Espoo (Finland) and Munich (Germany) — IQM Quantum Computers (IQM), Europe’s leading company for building superconducting quantum computers, has raised €128 million in a Series A2 financing round. The lead investor is Europe’s largest climate tech venture capitalist World Fund from Berlin. IQM intends to use the money to further expand and internationalize its leading role in Europe with offices in Espoo, Finland, and Munich, Germany, among others. “This round of funding shows the importance of our mission: to develop quantum computers for the well-being of humanity. It also shows confidence in our business model and in our team’s ability to shape the future of quantum technology,” says IQM’s German founder and CEO Dr. Jan Goetz.
This funding round is the largest ever received by a European quantum computing company.
The financing follows a Series A1 financing of EUR 39 million in 2020 and includes the EUR 35 million risk loan from the European Investment Bank (EIB) announced in early 2022. Bayern Kapital, EIC Accelerator, OurCrowd, QuIC SPV, Tofino and Varma as well as existing investors MIG Fonds, Tesi, OpenOcean, Maki.vc, Matadero QED, Vsquared, Salvia GmbH, Santo Venture Capital GmbH and Tencent participated in the round.
Commenting on the round on behalf of the investors, Dr. Sierk Poetting, CEO of IQM, said: “This financing round is very important for the company. It is confirmation of the technological milestones achieved so far and will significantly accelerate future development. We are grateful for the renewed confirmation from existing investors and welcome the new investors in this strong round.”
European pioneer of quantum technology
Since its founding in 2018, IQM has become the world’s fastest growing quantum computing company and has solidified its position as the European leader in building superconducting quantum computers. IQM is the only European company already supplying complete quantum systems. The partners include a leading global automaker. In doing so, IQM pursues an innovative co-design strategy in which it works closely with industrial customers to develop application-specific processors.
According to the Boston Consulting Group (BCG), quantum technology could create up to $850 billion in value globally over the next 15 to 30 years as it scales and improves accuracy and stability. Quantum computing is a foundational technology that has extreme speed advantages over any supercomputer for certain calculations. It has great potential for areas such as drug discovery, encryption, and more accurately predicting movements in financial markets. Google announced back in 2019 that a quantum processor they developed completed a calculation in 200 seconds that would have taken the world’s fastest supercomputer 10,000 years.
Quantum computing can help solve the climate crisis
Since its founding, IQM’s goal has been to contribute to social progress with its own technology, which includes helping to address the climate crisis. There is great potential here for quantum computers because it can be used to model solutions that are not possible with the current computing power of classical computers. According to McKinsey, climate technology developed using quantum computing can reduce CO2 emissions by seven gigatons per year by 2035.
The potential of IQM’s technology lies, for example, in the optimization of energy networks or climate modeling. The company is already conducting basic research for significantly better rechargeable batteries as well as on completely new methods for designing materials.
A key metric used by lead investor World Fund in its investments is Climate Performance Potential (CPP). The companies and technologies invested in should have the potential to avoid at least 100 million tons of CO2 emissions each year until 2040. The Fund’s CPP calculations show that IQM’s technology has the potential to exceed this threshold based on improved battery performance and utilization alone.
Daria Saharova, co-founder of the World Fund, said.: “Quantum computing has the potential to be a driving force behind the breakthroughs we need to solve the climate crisis. We are proud to lead this round of funding and support IQM’s ambitions to create a quantum advantage for climate and sustainability goals. This investment is in line with our commitment to only support companies with the highest possible Climate Performance Potential (CPP). The goal is for the companies we fund to save a total of two gigatons of CO2 annually by 2040 — that’s four percent of all current global emissions. IQM has already succeeded in building a strong business focused on high-performance data centers and research labs. We look forward to being part of their growth on the path to global market leadership.”
First investment of the Bavarian ScaleUp Fund launched in 2021
The eight-figure investment by Bayern Kapital, the venture and growth capital company of the Free State of Bavaria, is the first investment of the ScaleUp Fund Bavaria, launched in 2021 for strongly expanding high-tech companies with investments between 10 and 25 million euros. “Quantum computers are a key technology of the future today and Bavaria, with its outstanding competencies in science and industry in the field of quantum technologies, is excellently positioned here,” said Bavarian Minister of Economic Affairs Hubert Aiwanger: “IQM is an active partner of Munich Quantum Valley and is making an important contribution to integrating quantum computers into an environment of high-performance computers and making these computing capacities available to users in science and industry.”
“For the first investment with the ScaleUp Fund Bavaria, we could hardly have wished for a better company with a signal effect for the entire region,” says Dr. Georg Ried, Managing Director of Bayern Kapital. IQM’s presence includes the new quantum computer at the Leibniz Computing Center (LRZ) in Garching near Munich.
About IQM Quantum Computers
IQM is the pan-European leader in building quantum computers. IQM provides supercomputing data centers, laboratories and enterprises with on-site installation of quantum computers and allows full access to this hardware. For industrial customers, IQM offers a quantum advantage through a unique application-specific co-design approach.
IQM is building the first commercial 54-qubit quantum computer in Finland together with the non-profit Technical Research Centre of Finland (VTT), the largest contract research organization in Northern Europe. The IQM-led consortium Q‑Exa is building a quantum computer in Germany. This computer will be integrated with a high-performance supercomputer to accelerate its research performance. IQM employs more than 180 people and has offices in Munich, Paris, Madrid and Espoo.
About World Fund
World Fund is the largest European-focused climate venture capital fund and was founded by Daria Saharova, Danijel Višević, Craig Douglas and Tim Schumacher. From energy, food, agriculture, and land use to building materials, manufacturing, and transportation, the World Fund is investing in European climate technologies with a Climate Performance Potential (CPP) of at least 100 million tons of CO2 emissions saved per year. As an investor, the World Fund argues that startups with an appropriate CPP will be among the most valuable companies of the coming decade. www.worldfund.vc
About Bayern Kapital
Bayern Kapital GmbH, based in Landshut, was founded in 1995 as a wholly owned subsidiary of LfA Förderbank Bayern on the initiative of the Bavarian state government. As the venture/growth capital company of the Free State of Bavaria, Bayern Kapital provides equity capital to the founders of innovative high-tech companies and innovative technology companies in Bavaria. Bayern Kapital manages specialized investment funds with an investment volume of around 700 million euros. To date, Bayern Kapital has invested around 370 million euros of venture capital in around 300 innovative technology-oriented companies from a wide range of sectors, including life sciences, software & IT, materials & new materials, nanotechnology and environmental technology. Bayern Kapital has supported the companies EOS Electro Optical Systems, congatec, MorphoSys, voxeljet, parcelLab, SimScale, proglove, Sirion Biotech and many others, some of which are listed on the stock exchange and are now market leaders in their sectors, from an early stage in the realization of their projects and also in large-volume financing rounds. As a result, more than 8,000 jobs have been permanently created in Bavaria in sustainable companies.