UK quantum startup QFX raises €2.2 million funding to expand its hardware platform

Oxford-based QFX, a spin-out from the University of Oxford, has raised €2.2 million in a Seed funding round to develop modular hardware for quantum technologies, with applications spanning computing, sensing, and secure communications.

The round was led by Silicon Valley heavyweight and Y Combinator co-founder Paul Graham.

“With strong investor backing and a leadership team rooted in deep technical and commercial expertise,” said Dr Timothy Ballance, CEO of QFX, “I am thrilled to be leading QFX, delivering quantum hardware which will enable the next generation of quantum systems.”

The Seed investment in QFX situates the Oxford-based spin-out within a broader European surge of activity in quantum hardware and enabling technologies during 2025.

In the Netherlands, QuantWare raised €20 million to scale superconducting quantum-chip fabrication, while QuiX Quantum secured €15 million to develop a universal photonic quantum computer. Sweden’s FirstQFM AB closed a €1.2 million pre-Seed round to enhance NISQ-era hardware through foundation-model optimisation, while the UK’s Phasecraft raised €29 million for its quantum-algorithm platform.

Although QFX’s €2.2 million Seed round is smaller in scale, it reflects a complementary approach — building modular, interoperable hardware to underpin scalable quantum systems. The company’s focus on cross-platform integration aligns with the cross-disciplinary “DeepTech moment” highlighted by EU-Startups in its 2025 DeepTech feature on Europe’s quantum and photonics innovators.

Incorporated in 2024 and headquartered at Begbroke Science Park, QFX already has a commercially available product: a compact, high-performance atomic source designed to support integration across quantum platforms. This reflects the startup’s modular philosophy n- building scalable components that can plug into broader systems, whether for computation, navigation, or ultra-secure communication.

QFX was founded by Dr Joe Goodwin, Dr Laurent Stephenson, and Dr Peter Drmota.

Built on cutting-edge research in trapped ion and neutral atom quantum computing, QFX is pursuing a vision of scalable, networked quantum systems. Its unique modular engineering approach targets one of the field’s biggest bottlenecks – scaling up from isolated quantum experiments to robust, interconnected technologies with real-world utility.

With the fresh capital injection, the startup plans to accelerate development of its foundational hardware products and expand its operational footprint.

Alongside the funding, QFX has made strategic executive hires to bolster its leadership. Dr Timothy Ballance, previously President – UK at Infleqtion, has joined as Chief Executive Officer. Ballance brings deep academic roots in networked trapped ion research from Cambridge and Oxford, as well as a proven commercial track record scaling Infleqtion UK from a one-person setup to a 50-person quantum tech operation delivering products like atomic clocks and cold atom sources.

Joining him is Sadie Mansell, also formerly of Infleqtion, who takes the role of Chief Operating Officer. Mansell has extensive experience in operational strategy and scaling complex R&D ventures.

With national interest in quantum defence, navigation, and encryption on the rise, QFX is well positioned to provide the hardware backbone to what could become Europe’s next-generation quantum infrastructure.

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