The National Reconstruction Fund Corporation has ploughed $15 million of fresh capital into Canberra-based quantum outfit QuintessenceLabs as the dominant lead investor in a $20 million round.
QuintessenceLabs founder and chief executive Vikram Sharma said the funding would accelerate development of its commercial product roadmap, and to build business development capability in its major potential export markets.
The investment is the NRF’s second into an Australian quantum company, following its $13 million investment in diamond processor startup Quantum Brilliance in December.
Early investor Main Sequence led QuintessenceLabs’ $25 million funding round in 2021 with Telus Ventures, with both companies returning for the latest round.
QuintessenceLabs has been a pioneer in quantum enabled cybersecurity software and associated hardware, one of the early commercial markets for quantum product.
The company builds a quantum enabled key generation product, as well as “crypto-agile” key and policy management through quantum key distribution.
Existing customers include JP Morgan Chase, Westpac, Boeing, Northrop Grumman and Raytheon.
“Cybersecurity is one of the earliest commercial markets, and commercial revenues are flowing… and so this capital will certainly give us a very extended runway,” said Dr Sharma, who is also co-chair of the Tech Council’s Australian Quantum Alliance and a member of the Industry department’s National Quantum Advisory Committee.
“We will be deploying [the new capital] towards bringing to market products which are on our roadmap faster, because the market is now developing quite rapidly,” he said
“Having that product available is imperative. [We will] be able to expand our presence in Canberra with the addition of quantum engineers, electronics engineers, software folk and to expand our manufacturing capability.”
All of the company’s R&D work and technology base will continue to be done in Australia, Dr Sharma said.
“But we will be bringing on folk in business development roles in overseas markets to ensure that we can continue to grow important export markets.”
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