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

Despite predictions that quantum computing will not rival supercomputers by 2026, interest from investors is surging. Quantonation Ventures, a firm focused on quantum and physics-based startups, has successfully closed its second fund at €220 million (around $260 million), more than double the size of its first fund. This growth signals that the anticipated 'quantum winter' may not be on the horizon. While some experts cautioned that excessive hype around quantum technology could lead to a funding collapse, the opposite trend is emerging. Governments and major tech companies are actively participating in the race to harness quantum capabilities, despite the uncertainty surrounding the timeline for breakthroughs such as quantum encryption. Since its inception in 2018, the quantum technology sector has seen significant advancements and growing demand from both academic and industrial labs. Will Zeng, a partner at Quantonation, noted a shift in investment opportunities for their second fund, with an emphasis on 'picks and shovels' — companies developing essential technologies for the quantum landscape. An example is Qblox, a Dutch startup specializing in quantum control hardware and software, which attracted investment from Quantonation after demonstrating its value in the sector. This evolving ecosystem has prompted investors to rally behind Quantonation as well as other dedicated quantum funds like QDNL and 55 North. Zeng highlighted the complexity and specificity of early-stage quantum investments, which can deter many venture capitalists. However, a handful of quantum companies have successfully gone public, experiencing a surge in share prices recently. Bloomberg reports that this so-called 'quantum frenzy' is driven in part by Nvidia, whose CEO, Jensen Huang, stated in June 2025 that quantum computing is approaching a critical turning point. Nevertheless, quantum chips have yet to consistently outperform classical computers in practical applications, though optimism is growing that real-world uses are imminent, particularly in fields like life sciences and materials development. Advancements in error correction technologies are paving the way for practical applications. Google's Willow chip marked a significant step forward in error correction in 2024, yet the competition remains fierce, with many smaller players still in the running. Zeng also pointed out that numerous companies are engaging in DARPA's Quantum Benchmarking Initiative, indicating a robust interest in refining quantum technologies. Beyond public market excitement, Quantonation is exploring a broad range of private opportunities, having already invested in 12 startups with plans to expand to around 25. Their investment strategy encompasses not only quantum software and industrial technologies but also related fields like photonics and lasers. Notably, the firm has attracted returning investors from its first fund, such as Singapore’s Vertex Holdings and Bpifrance, alongside new partners including the European Investment Fund and Toshiba. With headquarters in both Paris and New York City, Quantonation is diversifying its investments internationally, backing French companies like Pasqal and Quandela while also making moves in Asia and North America. Zeng emphasized the global nature of their investment strategy, stating that many of the fields they are interested in do not yet have clear regional leaders, benefiting from diverse research contributions from universities worldwide.