Innovate UK has announced it has up to £12 million to spend on innovative projects exploiting new quantum technologies and is seeking private investment partners.

A statement from the government’s innovation agency explained that new quantum technologies could transform products and services in many business sectors, including automotive, healthcare, infrastructure, telecommunications, cyber security and defence.

Quantum physics is already at the heart of the electronics, media, computing and infrastructure systems used in everyday life. A second generation of quantum technologies based on new quantum effects could lead to more secure digital communication, improved construction and radical increases in computing power.

The government’s Industrial Strategy Challenge Fund (ISCF) Commercialising Quantum Technologies Challenge is a £153 million investment in projects that will help the UK to lead the world in development of these new technologies.

Innovate UK, as part of UK Research and Innovation, has up to £12 million from the fund to invest in innovative research and development projects in the field. It is seeking investors willing to partner it by helping to find suitable businesses, managing the grant allocation and investing their own private equity capital.

The aim is to improve access to financial and commercial support for small businesses developing innovative quantum technologies.

The partnership would invest in quantum technologies that would not otherwise be supported within an investor’s risk strategy and support innovations that have clear potential to be adopted at scale. Innovate UK is seeking investors that:

• demonstrate the interest, capability and capacity needed to invest in early-stage companies, including university spin-outs and businesses looking for their first investment opportunities;
• demonstrate the ability to add value beyond their investment;
• commit to helping the company grow and scale;
• have access to relevant sector and technology-specific expertise.

Phase 2 of the competition will see successful investors work with Innovate UK and the ISCF to fund a broad range of businesses working on promising projects that exploit the new generation of quantum technologies, including:

• connectivity: techniques for securing data in storage and in flight;
• situational awareness: including autonomous systems, sensors and detectors for the built environment, transport and infrastructure and imaging and sensing;
• computing: transformational computers for solving currently intractable problems.

Funded business projects are expected to range in size between £250,000 and £2 million.

The competition opens on 19 August and the deadline for registration is 25 September. It is open to equity providers holding a full UK registration at Companies House, including charities and trusts with the power to make investments.

Investors can apply for a grant allocation of between £2 million and £12 million and must demonstrate they can invest at least an equal sum into companies. A briefing event will take place on 27 August.

Share Story: