Royal Bank and Telus back US$130-million financing for quantum developer Photonic

Royal Bank of Canada and Telus joined a US$130-million equity financing for Vancouver quantum developer Photonic, a round led by Planet First Partners that the company says values it at "multiple billions." The round has not closed and Photonic said it could add up to another US$70-million.

Royal Bank of Canada and Telus joined other investors in a US$130-million equity financing for Vancouver-based Photonic. The round is led by U.K. climate technology financier Planet First Partners and, according to Photonic, values the company at "multiple billions." The financing has not closed and Photonic said it could raise up to another US$70-million. The company has a partnership with Microsoft and has raised US$271-million to date. Key facts: - Royal Bank of Canada and Telus participated in the US$130-million equity financing led by Planet First Partners. - Photonic CEO Paul Terry said the deal values the startup at "multiple billions" and that the round could increase by up to US$70-million because it is not yet closed. - Microsoft is listed as both an investor and a partner and plans to install Photonic technology in its Azure cloud to provide customers with access. - Other investors named include the British government's National Security Strategic Investment Fund, Inovia Capital, Yaletown Partners, and past backers such as British Columbia Investment Management Corp. - Photonic has raised US$271-million to date, has reported spending less than US$100-million so far, and uses a silicon-based, networked chip approach with qubits manipulated by laser light and cooled to about 1 degree above absolute zero. Summary: The financing brings additional Canadian institutional and international investors onto Photonic's cap table and reinforces its existing partnership with Microsoft. The company said the new capital is intended to support its path toward positive cash flow; the equity round remains open and could increase by up to US$70-million before closing.