to $1.2 billion, as investors shifted their focus towards generative AI.

Despite this decline in private funding, projections indicate substantial government spending on quantum technologies. An estimated $40 billion is anticipated to be invested over the coming decade.

New European VC Fund Emerges

A newly established VC fund based in Europe aims to leverage this anticipated governmental support. QDNL Participations has secured a first close of €25 million towards its target of €60 million for a global fund dedicated to early-stage quantum startups.

The firm intends to broaden its investment scope beyond its home country, pursuing opportunities on an international scale.

QDNL’s Previous Investments

QDNL’s prior €15 million fund was specifically focused on bolstering the Dutch quantum ecosystem. This included investments in promising startups such as Qblox, QuantWare, QphoX, and Q*Bird.

Insights from QDNL’s General Partner

Ton van ‘t Noordende, general partner at QDNL Participations, shared his perspective with TechCrunch. He stated that quantum computing is inherently a global endeavor.

“Over the last decade, remarkable research has been conducted, leading to the emergence of a new startup ecosystem comprising over 600 companies,” van ‘t Noordende explained. “Furthermore, more than $42 billion has been invested by over 20 governments in the past few years.”

This investment has been instrumental in developing the necessary infrastructure, including clean rooms and facilities, effectively reducing the technological risks associated with quantum technology.

Netherlands’ Growing Quantum Ecosystem

The launch of QDNL signifies the Netherlands’ ambition to become a central hub for quantum computing. The government, with support from EU funding, has already initiated Quantum Delta NL, a comprehensive program that also serves as an investor in QDNL.

QDNL’s Expert Team

The QDNL team boasts significant expertise in the field. It includes Chad Rigetti, a pioneer in quantum computing, serving as a venture partner based in the U.S.

Additionally, Kris Kaczmarek, a specialist in quantum VC, has joined as investment director from 2xN. The team is further supported by advisors Nadia Carlsten (CEO of the Danish Centre for AI Innovation) and Charles Marcus of the University of Washington.

Industry Sentiment and Future Outlook

Early in the year, prominent figures like Mark Zuckerberg and Jensen Huang of Nvidia expressed cautious views regarding the timeline for the arrival of practical quantum computing.

However, Nvidia quickly reversed its initial stance and announced a dedicated quantum-exclusive Nvidia Day as part of its upcoming event in March.