London-based Phasecraft, a quantum algorithms company, has secured Series B funding. The company looks to advance its work on quantum computing applications.
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London-based Phasecraft, a quantum algorithms company, announced it has raised $34M (nearly €29M) in Series B funding. The proceeds will support the company’s work on quantum computing applications.
The round was co-led by Plural, Playground Global, and Novo Holdings’ Quantum Fund, which made its first direct investment in quantum software. Other investors included LocalGlobe, AlbionVC, and Parkwalk Advisors.
Developing quantum computing foundations
Quantum computing hardware and software are progressing towards commercial use. Phasecraft is contributing through the development of algorithms that can run across different hardware platforms.
The company has established partnerships with Google Quantum AI, IBM, Quantinuum, and QuEra to advance efforts towards quantum advantage.
Phasecraft applies a method that integrates quantum and classical computing. This approach enables Noisy Intermediate Scale Quantum (NISQ) devices to address problems that conventional computing cannot manage, without waiting for fully error-corrected hardware. This method brings quantum computing applications into industry settings earlier than previously projected.
The company is working with Johnson Matthey in materials development, Oxford PV in solar technology, the UK’s National Energy System Operator (NESO), and telecommunications provider BT.
Phasecraft was founded in 2019 by Toby Cubitt, Ashley Montanaro, and John Morton, who have led research groups at University College London and the University of Bristol. The co-founders have built a team that includes members with experience at AWS, Johnson Matthey, and Goldman Sachs.
Last year, Phasecraft opened a Washington D.C. office focused on quantum research and development, led by Professor Steve Flammia.
Capital utilisation
Phasecraft’s new funding brings its total to more than $50M, including grants. The company will use the proceeds to increase R&D activity and extend collaborations with industry partners, with a focus on delivering quantum-based solutions for end users.
Ashley Montanaro, co-founder and CEO of Phasecraft, says, “We’re actively creating quantum advantage at Phasecraft. Our algorithms are delivering meaningful results now, whether it’s simulating the physics of complex materials or optimising the structure of a large energy network, whilst our partnerships with the world’s top quantum hardware providers increase the impact our algorithms will have for commercial applications.”
“We’re delighted to have the backing of our visionary investors such as Plural, Playground Global, and Novo Holdings, to support us on the mission to bring quantum advantage to the world faster.”
Phasecraft is designing algorithms informed by theoretical physics, computer science, numerical simulations, and knowledge of quantum hardware.
The company’s work is being applied in material science through more efficient material simulation, in biological research by modelling biochemical processes relevant to drug development for genetic conditions, and in energy by optimising network operations.
What do the investors have to say?
Ian Hogarth, partner at Plural, says, “Phasecraft is revolutionising the quantum landscape in ways that were previously thought impossible. Its hardware-agnostic approach means it’s been able to work with several of the world’s most powerful computing devices, creating algorithms that are more efficient by factors of millions and that are now helping to solve real-world problems like material discovery and the optimisation of our energy networks.”
“It’s to the credit of the best-in-class team that Ashley and Toby have built that some of the biggest tech companies in the world, including Google and IBM, see Phasecraft as the way to accelerate the impact of their own devices. I’m incredibly excited to continue supporting Phasecraft not just as Chairman, but as an investor as well.”
Plural is an early-stage investment fund that provides capital to founders developing technology ventures. The fund launched in June 2022 to connect European founders with investors who have relevant experience. Based in Tallinn, Estonia, and London, UK, Plural aims to influence economic growth in Europe, address systemic risks, and reduce the global opportunity gap through the companies it supports.
Peter Barrett, general partner at Playground Global, mentions, “Today, we are living in a world without quantum materials, oblivious to the unrealised potential and abundance that lie just out of sight. With advancements in quantum algorithms from Phasecraft, we are poised to shift from discovery to design, entering an era of unprecedented dynamism in chemistry, materials science, and medicine.”
Playground Global is a VC firm with $1.2B in assets under management. The firm invests in early-stage startups working on next-generation computing, automation, energy transition, and engineered biology. Founded in 2015, Playground provides technical and operational support to help founders develop ideas into companies.
Jeroen Bakker, Partner at Novo Holdings, adds, “The impact quantum computing will have on the world is undeniable, particularly in the life sciences. Quantum algorithms offer tremendous potential for molecular simulation to predict drug efficacy and optimise design. This is why we are excited to make our first quantum software investment from our new Quantum Fund in Phasecraft.”
“We’re excited about Phasecraft’s ability to enable healthcare breakthroughs that could save millions of lives while reducing R&D timelines from decades to years.”
Novo Holdings manages the assets of the Novo Nordisk Foundation and aims to generate long-term returns to support health and sustainability. Wholly owned by the foundation, it is the controlling shareholder of Novo Nordisk A/S and Novonesis A/S and manages a portfolio including equities, bonds, real estate, infrastructure, and private equity.
The company invests in life science companies at all stages through its Seed, Venture, Growth, Asia, Planetary Health, and Principal Investments teams. As of year-end 2024, total assets were €142B.
