Quantonation closes €220M fund for quantum startups

Quantonation Ventures, a venture firm investing in quantum and physics-based startups, has closed its second fund at €220 million (approximately $260 million). Launched in 2018, the firm’s second vehicle is more than twice the size of its inaugural fund. This close comes despite warnings of a potential quantum winter and the fact that quantum computing will not replace supercomputers in 2026. While the timeline for when quantum computing will crack modern encryption remains unclear, investor appetite for companies pursuing quantum advantage—the point at which quantum computers outperform classical ones—has increased.

The firm is shifting its strategy toward picks and shovels opportunities, which are technologies that support the broader quantum industry. Will Zeng, a partner at Quantonation, noted a shift in the types of investment opportunities available for this second fund. An example is Dutch startup Qblox, which sells quantum control hardware and software. Quantonation’s second fund has already invested in 12 startups, with a target portfolio of around 25. These investments cover software, industrial layers, and adjacent physics-based technologies like photonics and lasers. “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,” said Zeng.

The broader market has seen public quantum company shares rise in recent months, partly stoked by Nvidia CEO Jensen Huang declaring in June 2025 that quantum computing is reaching an inflection point. While quantum chips have yet to outperform classical computers outside of purpose-built benchmarks, consensus is growing that real-life applications for quantum computing are a few years away. This progress is supported by advancements in error correction, which is the ability to fix mistakes in quantum systems. Google’s Willow chip marked a landmark for error correction in 2024, but Zeng believes that more exciting technologies remain private.

Quantonation, which has dual headquarters in Paris and New York City, maintains a broad investment scope across European countries, Asia, and North America. Its portfolio includes French quantum companies Pasqal and Quandela. The second fund is backed by returning investors, including Singapore’s Vertex Holdings and Bpifrance, alongside new limited partners:

• European Investment Fund
• Grupo ACS
• Novo Holdings
• Planet First Partners
• Toshiba

Why it matters

Quantonation’s oversubscribed second fund serves as a clear signal that investor appetite for quantum technology remains robust, countering broader market fears of a quantum winter.