Canadian quantum computing startup Photonic Inc. has closed an extended funding round that has seen the company raise more than $200 million at a valuation of $2 billion.

The round closed four months after Photonic announced it had raised $131m in a round led by Planet First Partners and with participation from Microsoft, the Royal Bank of Canada, and Telus.

The extended round added new investors, Business Development Bank of Canada, Export Development Canada (EDC), Bell Ventures, Firgun Ventures, and InBC Investment Corp.

It brings the total raised by the startup to date to more than $350 million. Photonic previously said it would use the funds to expand its business and technical teams and further the commercialization of its technology.

“This financing unites government, strategic partners, and international investors around a shared conviction: that commercial-scale quantum computing is within reach – and that its economic impact will be transformative,” said Don Mattrick, CEO, Photonic Inc. “We would particularly like to recognize the meaningful contributions from the Government of Canada via both BDC and EDC. Photonic is already delivering on commitments to customers, including as part of the Canadian Quantum Champions Program and Stage B of DARPA’s Quantum Benchmarking Initiative. We will use this funding to continue to hit key milestones, grow our team, and deepen the partnerships that will take us there.”

Photonic was founded in 2016 with the aim of building commercial-scale fault-tolerant quantum computers and networks. The startup says its Photonic’s 'Entanglement First' architecture prioritizes “entanglement distribution across nodes,” eliminating “quantum-specific bottlenecks” that limit the ability of other systems to scale.

In November 2025, the company was one of 11 that advanced to the second stage of the United States government’s Defense Advanced Research Projects Agency’s (DARPA) Quantum Benchmarking Initiative (QBI).

The program aims to determine whether it's possible to build a fault-tolerant quantum computer within a decade and if any quantum computing approach can achieve utility-scale operation by 2033.