IQM Quantum Computers, a Finnish-based company, has raised $320 million in new venture capital funding. The Series B round was led by Ten Eleven Ventures, marking the first time a U.S. investor joined the group. Existing backers such as Tesi, Elo Mutual Pension Insurance, and World Fund also took part. According to IQM, the funding values the firm at over $1 billion. Goldman Sachs (GS) acted as advisor to the deal, which lifts IQM’s total funding since launch to $600 million.
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Expanding Scope and Technology
The company, founded in 2018, develops superconducting quantum computers and also runs a cloud service for its machines. In addition, IQM has begun offering on-premises systems, which are installed directly with customers. With the new capital, IQM aims to build a stronger presence in the U.S. and scale up its global assembly lines and data centers. Furthermore, the firm will invest in its chip-making sites in Finland and fund research into fault-tolerant quantum computing, a field focused on making quantum systems more stable.
While most quantum computers are still used in labs, the technology is viewed as a way to solve tasks that are too complex for traditional computers. Quantum systems can explore many outcomes in parallel, allowing them to process a much larger set of problems. As a reminder, last December Alphabet Inc. (GOOG) shared that a computer using its Willow quantum chip solved a challenge in five minutes that would be impossible for a regular supercomputer.
Competitive Landscape
Big technology firms such as International Business Machines Corp. (IBM), Microsoft Corp. (MSFT), and Alphabet continue to push forward with their own quantum projects. At the same time, startups are drawing more capital. Quantinuum, based in the U.K., raised $594 million in August and reached a valuation of nearly $10 billion. French firm Alice & Bob secured $100 million in January. In the U.S., IonQ Inc. (IONQ) agreed to acquire its British rival, Oxford Ionics, in June, while Rigetti Computing Inc. (RGTI) also recently raised funding.
Against this backdrop, European officials have called for more private money in the sector. In July, EU tech chief Henna Virkkunen stated that only 5% of global private funding in quantum technology flows into Europe. IQM’s new round reflects both investor confidence and the effort to close that gap.
We used TipRanks’ Comparison Tool to line up some of the top quantum stocks and other tickers mentioned in this piece. It’s an easy way to see how they compare and get a sense of where the space might be headed.
