Quanscient raises EUR 10 million to expand AI software
Fri, 29th May 2026 (Today)
Quanscient has raised €10 million in a Series A funding round led by 55 North and B&C Group.
Existing investors Maki.vc, Crowberry Capital, QAI Ventures and First Fellow Partners also participated. The Finnish company plans to use the funding to expand internationally and further develop its software for industrial engineering teams.
Quanscient develops cloud-based multiphysics simulation software and quantum algorithms for hardware design. It is now adding AI to generate large volumes of physics data that can train systems to better model real-world behaviour.
The company argues that hardware engineering has lagged behind other AI-adopting fields because product development still relies on slow simulation processes and repeated physical testing. It cited a recent study showing that 89% of engineers regularly simplify physics models to keep runtimes within budget.
Its software is aimed at customers in sectors including energy, aerospace and automotive, where engineers must model several physical effects at once during product development. Quanscient says its customer base includes Fortune 100 companies in Europe, North America and Japan.
Founded in 2021, the business has a team of 40 people from 15 nationalities. Andrew Tweedie joined the founding group in 2024, alongside original founders Juha Riippi, Alexandre Halbach, Asser Lähdemäki and Valtteri Lahtinen.
Simulation push
Industrial groups have been looking for ways to reduce the cost and time involved in hardware development, especially in areas where physical prototyping is expensive. Simulation software has long been part of that effort, but companies still face limits in processing time, model complexity and data quality.
Quanscient's approach is based on code-driven simulations run in the cloud, rather than older software tools that can be harder to scale. It says this lets engineers test more design options earlier in development and reduce reliance on physical prototypes.
The platform can deliver simulations up to 100 times faster and cut runtimes by as much as 99%, according to the company. It says AI tools in the software can also help identify design trade-offs and surface options that might otherwise be missed.
"AI will not transform hardware engineering unless simulation itself is rebuilt for it. By making multiphysics code-driven and cloud-scalable, we generate the volume of physics data that AI needs, turning simulation from a bottleneck into the engine of data-driven design. This brings to hardware engineering the same shift AI has delivered for software," said Juha Riippi, co-founder and chief executive of Quanscient.
Riippi linked the company's AI work to its existing efforts in cloud and quantum computing.
"Industrial competitiveness depends on both speed and accuracy. The architecture we've built for cloud and quantum simulation is also the foundation for an entirely new category of AI and will enable the physics-aware AI models that hardware engineering has been waiting for," he said.
Investor backing
The round was led by 55 North, a Danish fund focused on quantum technology, and Austrian industrial investor B&C Group. The investment comes as backers continue to look for industrial software companies that can connect AI tools to practical engineering use cases.
Helmut Katzgraber of 55 North said Quanscient's software addresses growing pressure on engineering teams as products become more complex.
"Engineering teams are under pressure to explore much larger design spaces and more complex physics than legacy tools were built for. Quanscient's cloud‐native multiphysics platform, combined with forward-looking work on quantum algorithms and AI tools, gives customers a future-proof step‐change in throughput without sacrificing accuracy. We believe this capability will be critical for innovators in areas like nuclear fusion, advanced electronics, and quantum technologies, and we are thrilled to back the team on this journey," said Helmut Katzgraber, chief science officer and general partner at 55 North.
B&C Group said it sees the company's work as relevant to Europe's industrial base, particularly in fields where digital product development could reduce costs and improve engineering speed.
"We are convinced that Quanscient, with its approach at the intersection of simulation, quantum computing, and AI, is setting a new standard for the development of physical products. As an investor in industrial tech companies that deliver clear value to industry, we see technologies like these as key to strengthening Europe's industrial innovation capacity in the long term. We are excited to support the company on its journey," said Julia Reilinger, managing director of B&C Group.