Algorithmiq, a quantum software company, has raised €18 million in new funding and announced the relocation of its global headquarters to Milan.
The round was led by United Ventures and Cassa Depositi e Prestiti, with continued participation from Inventure VC. The investment brings the company’s total funding to €36 million and represents the largest venture capital investment to date in an Italian quantum startup. Algorithmiq develops software and algorithmic infrastructure designed to make quantum computers commercially useful across scientific and industrial applications.
What The Company Does
Founded in 2020, Algorithmiq focuses on developing advanced quantum software that enables quantum hardware to solve practical real-world problems. Rather than building quantum computers directly, the company concentrates on the algorithmic and error-mitigation layer required to improve performance and usability of existing quantum systems.
Its technology is designed to help quantum hardware providers and enterprise users run more reliable and scalable computations, particularly in areas such as scientific simulation, healthcare research, and industrial modelling.
One of the company’s key areas of focus is noise mitigation, a major challenge in quantum computing where environmental interference can significantly reduce computational accuracy. Algorithmiq has developed software tools aimed at improving the stability and usefulness of quantum systems before fault-tolerant quantum hardware becomes widely available.
The company previously launched a commercial noise-mitigation product through IBM’s Qiskit Functions Catalog and has worked with major hardware providers including Microsoft, IBM, and Rigetti.
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Market Context / Industry Background
The quantum computing sector has historically been dominated by competition around hardware development, with companies racing to increase qubit counts and improve hardware stability. However, as the industry matures, attention is increasingly shifting toward the software layer needed to translate hardware capability into commercially viable applications.
Without advances in algorithms, optimisation techniques, and error correction, many quantum systems may struggle to deliver practical value despite improvements in hardware performance.
This has created growing demand for companies focused on quantum software infrastructure, particularly those capable of bridging the gap between experimental research and industrial deployment.
Algorithmiq’s decision to establish its headquarters in Milan also reflects broader European ambitions to strengthen domestic quantum ecosystems. Italy has recently increased institutional support for quantum technologies, including the launch of its National Quantum Strategy in 2025 aimed at accelerating research commercialisation and infrastructure development.
The move aligns with wider efforts across Europe to position the region as a competitive centre for deeptech innovation in fields such as quantum computing, advanced semiconductors, and AI infrastructure.
Founder / Investor Commentary
CEO and co-founder Dr Sabrina Maniscalco described 2026 as a turning point for practical quantum applications, arguing that the industry focus is moving beyond hardware scale toward software utility and industrial execution.
According to Maniscalco, the company’s objective is to position itself at the centre of this transition by providing the software systems needed to make quantum hardware operationally useful for large-scale scientific and commercial use cases.
She also emphasized that competitive advantage in the sector is increasingly being shaped by the ability to integrate scientific research, software engineering, and industrial deployment rather than hardware development alone.
Growth Plans / Use Of Funds
The newly raised capital will support Algorithmiq’s expansion from its new headquarters in Milan while maintaining significant operations in Finland. The company plans to scale its engineering and research teams, strengthen partnerships with global quantum hardware providers, and expand commercial deployment of its software products.
Part of the investment will also support continued development of quantum algorithms and error-mitigation systems aimed at accelerating adoption in healthcare, research, and industrial applications.
The relocation to Milan is expected to provide the company with greater access to European scientific talent, institutional partnerships, and regional funding initiatives focused on advanced technologies.
About Algorithmiq
Algorithmiq is a quantum software company founded in 2020 that develops algorithmic infrastructure designed to make quantum computers practical for scientific and industrial applications. Originally established in Finland and now headquartered in Milan, the company focuses on quantum algorithms, noise mitigation, and software systems that improve the performance and commercial usability of quantum hardware. Algorithmiq works with major technology and quantum computing providers to support applications across healthcare, scientific research, and advanced computing.
