The venture capital landscape for quantum computing is undergoing a significant shift, with a new €60m fund emerging to target early-stage startups in the space. QDNL Participations, a European VC firm, has reached a €25 million first close on its proposed fund, which aims to capitalize on the growing interest in quantum computing.

This development comes on the heels of a 50% decline in VC investment in quantum computing last year, according to the 'State of Quantum 2024' report. The report revealed that investment dropped from $2.2 billion in 2022 to $1.2 billion, with funds switching their focus to generative AI. However, government spending on quantum computing is predicted to hit $40 billion over the next decade, presenting a significant opportunity for investors.

QDNL Participations' new fund is designed to tap into this trend, with plans to expand beyond Europe and make investments more internationally. The firm's previous €15 million fund focused on the Dutch quantum ecosystem, backing startups including Qblox, QuantWare, QphoX, and Q*Bird. Ton van 't Noordende, General Partner at QDNL Participations, emphasized the global nature of quantum computing, citing the incredible research done in the past decade and the emergence of a new startup ecosystem.

Van 't Noordende noted that over 20 governments have invested more than $42 billion in quantum computing over the last two or three years, building up the necessary infrastructure, clean rooms, and facilities. This investment has effectively de-risked the technology, creating a more favorable environment for startups to thrive.

The Netherlands is positioning itself as a key player in the quantum computing ecosystem, with the government (backed by EU financial support) launching an initiative called Quantum Delta NL. This initiative has also invested in QDNL Participations, further solidifying the country's commitment to the field.

QDNL's team boasts an impressive lineup of experts, including quantum computing pioneer Chad Rigetti as venture partner in the US and specialist quantum VC Kris Kaczmarek in London. They are joined by advisors Nadia Carlsten (CEO of the Danish Centre for AI Innovation) and Charles Marcus of the University of Washington.

Despite the initial skepticism expressed by Mark Zuckerberg and Nvidia's Jensen Huang earlier this year, quantum computing appears to be gaining momentum. Nvidia recently announced a Quantum exclusive Nvidia Day at its upcoming event in March, marking a significant shift in the company's stance on the technology.

As the quantum computing landscape continues to evolve, QDNL Participations' new fund is well-positioned to capitalize on the growing interest in the field. With government spending predicted to reach $40 billion over the next decade, the opportunities for startups and investors alike are vast. As the industry moves forward, it will be fascinating to see how this new fund contributes to the development of quantum computing.