Quantonation’s double-sized second fund shows quantum still has believers
Source: TechCrunch
Quantum computing will not be replacing supercomputers in 2026, let alone reaching industrial scale. And yet, investor appetite for companies pursuing the elusive quantum advantage hasn’t dwindled — it has increased.
Quantonation Ventures, a venture firm investing in quantum and physics‑based startups, has closed its oversubscribed second fund at €220 million—approximately $260 million, more than twice the size of its inaugural fund. This comes amid other signals that the “quantum winter” isn’t arriving yet.
While some warned that too much hype and too few tangible outcomes would eventually collapse funding, the opposite has happened. Predictions that quantum computers will eventually crack modern encryption have no clear timeline, yet governments have joined Big Tech in the race.
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.” Quantonation partner Will Zeng told TechCrunch:
“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.” — Will Zeng
“Picks and shovels” opportunities
Zeng describes a “picks and shovels” opportunity: companies developing technologies that support the quantum industry. He cites Dutch startup Qblox, a long‑bootstrapped firm that was selling quantum control hardware and software to Quantonation portfolio companies before the VC firm co‑led its Series A (source).
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.
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Market dynamics
Quantonation’s thesis is to invest early to capture more value; a handful of quantum companies have already gone public, and their shares have surged in recent 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.”
Sources
Technical progress
Despite quantum chips not yet outperforming classical computers outside purpose‑built benchmarks, consensus is growing that real‑life applications are only a few years away—from life sciences to new materials. This optimism is driven in part by advancements in error correction, the ability to fix the mistakes quantum systems are prone to.
- Google’s Willow chip was a landmark for error correction in 2024 (blog post), but no architecture has won yet, and smaller players are still in the race (TechCrunch roundup).
- A surprising number of companies have entered DARPA’s Quantum Benchmarking Initiative (DARPA program page).
- Zeng believes that beyond the public‑market excitement, “there are more exciting technologies that are currently private.”
Quantonation’s broader thesis
Fund II has already invested in 12 startups, targeting a portfolio of around 25. The focus spans not only software and industrial layers needed to make quantum advantage real, but also adjacent physics‑based technologies such as photonics and lasers.
Investors
- Returning LPs: Singapore’s Vertex Holdings, Bpifrance’s Fonds National d’Amorçage 2
- New LPs: European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, Toshiba
Geographic scope
With dual headquarters in Paris and New York City, Quantonation backs French quantum companies (e.g., Pasqal, Quandela) and places bets across Asia and North America.
“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.” — Will Zeng
About the author
Anna Heim is a writer and editorial consultant.
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- Freelance reporter at TechCrunch since 2021, covering AI, fintech & insurtech, SaaS & pricing, and global venture‑capital trends.
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Former LATAM & Media Editor at The Next Web, startup founder and Sciences Po Paris alum, fluent in French, English, Spanish, and Brazilian Portuguese.