Quantum Industries Seed Round, March 2025

Quantum Industries, a Vienna-based company specializing in quantum-secure communications, has secured $10 million in seed funding to advance its mission of protecting critical infrastructure from the emerging threats posed by quantum computing. The financing round was led by Sparring Capital Partners and Findus Ventures, alongside KGAL. Dr. Wolfgang Bernhard, a former board member of Daimler AG and CEO of Daimler Trucks, will join the Board of Quantum Industries on behalf of Sparring Capital, along with other industry and investment professionals.

Founded in 2023, Quantum Industries was established to address the increasing risks posed by quantum computing to modern encryption systems. The company's technology is based on decades of research into quantum communication, leveraging quantum entanglement to generate encryption keys that are inherently secure against cyber threats. The company’s co-CEOs, Rupert Ursin and Felix Tiefenbacher, bring a combination of academic and entrepreneurial expertise, having previously worked in quantum research and business development, respectively.

With quantum computers expected to break existing encryption methods within the next three to five years, the demand for quantum-secure communication solutions is becoming urgent. Experts warn that classical encryption techniques, such as RSA and ECC, will soon be vulnerable, potentially exposing sensitive financial transactions, military communications, and confidential corporate data to cyberattacks. Intelligence agencies have already adopted a “store now, decrypt later” strategy, meaning that encrypted data transmitted today could be accessed once quantum computers become sufficiently powerful.

Quantum Industries has developed a proprietary Quantum Key Distribution (eQKD) system, a technology that utilizes quantum entanglement to generate secure encryption keys. Unlike classical encryption, which relies on software-generated keys that are infrequently updated, QI's system produces keys simultaneously and symmetrically across multiple locations. The company’s hardware-based solution consists of a 19-inch data center device that generates quantum-secure encryption keys. By installing two such devices in separate data centers, identical encryption keys can be generated and integrated seamlessly into existing encryption frameworks. This approach leverages existing fiber-optic infrastructure, making deployment efficient and cost-effective.

A key advantage of Quantum Industries' technology is its capability for long-distance quantum communication, a feature that distinguishes it from competitors who primarily focus on short-range solutions. The company’s systems support secure transmissions over distances of up to 350 kilometers, making them particularly well-suited for large-scale networks in Europe and beyond.

Geopolitical factors have also contributed to the growing demand for European-developed quantum security solutions. According to Ursin, Western nations are increasingly prioritizing locally developed technologies over Chinese alternatives, a trend that benefits Quantum Industries. Unlike some competitors who outsource production, Quantum Industries manufactures all its components within Austria. The company has positioned itself as a leader in the European quantum security sector, aiming to retain and expand its technological expertise within the region.

Quantum Industries is already generating revenue by supplying hardware components to the scientific community. It is a key supplier to the European Quantum Communication Infrastructure Programme (EuroQCI) and has secured €1.8 million in sales in its second year of operation. The company recently won a public tender to provide its first full quantum key distribution (QKD) system to Spain, marking a significant milestone in its commercialization efforts.

The funding will enable Quantum Industries to expand its operations, accelerate product development, and support its growing customer base. Dr. Ursin emphasized the importance of this investment in scaling the company’s vision, stating, “We have harnessed more than 40 years of Nobel Prize-winning scientific research to set a new benchmark for quantum secure communications. From day one, our goal has been to establish a global leader in this field. With this investment, we now have the resources and the backing to realize that vision on a global scale.”

The investment partners expressed strong confidence in Quantum Industries’ potential to lead in the quantum security space. Michael Steiner, CEO of Sparring Capital Partners, highlighted the urgency of new cybersecurity standards, stating, “The potential of quantum computing requires new and much higher standards in cybersecurity and encryption. Quantum Industries effectively addresses this emerging need, and we are proud to support them.”

Findus Ventures founder and CEO Christian Federspiel also emphasized Europe’s leadership in quantum technology, noting, “Quantum technology will be a decisive force over the following decades and remains one of few areas of technology in which Europe is globally leading. QI and its world-class team are the prime example in this context as they have developed and are commercializing the most potent quantum key distribution system globally available.”

Quantum Industries is actively patenting key technologies to enhance the robustness and deployability of its devices. According to Tiefenbacher, the company is working to miniaturize its entangled photon sources to the point where they can be shipped in an envelope and function immediately upon connection. The company aims to continue expanding its role in securing global communications, particularly for critical infrastructure and government agencies.