Looks like Paris-based Quantonation is not the only quantum-focused venture capital (VC) firm in town anymore, as 2Xn — a $120-million fund headquartered in London and launched in 2021 by Lars Fjeldsoe-Nielsen and Niels Nielsen joins them.
With quantum companies Quantinuum, QuantrolOx and Kvantify in their portfolio, 2Xn is backed by the Danish Growth Fund, several family offices and Ilyas Khan, founder of Quantinuum — where Nielsen is a board member and has coinvested with VCs such as Sequoia, Andreessen Horowitz, Kleiner Perkins, and Y Combinator.
According to the VC’s website, 2Xn offers a unique “best of both worlds” approach that merges the platform service typically seen by institutional investors with the kind of dedicated, hands-on trusted support of angels.
2Xn’s approach is simple:
It backs the founders having the greatest impacts in society as we push towards a quantum future. The fund’s primary focus is on finding and supporting the quantum leaders, while it also invests in the visionaries solving problems across life’s other most vital sectors and services — education, work, mobility, and marketplaces. All sectors which will eventually be made more efficient, effective and impactful by quantum.
• It represents one of the first single GP funds to launch in Europe following a natural evolution of super angels and ex-GPs setting up new funds.
• It places collaboration ahead of deal domination.
• It swaps generalist and catch-all deals in favour of targeting society’s most important sectors.
• It puts the collective success of its partnerships and portfolio ahead of the successes of the individuals.
• It moves at the pace today’s markets and founders demand; and brings together deep and specific sector experience to push forward the sectors of the future.
Investment in quantum technologies has seen significant growth over the last few years. 2021 saw over $2.1 billion of investment according to The Quantum Insider’s quantum market data platform.
2xN’s mission is to create positive network effects for the founders and LPs with its “best of both worlds’ approach” that merges the professionalism and processes of a large fund with the agility and personal nature of super angels.
“The US competition is now here in our backyard,” said Fjeldsoe-Nielsen, the single general partner (GP) of the fund. “It means it’s harder to win deals and be part of the interesting rounds.”
As the landscape of quantum tech becomes more enticing, I think we will see more VCs in the mould of 2Xn and Quantonation established to take advantage of it.