The Silicon Quantum Computing team. Source: Supplied
Tech startup Silicon Quantum Computing has closed a $50.4 million in Series A, with input from CBA, the UNSW, Telstra and the Australian Government. This follows an $83 million seed round in 2017 from the same investors.
The fresh cash injection has resulted in a huge jump in valuation, bringing it to $195.3 million, which is more than double the $82.8 million it was sitting at just last year.
The company was founded in 2017 by former Australian of the Year, Michelle Simmons, a Scientia Professor at UNSW, where its lab also operates.
Last year Professor Simmons openly spoke about targeting $130 million for this round of funding. Unfortunately, the first half of 2023 has been sluggish. While there have been a handful of larger raises, data shows that this has been the slowest funding start to a year since 2019. Roughly $1.5 billion was raised overall, which was just a third of what we saw in the first half of 2022.
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However, Professor Simmons has said she is happy with the result as it has allowed them to retain ownership of more of the business.
“We’ve raised just the right amount of capital to keep us going without having to give too much of the company away,” she told the AFR.
Quantum technology utilises quantum mechanics — the physics of sub-atomic particles — to solve complex problems much faster than traditional computers. In the future, this will aid in the development of new technologies, such as medicine, security infrastructure and improved batteries.
Kim Krogh Andersen, the group executive of product and technology at Telstra, said in a statement, “We’re a big believer in the potential of quantum computing to transform industries and solve some of world’s problems that challenge us today. This potential and our belief in Michelle Simmons and the SQC team is why we’re a foundation investor and continue to support the innovative work they’re doing”.
Brendan Hopper, CBA Chief Information Officer for technology said that the “work being done by Professor Simmons and her team is of national and international significance and we are proud to be supporting the next phase of SQC’s growth”.
According to Silicon Quantum Computing, the capital raise will help them build out its team as well as manufacturing capabilities in Australia for its ‘full stack’ quantum computer.
It will also be targeting error corrections as it develops its commercialised quantum computer so it won’t spit out false results. Error correction involves encoding information across qubits — the basic unit of information in quantum computing — as it exists in multiple states. This is said to lower error rates, which is essential for the commercial use of quantum computers.
The company is hoping to see its product be commercialised within three to five years time.
Quantum is certainly on the uptick in Australia, with Quantum Brilliance also netting more than $25 million back in February for its miniaturised quantum computers that use synthetic diamonds to run at room temperature.
And in May the Labor government unveiled Australia’s first quantum strategy, predicting that quantum-based industries could create 19,400 direct jobs and $5.9 billion in revenue by 2045.
The May Budget also revealed plans to establish an Australian Centre for Quantum Growth to support the commercialisation of Australia’s quantum industry.
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