Who pays, for what, and the pain removed
Quantum hardware providers and early enterprise R&D teams are paying for algorithms that make today’s noisy quantum machines do useful work. The pain is clear: near-term quantum devices are fragmented across vendors and still error-prone, making it hard to justify pilots that survive beyond a demo.
Against a cautious funding backdrop for quantum, Phasecraft’s latest raise is a notable vote of confidence that the commercial path will be led by software that runs across multiple machines rather than bets on a single hardware roadmap.
Deal news
UK-based Phasecraft has secured EUR 47.5 million in funding, with the round co-led by Plural, Playground Global and Novo Holdings’ Quantum Fund, and participation from existing investors including AlbionVC, LocalGlobe, Latitude and Parkwalk Advisors.
The company previously announced a Series B of $34 million (around EUR 31 million) in September 2025, and has now brought total funding to more than $50 million, including grants, according to reported figures.
A key signal in this round is Novo Holdings making its first direct investment in quantum software, via its Quantum Fund.
Why this is against-trend
Quantum has spent the last two years under pressure from longer timelines, ambiguous near-term ROI, and a shift in venture appetite toward faster payback software categories. In that context, a sizeable round for a quantum algorithms company stands out.
The round also underlines a subtle change in what investors want to underwrite. Instead of financing another hardware race, the capital is flowing to a layer that can compound value even as hardware architectures evolve.
Strategic lens: software as the portability layer
Phasecraft develops hardware-agnostic quantum algorithms designed for Noisy Intermediate-Scale Quantum (NISQ) devices. The positioning matters because it targets what is commercially available now, rather than waiting for fault-tolerant machines.
Phasecraft also works with multiple leading hardware ecosystems, including Google Quantum AI, IBM, Quantinuum and QuEra. In a market where each provider has its own stack, error profile, and performance trajectory, a cross-platform algorithms layer can reduce customer lock-in to any single hardware bet and help enterprises run more consistent evaluation programs.
From a go-to-market perspective, “hardware-agnostic” is not just a technical claim. It is a way to sell into a crowded, partner-led market:
- Channel leverage: collaboration with major hardware providers can create a distribution path, but it also requires careful alignment on integration and co-selling incentives.
- Switching costs: algorithm performance improvements and workflow integration into customer R&D pipelines can create stickiness, even if the underlying compute provider changes.
- Sales cycle reality: near-term quantum use cases typically sit in advanced R&D budgets, with long evaluation periods and high proof thresholds. The winners will be those who package repeatable workflows and measurable performance gains.
What the capital is likely to support
The company has not detailed a full use-of-proceeds plan in the available reporting. Based on the round’s composition and Phasecraft’s product focus, likely focus areas (inference) include:
- Deepening productisation of algorithms into deployable software workflows that can be benchmarked across NISQ devices.
- Expanding partnerships and integrations across hardware providers, where “works on multiple backends” needs constant engineering maintenance.
- Commercial capacity to convert pilots into multi-year R&D relationships, particularly in compute-intensive domains.
Phasecraft has highlighted applicability in areas such as materials, biology and energy, where even incremental computational advantages can be valuable if they integrate into existing research pipelines.
Competitive context
Phasecraft operates in a quantum software landscape that includes platform providers, specialist algorithm developers, and in-house efforts at hardware companies. The practical competition is often not another startup, but the customer’s decision to pause quantum investment until hardware reaches clearer performance thresholds.
This is where Phasecraft’s near-term NISQ framing is strategically important: it attempts to shift the conversation from “future breakthrough” to “useful now,” while still benefiting from hardware improvements over time.
What this enables
- More funding and validation for quantum software as a value-capture layer, not just quantum hardware.
- Acceleration of cross-hardware algorithm deployment, helping customers avoid being trapped in a single vendor’s stack.
- A stronger partner posture with Google Quantum AI, IBM, Quantinuum and QuEra as quantum adoption remains ecosystem-driven.
What to watch
- Whether Phasecraft can turn hardware collaborations into repeatable commercial contracts, not just technical partnerships.
- Evidence of benchmarked performance on real-world workflows that customers can justify in R&D budgets.
- How Novo Holdings’ entry into quantum software influences follow-on investor appetite in a still cautious sector.
- The pace at which NISQ capabilities improve, and whether Phasecraft’s algorithms keep delivering practical advantage on near-term devices.