European quantum scale-up QphoX enters deep tech spotlight. Dutch quantum startup joins EIC STEP Scale Up.
EIC STEP Scale Up project
Dutch quantum hardware startup QphoX was chosen for the European Innovation Council (EIC) STEP Scale Up project, which invests €10 million to €30 million per company in equity.
As QphoX moves from early-stage innovation to global quantum scaling, the announcement is significant. Despite allegations of a €10 million investment in QphoX, publicly available sources suggest that QphoX is one of eight companies selected for the STEP Scale Up plan and will move to the investment determination stage to decide the award amount through due diligence.
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STEP Scale Up: Bridging Europe’s Deep-Tech Scaling Gap
The Strategic Technologies for Europe Platform (STEP)’s EIC STEP Scale Up plan fills the funding gap that deep-tech enterprises experience while scaling up from prototype. It makes equity-only investments of €10 million to €30 million per firm to catalyse €50 million–€150 million fundraising rounds.
The latest appeal suggested €171 million to invest in selected enterprises, demonstrating the program’s scale and ambition. The STEP project targets digital, deep-tech, clean-tech, and biotech firms to reinforce Europe’s technical sovereignty and assist companies compete worldwide in quantum, semiconductors, photonics, and other important fields.
QphoX: From Quantum Modems to Global Scaling
The Netherlands-based QphoX develops scalable, high-performance quantum processors and hardware for quantum connectivity, including a “quantum modem” enables quantum computers to interact across optical networks.
To advance its quantum technology from lab demonstrations to commercial deployment, QphoX obtained €8 million in Series A funding from the EIC Fund and other investors.
QphoX’s technology and business model have been rigorously evaluated and awarded STEP status, indicating strategic scaling potential in Europe. QphoX joins firms developing next-generation solar wafers, photonic quantum computers, and fusion power.
Strategic Implications for the European Quantum Landscape
QphoX’s selection shows Europe’s rising strategic technology focus on quantum hardware and networking. Quantum processors, networking, and modular quantum systems enable next-generation computing, communications, and sensing.
By allowing a large investment through STEP Europe, deep-tech enterprises who previously struggled to secure “scale-up” finance (rather than early-stage subsidies) now have a specific avenue. The investment aims to “scaling up breakthrough innovations” and unlock funding rounds 3-5 times the EIC input, according to the EIC page.
This improves commercialisation routes for quantum tech startups like QphoX: earlier investments funded research or prototypes, but large-scale deployment and manufacturing require more funding, ecosystem partners, and strategic support.
QphoX is grouped with other high-impact quantum and photonic startups like Quandela and Smart Photonics, demonstrating Europe’s ambition.
Path Ahead for QphoX
Although STEP is a big recommendation, QphoX now faces various challenges:
Final investment discussion and due diligence: The company is “forwarded for investment decision” rather than completely funded.
Commercialization and manufacturing readiness: Mass-producing quantum hardware (modems, CPUs) is expensive and complex.
Ecosystem and market adoption: Quantum infrastructure data centres, quantum clouds, interconnect standards determines quantum networking and connectivity device adoption.
Leveraging private co-investment: The STEP model expects EIC’s investment to stimulate larger rounds, therefore QphoX will need to attract €50-150 million in private investors to reach the necessary scale.
If successful, QphoX might lead European quantum hardware, providing jobs, IP, manufacturing capacity, and global exports. Its success may also support Europe’s deep tech scale-up finance strategy.
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Broader Impact for Innovation & Europe’s Tech Strategy
The STEP develop Up programme shows that Europe is investing heavily in companies that can develop important innovations, not just early research. That matters since:
Tech financing delayed manufacture, scalability, and commercial adoption of prototypes. Europe’s technical sovereignty is strengthened by minimum non-EU supplier dependence for quantum, semiconductor, and photonics hardware and systems.
EIC’s equity investment encourages private-public leveraging by opening wider rounds and attracting venture capital and government support. STEP benefits enterprises like QphoX individually, as well as clusters, supply chains, and regional innovation networks.
Europe may become a worldwide hardware and systems player or relinquish leadership to the US, China, or others in the quantum industry. These investments show Europe wants to lead.
Conclusion
QphoX’s selection by the EIC STEP Scale Up initiative represents a milestone for European quantum technology. Quantum research began with financing, but this phase focusses scalability, commercialisation, and strategic investment.
QphoX’s prototype development to global scaling matches the EU’s goal of building global deep-tech enterprises. The STEP program delivers finance, visibility, resources, and strategy alignment.
Will QphoX get its last investment, increase manufacturing, and provide market-ready quantum hardware in the next years? Will Europe’s deep-tech ecosystem attract enough quantum, photonics, semiconductor, and other companies?
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