Key Highlights

Quantum computing startup IQM has raised $320 million in a funding round led by US investor Ten Eleven Ventures. The investment underscores rising investor interest in the quantum computing sector. Over the past year, quantum computing companies like IonQ and D-Wave Quantum have seen their stock prices surge dramatically.

European startup IQM plans to build high-performance quantum computers to compete with industry giants like Google and IBM.

Quantum computing company IQM has announced it has raised $320 million in new funding to accelerate technology development and drive commercial expansion.

The Finnish startup, headquartered in Espoo, was founded in 2018 by a group of scientists with the goal of building high-performance quantum computers in Europe - similar to the quantum computing devices being developed by companies like Google and IBM in the United States.

Quantum computers are computing devices that operate using principles of quantum mechanics, capable of solving complex problems that traditional computers struggle to handle. While conventional computers store information in "bits" that exist in states of either 0 or 1, quantum computers use "quantum bits" or "qubits" that can exist simultaneously in states of 0, 1, or a superposition between the two. Their core advantage lies in processing vastly larger amounts of data, enabling technological breakthroughs in healthcare, science, finance, and other fields.

IQM's funding round was led by US cybersecurity investment firm Ten Eleven Ventures, with participation from Finnish venture capital company Tesi. Co-CEO and co-founder Jan Goetz stated that this funding elevates the seven-year-old company to "unicorn" status, meaning a valuation of $1 billion or more.

The investment highlights the continued surge in investor attention toward the quantum computing sector. Over the past year, publicly traded quantum computing companies like IonQ and D-Wave Quantum have experienced dramatic stock price increases: IonQ's share price has risen nearly 480% over the past 12 months, while D-Wave Quantum's stock has surged more than 1,400%.

In an interview, Goetz remarked: "If we compare ourselves directly with NASDAQ-listed companies, looking at key performance indicators like employee count, revenue, and patent numbers, we're actually not behind at all and are fully capable of competing at this level."

Goetz noted that IQM has made significant progress since its founding. The company now employs 350 people globally and has not only built financial and sales teams but also established a factory in Espoo dedicated to manufacturing quantum computers.

Europe vs. United States: The Quantum Computing Competitive Landscape

Europe currently has several companies involved in quantum computing development, including IQM, Pasqual, Quandela, and others. However, these European companies have not yet reached the scale of their American counterparts.

Earlier this year, European Commission technology official Henna Virkkunen pointed out in a speech that European quantum computing startups often struggle to scale due to lack of private capital. She mentioned that the EU receives only 5% of global private investment, while the US accounts for 50%.

IQM's Goetz observed: "If you look at the deep tech sector emerging from European universities, you'll find a natural abundance of startups - after all, Europe has many top-tier universities. But the problem is that these companies find it difficult to achieve scalable growth."

"I now believe there's a risk that highly valued US companies might leverage their elevated stock prices to drive merger and acquisition consolidation." Indeed, IonQ announced in June that it would acquire British quantum computing startup Oxford Ionics for nearly $1.1 billion, with the transaction primarily paid in stock.

IQM's Current Business and Future Plans

To date, IQM has sold a total of 15 quantum computers. The company primarily offers two products: its flagship model "Radiance" and an economical quantum computer "Spark" designed for universities.

Looking ahead, IQM plans to expand beyond hardware limitations. Goetz stated that the company will use part of the funding to develop a software platform that enables developers without quantum computing expertise to easily utilize quantum computing technology.

Another core objective for IQM is advancing global expansion, with plans to grow its commercial operations and sales teams in the US and Asian markets. Goetz revealed that IQM has already sold two quantum computers in Asia (in Taiwan and Korea respectively) and recently sold its first device in the United States.

While a future IPO (initial public offering) may be an option for IQM, Goetz emphasized that the company currently has no listing plans, adding that private markets still offer "attractive funding channels."

Goetz stated that IQM's ultimate goal is to "build a sustainable, profitable enterprise that can establish itself for the long term and influence the future development of computing over many years to come."

He added: "To achieve this goal, we will spare no effort."