Austrian startup Quantum Industries raises $10M to secure critical infrastructure from cyberattacks and quantum threats

Austrian startup Quantum Industries has raised $10 million to bring its cybersecurity technology to market, aiming to protect critical infrastructure from cyber threats and the looming risks of quantum computing. The funding round was led by Sparring Capital Partners and Findus Venture, two well-known European venture firms, along with global asset manager KGAL, which has a strong focus on infrastructure investments.

With this investment, Quantum Industries is adding Dr. Wolfgang Bernhard to its board. Bernhard, a former Daimler AG board member and ex-CEO of Daimler Trucks, will represent Sparring Capital alongside other key industry and investment figures. The company has also secured grants from government innovation agencies, strengthening its research and development efforts.

The fresh capital will go toward scaling operations and bringing its quantum communication technology to real-world applications. QI’s technology is based on Nobel Prize-winning physics and is designed to build quantum-secure communication networks across vast distances—critical for national security and vital infrastructure.

The urgency around cybersecurity is growing. Microsoft recently projected that advanced quantum computers capable of breaking current encryption standards are just years away, not decades. This means organizations need to act now to secure their systems before quantum technology makes today’s encryption obsolete.

Cybercrime is projected to cost over $10 trillion by 2025, and more than half of these attacks target critical infrastructure. QI’s technology offers a unique solution by providing unbreakable security for communication networks, addressing both conventional cyber threats and the upcoming challenges posed by quantum computing.

Founded by Dr. Felix Tiefenbacher and Dr. Rupert Ursin, the physicists behind groundbreaking research, Quantum Industries leverages quantum entanglement to secure communications. This method makes hacking fundamentally impossible, as any interference would instantly alter the system. With the longest coverage distance in the industry, QI’s solution stands out as the only one capable of creating a continent-wide quantum-secure network.

Commenting on the funding, Dr. Felix Tiefenbacher, co-CEO and co-founder of Quantum Industries GmbH, said:  “We are excited to have the backing of both private investors and public institutions as we push forward the next evolution of quantum-secure communications. The cost of cyberattacks on critical infrastructure is massive, and organizations cannot afford to take risks with security.”

Dr. Rupert Ursin, co-CEO and co-founder, also added: “We have built on more than 40 years of Nobel Prize-winning research to set a new standard in quantum-secure communications. From the start, our goal has been to establish a global leader in this space. With this investment, we now have the resources and support to make that vision a reality. Our investors share this belief, and together, we are working to secure the future of critical infrastructure worldwide.”

Quantum Security Gets a $10M Boost as Quantum Industries Builds Unhackable Networks

Europe ranks second only to China in government investment in quantum technology, putting it ahead of the U.S. in this space. Given the current geopolitical landscape, QI has a clear opportunity to position itself as Europe’s leading force in quantum-secure communications.

QI’s Quantum Key Distribution (eQKD) technology, based on quantum entanglement, provides encryption through the laws of physics rather than mathematical algorithms, making it impervious to hacking attempts.

The company is leading efforts to build a quantum-secure communication backbone across Europe. Its approach offers the highest level of security over the longest distances while keeping costs lower than existing alternatives. As a key supplier to the European Quantum Communication Infrastructure (EuroQCI) program, QI is already working with major infrastructure providers to implement next-generation secure communication networks. In its second year of operations, the company has secured 1.8 million euros in booked sales.

With the growing demand for computing power, QI’s technology is also well-suited for the next wave of data centers, enabling secure connections between multiple quantum computers. The company’s system produces record numbers of entangled photons, a key component for quantum-secure communication, allowing for secure and efficient interconnectivity.