Algorithmiq Raises €18m To Position Europe As The Future of Quantum Software

While much of the quantum computing industry has focused on the competitive race to build hardware, Algorithmiq is concentrating on the software and algorithmic layer that enables quantum computers to deliver practical, real-world applications.

By positioning itself within Italy’s growing quantum ecosystem, the company is making a strategic bet on software innovation as the next major frontier in quantum technology.

Alongside the relocation, Algorithmiq has secured €18 million in new funding led by United Ventures and Cassa Depositi e Prestiti, with continued backing from Inventure VC.

The latest round brings the company’s total funding to €36 million and marks the largest venture capital investment ever made in an Italian quantum startup.

Milan will now serve as the company’s operational hub as it expands its role as a software partner to leading quantum hardware providers worldwide. From its Italian base, Algorithmiq plans to access Europe’s strong scientific talent pool, grow its rapidly expanding team, and benefit from increasing regional investment and policy support for quantum technologies.

The move from Finland where the company will continue to maintain significant operations reflects both Italy’s rapidly developing quantum ecosystem and Europe’s wider push to bridge the gap between advanced research and deeptech commercialisation.

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It also follows the launch of Italy’s National Quantum Strategy in 2025 which aims to strengthen the country’s quantum infrastructure and accelerate innovation in the field.

Italy’s long-standing contributions to modern physics, from the pioneering work of the Via Panisperna Boys led by Enrico Fermi to today’s research institutions, continue to influence the evolution of quantum technologies.

As the industry matures advances in hardware alone are no longer sufficient. Without breakthroughs in algorithms and error mitigation quantum computers may struggle to achieve meaningful commercial adoption.

Rather than entering the highly capital-intensive hardware race, Algorithmiq is focused on creating the algorithmic infrastructure needed to make quantum systems commercially valuable.

The company recently won the $2 million Wellcome Leap Q4Bio Challenge, becoming the first organisation to demonstrate that end-to-end quantum-classical algorithms can simulate complex therapeutics. In doing so, it outperformed competitors including Harvard University, University of Oxford, Stanford University, University of Nottingham, and Infleqtion.

In 2025, Algorithmiq also announced what it described as the world’s first demonstration of quantum advantage for a useful scientific problem using an Algorithmiq-developed model running on IBM quantum hardware. This achievement followed the launch of its commercial quantum product a noise-mitigation algorithm designed for researchers and industrial users on the Qiskit Functions Catalog.

The relocation to Milan and the latest investment round cap a strong year for the company during which it secured major commercial agreements with Microsoft, IBM and Rigetti, reinforcing its position as a leading quantum software partner for major global technology firms.

Dr Sabrina Maniscalco, CEO and Co-Founder of Algorithmiq, comments: “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. This strategic move and funding injection give us the template to hit scale and continue to serve and work with the biggest quantum players in the world.

Our quantum software makes quantum computers actually useful, and we’re delighted to be taking that message global from our new headquarters in Milan. As quantum computing matures, the question is shifting from who can build the biggest machine to who can make the machines matter. That challenge sits at the intersection of science, software, and industrial execution, and it is increasingly where the real competitive edge may lie.”

About Algorithmiq

Algorithmiq, founded in 2020, develops advanced quantum software designed to make quantum computers practical for scientific and industrial applications. The company focuses on building the algorithmic layer that enables quantum hardware to solve real-world problems, helping accelerate the commercial adoption of quantum computing across industries including healthcare, research, and technology.