Quantum computing startup Diraq pockets another $10.5 million in Series A2 extension

Sydney quantum startup Diraq has topped up its Series A2 top up with another US$7 million (A$10.5m) for its Series A-2.

The fresh funds come just four months after Diraq bolstered its Series A in February with an extra A$23 million. That first tranche of the A2 follows US$20 million in a Series A in 2022 when the quantum computing solution was spun out of UNSW Sydney.

Waving the cash at CEO and founder Prof. Andrew Dzurak this time were CSIRO-backed deep tech fund Main Sequence, as well as Taronga Ventures, Uniseed and UniSuper, plus Co:Act Capital, with UNSW, Diraq’s founding investor, chipping in once again.

Previous investors include the Paris-based specialist quantum investor Quantonation, John Higgins Family Investments and Allectus Capital.

It’s been a busy time for Prof Dzurak and his team, who earlier this month announced plans to build a computer chip that combines the power of quantum bits (qubits) with traditional transistors. The breakthrough is remarkable because testing also created a record for control accuracy of 99.9%. That means they have the level of precision needed for full-scale, error-corrected quantum computer processors manufactured by existing silicon chip foundries.

In March, the startup revealed it had cracked one of the many challenges facing quantum computing – operating above an absolute zero (minus 273.15 °C) temperature,

Diraq is a world leader in the development of quantum processors using silicon ‘quantum dot’ technology. Its engineers found a new way of precisely controlling single electrons nestled in quantum dots that run logic gates. Most of the current quantum computing modalities need to be cooled to extremely low temperatures near absolute zero – minus 273.15 °C – because at higher temperatures, the qubits falter and calculation errors rise.

Dzurak and his team appear to be solving that and now has more cash to drive further quantum innovation .

“Diraq welcomes our new investors, and we look forward to partnering with them as we achieve the major milestones on our road map to deliver the world’s first fault-tolerant quantum computer,” he said.

Main Sequence managing partner Bill Bartee said Diraq’s breakthroughs are a testament to Australia’s leading position globally in quantum computing.

“Their world-class team, patent portfolio, and unique approach should advance the field by bringing scalable, spin-based quantum computers into the real world,” he said

We see their potential for scaling up and their compatibility with advanced semiconductor manufacturing technology as an advantage.”

Taronga Ventures cofounder Avi Naidu said the technology has the ability to transform industries.

“Major technology advancements like Diraq’s quantum computers will significantly impact the real asset sector, representing a step change toward the next generation of data infrastructure,” he said.

“More broadly, high-performance computing capabilities will elevate critical areas such as energy modelling, climate, health, and much more.”

Alongside venture capital, Diraq has also received government funding, including from defence, taking the total raised to US$127 million.

The startup has labs at UNSW.