Silicon Quantum Computing Closes Series A $50.4M, Far From Its Initial $130M Goal

Insider Summary

• Silicon Quantum Computing reportedly closes $50.4 million (AUS) in Series A.
• Last year, company executives said they were shooting for about $130 million.
• Investors include the Commonwealth Government, Commonwealth Bank of Australia (CBA), Telstra and the University of New South Wales.

Silicon Quantum Computing reportedly closed $50.4 million in Series A, according to company release.

Investors in the round include the Commonwealth Government and some of Australia’s leading institutions, including the Commonwealth Bank of Australia (CBA), Telstra and the University of New South Wales (UNSW).

According to the statement, the Series A round is priced at $1.75 per share, bringing SQC’s valuation to around $195.3 million, which is more than double its previous valuation of $82.8 million.

“SQC has globally unique technology for manufacturing processors with atomic precision, and this approach to building a quantum computer has many advantages over our multinational competitors,” said Michelle Simmons, CEO of SQC, in a statement. “History has shown that new technology ecosystems cluster around the producing organizations. Backed by this funding and our highly talented team of physicists and engineers from around the world, SQC is well positioned to become the central hardware manufacturing hub for the quantum computing industry, both in Australia and globally.”

The company received praise from investors and partners.

Kim Krogh Andersen, Group Executive Product & Technology at Telstra, said, “We believe strongly in the potential of quantum computing to transform industries and solve some of the world’s problems that challenge us today. This potential and our belief in Michelle Simmons and the SQC team is why we are investors of the foundation and continue to support the innovative work they do.”

Brendan Hopper, CBA’s Chief Information Officer for technology, was positive about SQC’s future business prospects.

“As early stage Investors in SQC, we can see the economic and business opportunities that can be unlocked through the development of a locally based quantum computing sector by a recognized Australian leader in this field,” Hopper said in a statement. “The work done by Professor Simmons and his team is of national and international significance and we are proud to support the next phase of SQC’s growth.”

Below Last Year’s Target

The increase is still more than a third of the $130 million the company targeted last year when they began raising wages. But, that’s a number, according to the startup’s executive team, that they can accept.

“We have raised just the right amount of capital to keep us going without having to give too much away from the company,” he told AFR.

SQC Chair, Stephen Menzies, regarding the overall size of SQC’s salary increase, said: “We are pleased to achieve this increase in such a tight funding environment. In a period where capital is costly, we see it profitable to delay a bigger pay rise.”

The Australian government released it National Quantum Strategy in May 2023, along with the updated List of Critical Technologies for National Interestwhere quantum technology is a priority area.