Xanadu Quantum Technologies may be on the verge of another $100 million (US) financing round, according to a story in the Globe and Mail.
The Canadian newspaper, citing three unnamed sources, reports that Georgian Partners will lead the round and would spot valuation of the Toronto-based quantum computer pioneer at $1 billion, more than double its estimated size if the round is successful.
According to TQI’s data platform, Xanadu investors include: Bessemer Venture Partners, Business Development Bank of Canada, Capricorn Investment Group, Creative Destruction Lab, DARPA, Georgian Partners, Golden Ventures, In-Q-Tel, OMERS Ventures, Radical Ventures, Real Ventures, Silicon Valley Bank, Sustainable Development Technology Canada, Tiger Global and Tim Draper.
Xanadu is a full-stack quantum computing company. It has built a photonic quantum computer and developed an open-source quantum software platform called PennyLane. The company offers cloud-based access to its devices for several clients.
According to the Globe and Mail’s three unnamed sources, the deal has yet to be finalized, but they believe the main investors have committed a majority of the funds necessary for the deal to go through.
Georgian Partners is Canada’s largest growth equity investment firm, according to the paper.
Just last year, Xanadu raised $100 million in a round led by venture capital giant Bessemer Venture Partners.
Xanadu is part of a rapidly growing quantum computer ecosystem in Canada and an expanding stable of quantum unicorns. D-Wave Systems Inc., founded in 1999 and arguably THE pioneering quantum computer company, recently announced it would use a special acquisition company — SPAC — approach to enter public listing. D-Wave’s funding is set at around $554 million, according to TQI, and its valuation is pegged at a little over $1 billion.
The $100 million deal, if it goes through, should be a bright spot on a dimming fund-raising environment for quantum startups. Rising interest rates, vulnerable supply chains and stock market volatility, along with accusations that the technology is being hyped, are dragging on the momentum of what was — just months ago — an explosive sector. The funding also suggests that economic conditions may not be as bad as projected.
In Xanadu’s previous Series B funding round, Christian Weedbrook, founder and CEO, connected the level of funding with confidence in their technology — and, by extension, perhaps, in the potential of quantum itself — from some of the world’s most astute investors.
“The strong interest from VC firms to fund this Series B financing demonstrates significant market confidence in Xanadu’s photonic approach and our world-class team,” said Christian Weedbrook, in a statement. “We believe this confidence is grounded in the significant advantages offered by photonics: The ability to leverage preexisting foundries and off-the-shelf optical components, and the capability to naturally network photonic chips together to form a larger quantum computer with one million qubits”.