The round
- Targeting a $40-50M raise.
- Valuations to fit with a market-standard dilution.
- Please refer to our Achievements during Pre-A Round and Industry Comparables
- We expect the syndicated to consist of:
- A lead investor, plus
- Our current investors (everyone following on), strategic & corporate funds, and sovereign wealth funds
- Timeline to complete the round is Q1 2025, with Term Sheets by ~ November 2024.
Series A Milestones
Product Milestones
- Deliver world-first 4x1 Qubit Network Product MVP at the NQCC customer site
- Deliver gen-1 Qubit-Photon Interface (QPI) prototype.
- QPU-QPI integrations with Quantum Processing Unit (QPU) companies
Technical Performance Milestones
- Demonstrate >98% Quantum Networking Fidelity
Commercial Milestones
- Win and deliver follow-on contract with NQCC for 4x1 Quantum Networking Testbed
- Win contract for second 4x1 Quantum Networking Testbed
- Win and deliver contracts for QPI-QPU integrations with QPU companies
- Build pipeline of product sales for both Quantum Networking Testbeds and Intermediate Distributed QC Systems to be delivered during Series B
- Expand Commercial Quantum Datacentre Alliance
For further details, please consult the Revenue Model
Use of Proceeds
The NQ funding will be used to develop the first 4x1 qubit network; the capital raised in the Series A financing will be deployed against:
- People, and building out the team;
- Capex for internal use in the business alongside inventory;
- R&D;
- Facilities.
People / Team (48%)
48% of the financing will be used to build out the team at Nu Quantum. The majority of the team hired will be within the technical team, in both the lab in Cambridge and the Harwell lab.
Alongside the team focused on developing and productising our networking technology, Nu Quantum will look to invest in manufacturing and supply chain, building out the capability at the business to optimise the manufacturing and production parts of the company.
This team will be supported by operations, both from a project management and also business operations across the people, finance and back office functions.
Finally, as Nu Quantum looks to commercialise through 2027 and 2028, we will look to hire in more marketing and sales personnel, with a focus on individuals with industry experience, who can build the community and network around the business.
CAPEX (19%)
Capex consists of both physical products bought in for the use internally at Nu Quantum, but also inventory which will be provided to the client at the end of a contract.
The Capex will be used to complete each of the 11 technical work streams that build into the 52 logical qubit; in some cases the CAPEX is capitalised to the balance sheet and depreciated through the P&L. In other cases the CAPEX is inventory and will be handed over to the client once the contract is complete.
A proportion of the CAPEX (£2mill) will be used to fit out the new laboratory in Harwell, and to build out the Cambridge lab further to meet the increased demand.
Facilities (10%)
Facilities relates to the rent, rates and business expenses of the business such as service charges, relocation and visa charges, insurance and professional fees in the business.
R&D (20%)
R&D consists of the expenses associated with the technical work streams, including the tools, materials and equipment required. Included in the R&D costs are the IT software and consumables, small items of equipment and packaging costs.
R&D costs also consists of IP legal fees and subcontracting requirements, as well as costs such as foundry runs to develop our integrated photonic chip technology.
