Startup developing quantum security tech for infrastructure raises $10m

March 03, 2025 03:45 PM

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Quantum Industries, an Austrian firm developing quantum secure communications technologies, has secured $10 million in seed funding.

The financing round was led by Sparring Capital Partners, Findus Venture, and asset manager KGAL.

Dr. Wolfgang Bernhard, former Board Member of Daimler AG and CEO of Daimler Trucks, will join the startup’s board representing Sparring Capital.

Quantum Industries claims its technologies are “inherently impossible to hack” because they rely on laws of physics rather than conventional encryption systems that could be vulnerable to quantum computing advances.

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“The financial and societal cost of cyberattacks on critical infrastructure is huge so organisations cannot afford to compromise on security,” said Dr. Felix Tiefenbacher, co-founder and co-CEO of Quantum Industries.

The startup suggested that critical infrastructure will be the target of more than half of all cybercrime attacks in 2025, and plans to commercialise its proprietary Quantum Key Distribution (eQKD) technology based on quantum entanglement principles to protect future key systems.

Quantum Key Distribution (QKD) uses quantum physics principles to create encryption keys that cannot be intercepted without detection, making it theoretically impossible to hack.

Unlike conventional encryption methods that could be broken by powerful quantum computers, QKD creates security through the fundamental laws of quantum mechanics.

The company reports it has already generated €1.8 million in sales during its second year of operation and is working with the European Quantum Communication Infrastructure programme (EuroQCI).

Besides protecting critical infrastructure, Quantum Industries stated its technology can also connect multiple quantum computers within data centres for secure data processing.

Dr. Rupert Ursin, Quantum Industries' other co-founder and co-CEO, said: “We have harnessed more than 40 years of Nobel Prize-winning scientific research to set a new benchmark for quantum secure communications.”