Quantum Computing Firm IQM says it has raised $320 million in fresh funding to boost its investment in technology and commercial growth.
The startup, headquartered in Espoo, Finland, was founded in 2018 by a team of scientists. Google and IBM It is being built in the US
Quantum computers are machines that use the laws of quantum mechanics to solve problems that are too complicated for classical computers that store information in bits (one and zeros). Quantum computers use qubits, or “qubits.” This can be zero, one, or in between. This involves processing far more data to facilitate breakthroughs in areas such as medicine, science, and finance.
IQM’s funding round was led by US cybersecurity-focused investment company Ten Eleven Ventures, but Finnish venture capital firm Tesi also invested. According to co-founder Jan Goetz, it will earn you the status of the company “Unicorn” seven years ago. That means it’s worth over $1 billion.
The investment emphasizes strengthening the fuss among investors around the quantum computing space. Stocks like Quantum Firms that are publicly available Aeon Q and D-wave quantum We’ve seen large gatherings over the past year. IONQ stock has grown nearly 480% over the past 12 months, with D-Wave Quantum stock exceeding 1,400%.
“If you compare us directly with companies listed on Nasdaq and take KPIs like people, revenue, patents, things like this, and we can actually compete at this level,” Getz told CNBC in an interview.
Goetz said IQM has come a long way since the early days of building the company. The company has 350 employees worldwide, building finance and sales operations and machines on Espoo.
Europe vs. USA
There are currently many European companies working on quantum computers, including IQM, Pasqual and Quandela. However, they have not yet achieved the size of their US counterparts.
In a speech earlier this year, European Commission’s high-tech chief Henna Wilkkunen said European quantum computing startups are struggling to expand due to a lack of private capital, noting that the European Union has only received 5% of global private funds compared to 50% in the US.
“If you look at what’s going on in Europe in these deep technical fields that come out of universities, of course, there are so many good universities in Europe, so there are quite a few startups.
“Now, I think there’s a risk that if a US company has a very high rating, they’ll just use their high stock prices to drive M&A integration.” In fact, IONQ in June announced that it would buy UK Quantum Computing Startup Oxford Ionics for around $1.1 billion in trading, which is primarily stock.
IQM currently sells a total of 15 quantum computers so far. The company sells two major products. The company sells it to universities with more affordable quantum computers called flagship machines, Radiance and Spark.
From now on, IQM plans to move beyond hardware alone. Goetz said the company will use some of the raised cash to develop a software platform aimed at making quantum computing accessible to developers who are not experts in the field.
Another major goal of IQM is global expansion with plans to expand its commercial and sales operations in the US and Asia. Goetz said IQM has previously sold two systems in Asia. One in Taiwan and the other in Korea – recently sold the first machine in the US.
While the initial public offering could be an IQM option, Goetz argued that the company has no IPO plans for now, adding that there is still a “attractive route” in the private market to raise capital.
The ultimate goal, he said, is to “build a sustainable and profitable business, actually stay it, and make it a kind of company to shape the future of calculations for a long time.”
“We’ll do whatever it takes to make it happen,” Goetz added.
