Finland’s Quantum Computing Unicorn, IQM, Secures $300M for Global Expansion and R&D Push

Finnish quantum computing startup IQM has achieved unicorn status after securing over $300 million in a Series B funding round, led by Ten Eleven Ventures, a U.S.-based investment firm specializing in cybersecurity.

IQM, an offshoot of universities, develops quantum computers designed for on-premises installations and a cloud platform leveraging this hardware. The company has already supplied its quantum computers to enterprises across APAC and the U.S., with Europe remaining its primary market.

The fresh funds will be utilized for both commercial expansion and research aimed at meeting the evolving demands of the quantum computing market. To secure U.S. clients amidst competition from tech giants like IBM, Google, and Microsoft, IQM recognizes the necessity to expedite its roadmap for hardware and software development.

This involves increased investment in chip fabrication facilities, as well as software development and error correction research. Error correction, crucial for detecting and rectifying inherent errors in quantum systems, is a current hot topic due to the shifting definition of what constitutes a competitive quantum computer—computing a large number of qubits is less of a priority today compared to quality and reliability.

Striking a balance between quantity and quality will be essential for creating practical applications of quantum computing, which until now have remained theoretical. However, with quantum advances no longer appearing solely science-fictional, companies like IQM are striving to ensure their computers offer tangible benefits sooner rather than later.

Beyond Finland, Germany hosts the majority of IQM’s 300 employees, including a substantial R&D unit based in Munich. With the new funding, IQM aims to expand its team and increase commercial traction, particularly in the U.S. The company may also consider becoming more operational in the U.S., potentially implementing local assembly to circumvent tariff issues.

Recently, IQM supplied an on-premise quantum computer to the Oak Ridge National Laboratory, a science lab operated by the U.S. Department of Energy. Ten Eleven Ventures, with its extensive U.S. network, was a strategic investor for the startup.

The Series B round also attracted investments from Finnish investment firm Tesi, Schwarz Group, Winbond Electronics Corporation, EIC, Bayern Kapital, and World Fund. This brings IQM’s total funding to date to $600 million. Co-CEO and co-founder Jan Goetz attributes the size of the round to the commercial and technical milestones achieved by the startup in recent months.

IQM now stands as the global leader in quantum computer sales across major continents, although the sector still has a significant way to go before reaching a broader audience. Nonetheless, IQM’s 54-qubit chips are already being utilized at computing centers, research labs, universities, and enterprises, with plans to deploy the first 150-qubit systems on the horizon.