Quantum leap: Diraq secures an extra $23 million in Series A

Australian quantum computing startup Diraq has successfully secured $23 million in an extended Series A funding round.

The round was led by Quantonation, the dedicated quantum technology fund, with additional participation from Higgins Family Investments and the University of New South Wales.

It follows a previously announced Series A funding of $30.6 million led by Allectus Capital.

Diraq is on a mission to change the world of quantum computing by handling everything from the creation of the quantum hardware to its final use in real-world applications.

The company plans to use the capabilities of quantum computing and silicon quantum dots to tackle some of the biggest challenges in various industries, offering a powerful, affordable, and small quantum processor.

With more than US$120 million in funding and holding 11 patents, Diraq is using the well-established silicon chip-making process (CMOS) to make getting into the market quicker and cheaper.

The main aim is to pack millions, or even billions, of quantum bits (qubits) onto a single chip, making quantum computing more practical for everyday applications. By utilising the existing infrastructure for chip manufacturing, Diraq is speeding up the progress in computing technology, aiming to lower the costs and energy needed, and unlocking the full potential benefits of quantum computing for society and the economy.

Andrew Dzurak, CEO and founder of Diraq, outlined the strategic allocation of the newly secured funds.

“This new funding will be used to expand our talented team in Australia and launch in the US as well as capitalise on our existing international partnerships,” Dzurak said.

Will Zeng, a Quantonation partner who will join Diraq’s board, expressed enthusiasm for leading the Series A-2 round and underscored the technical goals for the next 18 months.

“The primary technical focus in the next 18 months will be on the development of a device through a standard semiconductor foundry. This milestone will serve as a proof point, solidifying the viability of Diraq’s technology and propelling the company’s ambitious scale-up program aimed at constructing the most powerful quantum computers in the world,” Zeng said.

We’ve seen increased investment into the Australian quantum computing sector over the past 12 months.

This includes a $50 million Series A raise by Silicon Quantum Computing. Quantum Brilliance also snagged $25.7 million, and the University of Queensland’s Analog Quantum Circuits (AQC) launched with a $3 million raise back in October. Diraq itself secured $3 million back in July.

October also saw Quantum startup Q-CTRL partner with TAFE to bring advanced quantum technology training to TAFE students across Australia.

The federal government has also been scaling up its investment. The May 2023 budget included $101.2 million plan aimed at integrating advanced technologies like quantum computing and artificial intelligence into the Australian business sector. This includes the country’s first national quantum strategy, which was announced just ahead of the budget.

Minister for Science and Industry, Ed Husic, also announced $18.5 million in grants to bolster the nation’s quantum computing sector in December.