Innovative Unicorn IQM Looks Beyond Europe for Quantum Computing Growth

Finnish quantum computing startup IQM has reached unicorn status, having raised over $300 million in a Series B funding round led by Ten Eleven Ventures, a U.S.-based investment firm that focuses on cybersecurity.

Originating as a university spinout, IQM designs quantum computers suited for both on-site installations and a cloud platform leveraging this technology. While its quantum systems have been sold to customers in the APAC region and the U.S., Europe remains its strongest market.

The goal of this funding round is to drive commercial growth and enhance R&D to match the evolving market perspective on applying breakthroughs in quantum science to practical use cases.

To attract U.S. clients in a market dominated by giants like IBM, Google, and Microsoft, IQM recognizes the urgency to advance both hardware and software rapidly. Co-CEO and co-founder Jan Goetz emphasizes that this requires increased investment in the company’s chip fabrication and a commitment to software development and error correction research.

Error correction—the identification and rectification of inherent errors in quantum systems—is a key topic as competition in the quantum computing field intensifies. “It’s a trade-off between qubit quantity and quality and reliability,” Goetz explained.

Managing this trade-off is vital for creating tangible quantum computing applications; ideas once considered futuristic are now nearing realization. Companies like IQM strive to ensure their systems provide practical benefits soon.

In addition to reliability, IQM’s strategy aligns with the industry’s focus on the software layer essential for making quantum computing accessible to initial end-users: experts with advanced degrees outside the quantum computing field.

A major software initiative for IQM is the development of a developer platform, which Goetz describes as “an SDK for quantum computing,” aimed at encouraging a large number of developers to engage with their systems. This platform will utilize Qrisp, an open-source project from the Berlin-based FOKUS research institute, as an alternative to IBM’s approach.

In addition to its headquarters in Finland, Germany hosts a significant portion of IQM’s 300 employees, with a large R&D unit based in Munich, as shared by Goetz. “With this funding round, we plan to expand our team and amplify our commercial efforts, especially in the U.S.”

Looking forward, the company is considering becoming “a bit more operational in the U.S.,” according to Goetz, who mentioned that tariffs could affect this decision. “One possibility is that as we sell more systems in the U.S., local assembly could become an option.”

Despite these considerations, IQM’s primary focus remains on U.S. sales. Recently, the firm sold an on-premises quantum computer to the Oak Ridge National Laboratory, operated by the U.S. Department of Energy.

As noted by Alex Doll, co-founder and managing general partner of Ten Eleven Ventures, there’s a strong alignment between their investment philosophy and IQM’s trajectory. “Quantum computing will play a vital role in the next wave of cybersecurity and computational innovation,” Doll stated, as he joins IQM’s board following the funding round.

Goetz emphasized that Ten Eleven Ventures’ extensive U.S. network made it an ideal partner for the startup.

The Series B funding round also saw participation from Finnish firm Tesi, as well as Schwarz Group, Winbond Electronics Corporation, EIC, Bayern Kapital, and World Fund. With this latest round, IQM’s total funding has now reached $600 million.

Goetz asserts that the scale of this funding is justified based on the commercial and technical milestones the startup has achieved in recent months. “We are now the leading company in terms of quantum computers sold globally across all major continents,” he remarked.

In absolute terms, this remains relatively modest—the company achieved a production milestone of 30 quantum computers in late 2024, reflecting that the sector still has significant growth ahead before achieving widespread acceptance.

Nonetheless, IQM’s 54-qubit chips are already operational at computing facilities, research laboratories, universities, and enterprises. Goetz noted that the company is set to launch its first 150-qubit systems, which he views as significantly more critical than IQM’s unicorn status.