The European Investment Fund (EIF) has invested €30 million ($35m) in Quantonation II, a French early-stage venture capital fund targeting quantum and ‘deep physics’ startups.

The funding forms part of the wider InvestEU strategy that aims to close the equity gap faced by early-stage “innovative companies in underserved sectors.”

Describing itself as the “world’s only physics-focused fund,” Quantonation II launched in 2023 and is headquartered in Paris, France, and in Boston, US.

The fund’s predecessor, Quantonation I, was established in 2018 and closed in 2022 with €91m ($108m) assets under management, including investments in Orca Computing, Pasqal, and QphoX.

Quantonation II plans to build a €200m ($237m) fund to support 25 ‘high potential’ companies and five venture studios focused on quantum computing, sensing, and other deep-tech applications. To date, its investments include Diraq, Qblox, and Quantum Signals.

“Investing in Quantonation II allows us to support European companies at the forefront of quantum technology,” said Marjut Falkstedt, CEO of the EIF. “By backing this fund, we are reinforcing our commitment to strengthening Europe’s technological sovereignty and nurturing high-potential sectors that require specialized expertise.”

Olivier Tonneau, Partner at Quantonation, added: “We are proud to partner with the EIF in this new chapter for quantum innovation in Europe. Their €30 million investment into Quantonation II is a strong signal of trust and support for our mission to turn European scientific excellence into globally leading companies.”