Tel Aviv-based quantum software company Classiq has raised US$110 million in a series C funding round, the largest for the quantum software sector to date.

The investment was led by Entrée Capital, with contributions from Norwest, NightDragon, Hamilton Lane, Clal, Neva SGR, Phoenix, Team8, and other returning investors.

This brings Classiq’s total capital raised to US$173 million.

Classiq plans to use the funds to expand its global presence, boost research and development teams, and improve customer success operations.

Founded in 2020, the company develops software for quantum applications and serves clients like BMW, Citi, Deloitte, Rolls-Royce, and Toshiba.

Its platform is hardware-agnostic and integrates with services like AWS Braket, Microsoft Azure Quantum, Google Cloud, and quantum hardware providers such as IBM, IonQ, and Rigetti.

🔗 Source: Classiq

🧠 Food for thought

1️⃣ Quantum funding has evolved from sporadic small deals to strategic mega-rounds

Classiq’s $110 million round represents a fundamental shift in quantum funding patterns compared to the sector’s early days.

From 2012-2016, all quantum computing startups collectively raised only about $196 million across fewer than 40 deals, with the field dominated by hardware companies like D-Wave1.

By contrast, Q1 2025 alone saw quantum startups secure over $1.2 billion—a 125% year-over-year increase—with a clear trend toward fewer but larger investments in well-positioned companies2.

This dramatic funding evolution reflects growing investor confidence in quantum’s commercial viability, with major rounds recently going to companies like QuEra Computing ($230M Series B) and Quantum Machines ($170M Series C)2.

The concentration of capital in established players signals a maturing ecosystem where investors are backing companies with proven technologies and clear paths to market rather than spreading bets across many early-stage ventures.

2️⃣ Software has emerged as the critical bridge between quantum hardware and practical applications

Classiq’s positioning as “the Microsoft of quantum computing” highlights a crucial shift in the quantum landscape toward software solutions that make quantum capabilities accessible.