Finnish quantum computing startup IQM is currently a unicorn. The company raised more than $300 million in a Series B funding round led by Ten Eleven Ventures, a US investment company focused on cybersecurity.
University spin-out IQM builds quantum computers for on-premises installations and cloud platforms that tap on this hardware. The company already sells quantum computers to APAC and US companies, but the strongest market remains in Europe.
That’s what this round is meant to change. Startups plan to use fresh cash for both commercial push and R&D to align with the market’s evolving understanding of what is needed to turn advances in quantum science into practical impacts.
To attract US clients in the face of competition with leading tech companies such as IBM, Google, and Microsoft, IQM knows it needs to accelerate its roadmap for both hardware and software. According to co-CEO and co-founder Jan Goetz, this means investing more in the company’s chip manufacturing facilities and research into software development and error correction.
Error correction, the ability to detect and correct errors specific to quantum systems is a hot topic today given the redefinition of the concept of competitiveness in quantum computers. “It’s always a trade-off between the number of Qubits, quality and reliability,” Goetz said.
Navigating this trade-off is important for developing real-world use of quantum computing that has long been envisioned but not prioritized. However, with Quantum progressing over traditional supercomputers, companies like IQM are trying to make sure their computers actually have applications faster.
Reliability aside, the IQM roadmap is consistent with the sector’s focus on the software layer needed to place quantum computing in the hands of the first end user.
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IQM’s immediate software-related objective is to build a developer platform similar to a “quantum computing SDK” with the goal of “introducing as many developers as possible and getting started on the machine.” As an alternative to IBM’s approach, the platform relies on Qrisp, an open source project by Berlin-based laboratory Fokus.
The second headquarters in Finland, Germany, is located where most of IQM’s 300 staff is located, and a large R&D unit in Munich works, Goetz said. “But in this round, especially in the US, we want to grow our teams and create more commercial traction.”
In the future, the company believes it will “be a little more operational in the US,” Goetz said, adding that tariffs could play a role in the decision. “One thing we’re considering is that if we sell more systems in the US, we can have local gatherings.”
However, IQM will continue to focus on US sales for the time being. The company recently sold on-premises quantum computers to Oak Ridge National Laboratory, a scientific laboratory run by the U.S. Department of Energy.
According to Alex Doll, co-founder and general partner of Ten Eleven Ventures, there is a strong overlap between the investment company’s papers and the IQM focus. “Quantum Computing will be a pivotal pillar of the next era of cybersecurity and computing innovation,” said Puppet, who has joined IQM’s board of directors as part of his fundraising.
The fact that Ten Eleven Ventures has a strong network in the US is a strong fit for startups, Goetz said.
Series B also saw investments from Finnish investment firm Tesi and Schwarz Group, Winbond Electronics Corporation, Eic, Bayern Kapital and World Fund. Per IQM, this new round brings total funding to $600 million.
Goetz feels the size of the round has been justified by the commercial and technical milestones that have been hit by startups in recent months. “We are currently the world’s most quantum computer company on all major continents,” he said.
In absolute numbers, it is still small. In the second half of 2024, the company reached 30 quantum computer production milestones. It helps to remind us that there is still a long way to go before the sector reaches a larger audience.
Still, IQM’s 54-kut chips are already in use by computing centers, research labs, universities and businesses, and Goetz says the company is currently planning to deploy its first 150-kut system.
