QphoX raises €8m to bring quantum modem technology to market, building towards the quantum internet

January 17, 2024

• QphoX is building the world’s first Quantum Modem device as a critical step towards scaling quantum computers and establishing a quantum internet, connecting quantum computers across the globe
• The funds will be used to bring its first products to market, helping to push quantum computing towards its commercial potential
• Round led by QDNL Participations, alongside the EIC Fund, and existing investors Quantonation, SpeedInvest, High-Tech Gründerfonds, and Delft Enterprises

17 January 2024 DELFT, NETHERLANDS– Dutch quantum computing company QphoX has raised an €8 million funding round, the largest investment in a quantum company in the Netherlands to date, in a significant development for the country’s fast-growing quantum industry.

The round was led by QDNL Participations. The EIC Fund, and existing investors Quantonation, SpeedInvest, High-Tech Gründerfonds, and Delft Enterprises also participated. The significant investment from the EIC Fund follows the grant from the EIC Accelerator to drive the development of QphoX’s disruptive technology.

QphoX is developing the core hardware required to allow quantum computers to communicate over an optical network. This will enable the scalability of large quantum computing systems within a data center, and ultimately form the backbone of the future quantum internet.

Since raising €2 million in 2021, QphoX has made significant advances in its technology, including recent developments that bring mature quantum computers within reach. The new funds will be used to accelerate product development and prepare QphoX’s technology for integration into commercial systems as it continues its first pilot projects with customers and partners.

QphoX’s core technology centers on the ability to build devices that enable quantum transduction, where (quantum) information can be translated between the microwave and optical domains.

The company has made a number of breakthroughs in its technology recently. In October 2023, QphoX shared its demonstration of optical-frequency readout of superconducting qubits and published peer-reviewed details of its world-leading transducer performance in Nature Nanotechnology, establishing the company as a leader in the emerging field of quantum transduction.

We are very grateful to be entrusted by our investors to build the technology that will enable real quantum computing applications. At the moment, we are the only company with the transduction hardware at a performance level that will allow quantum systems to connect through optical quantum channels. We look forward to working with our partners to scale quantum computers beyond proof-of-concept systems.

Simon Groeblacher, co-founder and CEO of QphoX

Quantum transduction, and the ability to interconnect modular quantum computers over an optical network, is a breakthrough capability that could shift how we think of building large scale quantum computers and the quantum internet. QphoX is the clear leader in this category. We’re thrilled to back them in their mission to build a leading global quantum hardware company.

Chad Rigetti, Venture Partner at lead investor QDNL Participations, who will also join the company’s advisory board

The team at QphoX has demonstrated great skills at taking outstanding science out of the lab and turning it into practical innovation that will benefit a large part of the nascent quantum industry. In return their work has also generated high quality peer-reviewed science and at Quantonation we are very supportive of such a virtuous circle. We’re very happy to continuing supporting the QphoX team and the blooming Dutch quantum ecosystem, and contribute once again making the European Quantum industry a global leader.

Christophe Jurczak, partner at Quantonation

We are very impressed by the quality of QphoX’s team and its unique quantum transduction technology, successfully taken out of the lab. We strongly believe that QphoX’s technology will form the backbone and pave the way towards a future quantum internet and accelerate scaling up of quantum computers. The significant investment in QphoX is a demonstration of the EIC Fund’s commitment to support innovation in the field of quantum computing and bridge the funding gap in capital intensive, high-risk, early-stage, deep tech industry.

Marcin Nowak, Investment Director at European Investment Bank, leading the investment on behalf of the EIC Fund

About QphoX
Based in Delft, the Netherlands, QphoX is building the world’s first Quantum Modem device, to connect quantum computers across a quantum network. The startup’s technology will form the backbone of the future quantum internet, allowing quantum computers to interface at a distance through room-temperature optical interconnects. Backed by investors including QDNL Participations, the European Innovation Council, Quantonation, SpeedInvest, High-Tech Gründerfonds, and Delft Enterprises, QphoX is committed to having a diverse team. The company is proud to have an international and fully gender-balanced workforce. Find out more about QphoX at https://qphox.eu

About QDNL Participations
Backed by Quantum Delta NL, QDNL Participations will invest €15 million into early-stage Dutch quantum computing startups in the coming years. The QDNL Participations fund provides the bridge between the grant-giving phase of research and the ‘patient capital’ phase of venture investment. QDNL Participations provides impactful business and commercial support to transform potentially great technical ideas into obviously great investable companies, helping brilliant technical minds organize leading talent to bring their ideas into the world for the benefit of humanity. Find out more at https://www.qdnlparticipations.nl

About the European Innovation Council (EIC)
The EIC, established under the EU Horizon Europe with a budget of €10bn, is Europe’s flagship innovation program to identify, develop and scale up breakthrough technologies and game changing innovations. EIC provides funding for individual companies through both grants and / or equity investments from the EIC Fund – the venture arm of the EIC, with AuM of €3.5bn. The EIC Fund is managed by an independent fund manager and advised in investment execution and monitoring by the European Investment Bank. For more information, please visit: https://eic.ec.europa.eu

About High-Tech Gründerfonds  
The seed investor High-Tech Gründerfonds (HTGF) finances tech start-ups with growth potential and has supported more than 700 start-ups since 2005. With the launch of its fourth fund, HTGF now has about 1.4 billion euros under management. Its team of experienced investment managers and start-up experts support young companies with expertise, entrepreneurial spirit and passion. HTGF’s focus is on high-tech start-ups in the fields of digital tech, industrial tech, life sciences, chemistry and related business areas. To date, external investors have injected about 5 billion euros of capital into the HTGF portfolio via more than 2,000 follow-on financing rounds. In addition, HTGF has already successfully sold shares in more than 170 companies. 
Fund investors in this public-private partnership include the German Federal Ministry for Economic Affairs and Climate Action, KfW Capital and 45 companies from a wide range of industries. 

Media contact 
High-Tech Gründerfonds Management GmbH 
Tobias Jacob, Senior Marketing & Communications Manager 
T.: +49 228 – 82300 – 121  
t.jacob@htgf.de