UK-based quantum software company Phasecraft has raised US$34 million in a series B funding round co-led by Plural, Playground Global, and Novo Holdings’ Quantum Fund.

The round also included participation from AlbionVC, Latitude, and Parkwalk Advisors.

Phasecraft said the new funding brings its total raised to over US$50 million, including previous grants.

Phasecraft develops hardware-agnostic quantum algorithms and collaborates with firms such as Google Quantum AI, IBM, Quantinuum, and QuEra.

The company said it works with end users in sectors including materials science, energy, and telecommunications, naming Johnson Matthey, Oxford PV, the UK National Energy System Operator, and BT as partners.

The company, founded by academics from UCL and the University of Bristol, opened a quantum R&D office in Washington, D.C. in 2024.

🔗 Source: Phasecraft

🧠 Food for thought

1️⃣ Quantum software funding reflects broader industry momentum despite bubble concerns

Phasecraft’s $34 million raise fits into a significant acceleration in quantum technology investment that began in the late 2010s.

Private funding for quantum companies jumped dramatically from $104 million in 2015-2016 to $450 million in 2017-2018, with at least 52 quantum technology companies receiving private funding globally since 2012 1.

This funding surge occurred even as experts warned about potential investment bubbles in quantum technology, with concerns that current hype could lead to a “quantum winter” similar to past downturns in AI investment if practical applications don’t emerge soon 2.

Phasecraft’s approach of working with existing quantum hardware through partnerships with Google Quantum AI, IBM, Quantinuum, and QuEra, rather than building hardware themselves, positions them to benefit from this investment wave while avoiding some hardware development risks.

2️⃣ Hardware-agnostic strategies enable faster commercial deployment

The company’s decision to focus on algorithms that work across different quantum hardware platforms reflects a strategic shift toward practical quantum applications rather than waiting for perfect hardware.

This approach allows Phasecraft to work simultaneously with multiple quantum hardware providers and deploy solutions using today’s Noisy Intermediate Scale Quantum (NISQ) devices, rather than waiting years for fault-tolerant quantum computers.