Quantum computing a step closer to solving real-world challenges thanks to $34 million funding

Press release issued: 2 September 2025

A pioneering quantum computing company co-founded by academics from the University of Bristol and University College London (UCL) has landed $34 million in funding to accelerate its breakthrough work to transform quantum computing’s theoretical promise into practical applications.

Phasecraft’s cofounders, Professors Toby Cubitt, Ashley Montanaro, and John Morton, have world-leading records in quantum computing including decades leading top research teams at the University of Bristol and UCL.

The team is developing hardware-agnostic quantum algorithms for material discovery, chemistry applications, energy networks, and logistics optimization, providing quantum solutions suitable for adoption in the near future.

Phasecraft’s latest round of funding was co-led by Plural, existing investor Playground Global, and Novo Holdings’ Quantum Fund in its first direct quantum software investment, the Series B round also included participation from existing investors AlbionVC, Latitude and Parkwalk Advisors.

Tackling inaccessible problems

Quantum computing hardware and software are converging towards commercial utility, which is only possible by leveraging ultra-efficient algorithms, like Phasecraft’s. Its unique algorithms are hardware-agnostic, and partnerships with leaders such as Google Quantum AI, IBM, Quantinuum, and QuEra are enabling the company to push even faster towards quantum advantage.

The company’s quantum-enhanced approach uses quantum computing as a partner to standard computing to overcome its limitations and enables today’s Noisy Intermediate Scale Quantum devices (NISQ) to tackle previously inaccessible problems, rather than waiting for perfect hardware. This brings quantum applications to industry sooner than anticipated. Phasecraft is already working with end-users such as specialty materials developer Johnson Matthey, solar cell developer Oxford PV, the UK’s National Energy System Operator (NESO), and leading telecommunications provider BT.

The new funding, which brings the total raised to over $50M including grant funding, will allow the company to double down on its R&D breakthroughs and expand industrial efforts, building real-world solutions for end users.

Ashley Montanaro,co-founder and CEO of Phasecraft, and Professor of Quantum Computation in the School of Mathematics at the University of Bristol, said:“We’re actively creating quantum advantage at Phasecraft. Our algorithms are delivering meaningful results now, whether it’s simulating the physics of complex materials or optimizing the structure of a large energy network, whilst our partnerships with the world’s top quantum hardware providers increase the impact our algorithms will have for commercial applications.

“We’re delighted to have the backing of our visionary investors such as Plural, Playground Global, and Novo Holdings, to support us on the mission to bring quantum advantage to the world faster.”

Novel insights driving quantum developments 

By designing algorithms based on novel insights from theoretical physics and computer science, coupled with knowledge gained from extensive numerical simulations and a deep understanding of quantum hardware, Phasecraft’s work is already gaining momentum. Its work is addressing areas such as material science, by making simulating materials millions of times more efficient; biological research by applying quantum computing to key biochemical processes relevant to drug development for genetic conditions; and energy resilience by optimizing energy networks.

Phasecraft’s cofounders have built an unrivaled team featuring leaders formerly at AWS, Johnson Matthey, and Goldman Sachs. Phasecraft opened a Washington D.C. office for quantum R&D last year, led by Professor Steve Flammia.

Ian Hogarth, partner at Plural, said:“Phasecraft is revolutionizing the quantum landscape in ways that were previously thought impossible. Its hardware-agnostic approach means it’s been able to work with several of the world’s most powerful computing devices, creating algorithms that are more efficient by factors of millions and that are now helping to solve real-world problems like material discovery and the optimization of our energy networks.

“It's to the credit of the best-in-class team that Ashley and Toby have built that some of the biggest tech companies in the world, including Google and IBM, see Phasecraft as the way to accelerate the impact of their own devices. I’m incredibly excited to continue supporting Phasecraft not just as Chairman, but as an investor as well.”

Peter Barrett, general partner at Playground Global, explained:“Today, we are living in a world without quantum materials, oblivious to the unrealized potential and abundance that lie just out of sight. With advancements in quantum algorithms from Phasecraft, we are poised to shift from discovery to design, entering an era of unprecedented dynamism in chemistry, materials science, and medicine.”

Jeroen Bakker, Partner at Novo Holdings, added: “The impact quantum computing will have on the world is undeniable, particularly in the life sciences. Quantum algorithms offer tremendous potential for molecular simulation to predict drug efficacy and optimize design. This is why we are excited to make our first quantum software investment from our new Quantum Fund in Phasecraft. We’re excited about Phasecraft's ability to enable healthcare breakthroughs that could save millions of lives while reducing R&D timelines from decades to years.”

Further information

About Phasecraft
Phasecraft is the quantum algorithms company whose mission is to accelerate the practical application of quantum computing by redesigning quantum algorithms for the imperfect quantum computers of today. Phasecraft was founded in 2019 by Toby Cubitt, Ashley Montanaro, and John Morton, expert quantum scientists who have spent decades leading top research teams at UCL and the University of Bristol. Phasecraft works in partnership with leading quantum hardware companies, including Google, IBM, Quantinuum, and QuEra, academic and industry leaders, to develop high-efficiency algorithms to move quantum computing from experimental demonstrations to useful applications. 

About Plural
Plural is an early-stage investment fund that backs the most ambitious founders on a mission to change the world through technology. Plural launched in June 2022 with the aim to give serious founders in Europe investors with experience to match their ambition. Based in Tallinn, Estonia, and London, UK, Plural’s mission is to have GDP-level impact on Europe, address systemic risks and reduce the opportunity gap worldwide through the companies it backs.

About Playground Global
Playground Global is a deep tech venture capital firm with $1.2 billion under management, backing early-stage startups solving foundational challenges in next-generation compute, automation, energy transition, and engineered biology. Founded in 2015 and based in Palo Alto, Playground partners closely with technical and scientific founders to turn breakthrough ideas into lasting companies. Portfolio highlights include PsiQuantum, MosaicML (acquired by Databricks), d-Matrix, Agility Robotics, Ideon, Ultima Genomics, and Strand Therapeutics.

About Novo Holdings
Novo Holdings is a holding and investment company that is responsible for managing the assets and the wealth of the Novo Nordisk Foundation. The purpose of Novo Holdings is to improve people’s health and the sustainability of society and the planet by generating attractive long-term returns on the assets of the Novo Nordisk Foundation.

Wholly owned by the Novo Nordisk Foundation, Novo Holdings is the controlling shareholder of Novo Nordisk A/S and Novonesis A/S and manages an investment portfolio with a long-term return perspective. In addition to managing a broad portfolio of equities, bonds, real estate, infrastructure and private equity assets, Novo Holdings is a world-leading life sciences investor. Through its Seed, Venture, Growth, Asia, Planetary Health and Principal Investments teams, Novo Holdings invests in life science companies at all stages of development. As of year-end 2024, Novo Holdings had total assets of €142 billion.