Quantum computing won’t be overtaking supercomputers by 2026, nor achieving an industrial scale. Nonetheless, interest from investors in firms seeking the challenging quantum advantage has only grown.

Quantonation Ventures, a venture capital firm focusing on quantum and physics-oriented startups, has finalized its oversubscribed second fund at €220 million, or roughly $260 million. This amount exceeds twice the size of its first fund and adds to other indications that the anticipated quantum winter isn’t on the horizon.

While some have cautioned that excessive quantum hype without sufficient concrete results could eventually lead to a funding collapse, the contrary has occurred. For instance, the projection that quantum will someday break current encryption technology lacks a clear timeline, and yet governments have joined major tech companies in the competition.

Since the inception of Quantonation in 2018, the quantum technology field has matured, witnessing both technological advancements and initial demand from academic and industrial laboratories. Consequently, there has been “a shift in the nature of investment opportunities available” to its second fund, according to Quantonation partner Will Zeng in an interview with TechCrunch. 

One illustration is what Zeng refers to as the “picks and shovels” opportunity, involving companies creating technologies that benefit the quantum sector. He mentioned Dutch startup Qblox, a long-bootstrapped enterprise that was providing quantum control hardware and software to Quantonation’s portfolio companies before the VC firm co-led its Series A funding.

This expanding ecosystem clarifies why investors are increasing their commitments to Quantonation and why other specialized quantum funds such as QDNL and 55 North have surfaced.

“Venture capitalists understand this is a challenging area for early-stage investment. The technology is highly specialized and intricate, the markets tend to be novel, and the teams differ significantly,” Zeng remarked.

The firm’s strategy is to invest early to seize greater value; however, a number of quantum companies have already gone public, experiencing significant share price increases in recent months. Bloomberg reports that this “quantum frenzy” is partly fueled by Nvidia, whose CEO Jensen Huang stated in June 2025 that “quantum computing is reaching a pivotal moment.”

Even though quantum chips have yet to surpass classical computers outside specific benchmarks, there is growing consensus that practical applications are just a few years away, ranging from life sciences to novel materials. This progress is partly credited to advancements in error correction — the capability to rectify mistakes inherent to quantum systems.

Google’s Willow chip marked a significant milestone for error correction in 2024, but no architecture has emerged victorious yet, and smaller entities remain in the competition. Zeng observed that an unexpectedly high number of companies have joined DARPA’s Quantum Benchmarking Initiative. He also opines that beyond the excitement in public markets, “there are even more promising technologies currently in private hands.”

For Quantonation, these private ventures encompass a broader canvas than just quantum chips. The second fund has already made investments in 12 startups, aiming for a portfolio of around 25, which includes not only the software and industrial components necessary for achieving quantum advantage but also related physics-based technologies like photonics and lasers.

This widened thesis is supported by both returning and new investors. The firm notes that leading investors from its initial fund, such as Singapore’s Vertex Holdings and Bpifrance’s Fonds National d’Amorçage 2, have come back for the second fund, along with new limited partners like the European Investment Fund, Grupo ACS, Novo Holdings, Planet First Partners, and Toshiba.

Quantonation’s geographical reach is also globally oriented. With headquarters in Paris and New York City, the firm has supported French quantum companies like Pasqal and Quandela while also investing in Asia and North America — and plans to keep doing so.

“In many of the sectors we invest in, there isn’t yet a distinct regional leader, […] and much of the research has originated from universities across diverse locations,” Zeng commented.