The Australian government has invested $15 million AUD ($9.06 million USD) in Canberra-based QuintessenceLabs through the National Reconstruction Fund (NRF), leading a $20 million AUD ($12.08 million USD) funding round. The investment is intended to support domestic manufacturing, international expansion, and continued development of the company’s quantum-resilient cybersecurity technologies. This is the NRF’s eighth investment to date, and its second in quantum technology, following a $13 million AUD ($7.85 million USD) investment in Quantum Brilliance in December 2024.
QuintessenceLabs produces both hardware and software for encryption systems based on quantum physics, including quantum random number generators (QRNGs) and secure key management tools. These systems aim to mitigate cryptographic risks posed by future large-scale quantum computers capable of breaking traditional public-key encryption. The company’s solutions are deployed in sensitive environments, including by clients such as JPMorgan Chase, Westpac, Boeing, Northrop Grumman, RTX (Raytheon), the U.S. Department of Homeland Security, and DARPA.
Founded in 2005, the company has previously secured funding from investors such as Main Sequence Ventures (CSIRO-backed), Telus Ventures, and InterValley Ventures (associated with Mizuho Financial Group). According to CEO Vikram Sharma, the new capital will support scaling of production capabilities and delivery of new product features in response to rising demand. U.S. federal mandates require agencies and critical infrastructure providers to adopt post-quantum cryptography (PQC) standards before the 2030s.
The funding round is part of a broader national strategy by the Albanese government to position Australia as a global leader in quantum technologies. The NRF, modeled on international industrial policy funds, is tasked with rebuilding sovereign capabilities in key technology sectors. Other government-backed quantum efforts include a $470 million AUD ($284 million USD) investment in PsiQuantum and early-stage support for Silicon Quantum Computing, co-founded by physicist and former Australian of the Year Michelle Simmons.
QuintessenceLabs focuses on quantum-enhanced cryptographic primitives rather than quantum computing hardware. Its technology stack is designed to integrate with existing infrastructure while preparing systems for transition to quantum-resilient standards. With funding from the NRF, the company is positioned to continue development of high-assurance entropy sources, key distribution protocols, and cryptographic lifecycle management tools applicable to regulated industries.
Read the posts about this investment on the InnovationAus website here, and also The Australian Financial Review here.
April 5, 2025
