Algorithmiq, a Milan-based quantum software company, has raised €18 million ($21.25 million) in a Series B funding round led by United Ventures and CDP Venture Capital. The startup develops hybrid quantum-classical algorithms and platforms for solving complex problems in quantum chemistry, drug discovery, and materials science on near-term hardware. This brings total funding to €36 million. The capital supports the recent relocation of its global headquarters from Helsinki to Milan and commercialization efforts.
Europe Accelerates Quantum VC Surge
Algorithmiq's raise marks Italy's largest VC investment in a quantum startup, arriving amid record $1.6 billion in global quantum computing funding through 2024, with $621 million directed to software per Crunchbase. Peers like Classiq raised $110 million in a major quantum software round, while QSimulate secured $11 million for molecular simulations per company announcement. Kuano Technologies obtained $4 million targeting drug design per Crunchbase. The move positions Algorithmiq to leverage Italy's National Quantum Strategy and EU initiatives.
Drug Discovery Hits Classical Limits
Current classical methods struggle with accurate atomistic simulations for drug metabolism and enzyme modeling, where rising R&D costs average $2.6 billion per drug drive demand for quantum acceleration. Algorithmiq targets these gaps in photodynamic cancer therapies and quantum network medicine, partnering with Cleveland Clinic and IBM.
Noise-Resilient Tools Enable NISQ Utility
Algorithmiq's Digital Quantum Interface integrates quantum hardware with classical HPC via patented measurements, available on IBM Qiskit. Its Tensor-Network Error Mitigation (TEM) toolbox reduces noise without overhead, powering Aurora for ab-initio simulations. The firm demonstrated quantum advantage simulating photosensitizer drugs on 100-qubit IBM hardware, winning the $2 million Wellcome Leap Q4Bio prize as sole winner.
As CEO Dr. Sabrina Maniscalco noted:
"2026 is a year in which more meaningful applications of quantum will become a reality, and we want to be at the centre of that change."
Sovereign Capital Backs Continental Push
United Ventures and CDP Venture Capital, Italy's state-backed fund, lead the round, signaling strategic conviction in quantum software amid EU's €1 billion Quantum Flagship. Existing backers Inventure VC join, validating Algorithmiq's shift to Milan for ecosystem access. Partnerships with IBM, Microsoft, Nvidia, Rigetti, and Google underscore hardware-agnostic appeal.
Jacopo Drudi of United Ventures added:
"With quantum, Europe has the opportunity to set the pace rather than follow it."
Quantum Software Market Explodes
The quantum computing software market stood at $779.2 million in 2023 and projects growth to $2.51 billion by 2030 at 18.5% CAGR per Grand View Research. The drug discovery segment within quantum computing measures $350 million today per Roots Analysis. Competitors include Kipu Quantum with $14.5 million in funding focused on industrial chemistry per company press, though recent raises exceed that. Trends favor hybrid systems as NISQ hardware scales.
Founders Drive Quantum Breakthroughs
CEO Dr. Sabrina Maniscalco, a quantum physics expert, addressed the UN Security Council on quantum technologies. Co-founders Matteo Rossi (CTO) and Guillermo García-Pérez (CSO) lead with 50+ peer-reviewed publications in Nature Physics and others. Recent hires bolster quantum chemistry and measurement teams, supporting 46 employees.