Yokohama, Japan — LQUOM Inc. (Head Office: Yokohama, Kanagawa, Japan; CEO: Kazuya Niizeki; hereinafter “LQUOM”) is pleased to announce that it has entered into separate overdraft facility agreements with MUFG Bank, Ltd. and The Shoko Chukin Bank, Ltd. (listed in no particular order). The facilities provide LQUOM with greater financial flexibility to address working capital requirements associated with quantum repeater R&D, demonstration projects in Japan and overseas, and future business expansion. By complementing its existing equity financing with debt capacity, LQUOM is broadening its funding options and strengthening the financial foundation required to advance the commercialization and real-world deployment of the Quantum Internet.
Background
LQUOM is a deep-tech startup originating from Yokohama National University that develops quantum repeaters, a key technology for realizing the Quantum Internet.The commercial deployment of quantum repeaters requires sustained R&D in core component technologies, including quantum light sources and quantum memories. It also requires ongoing validation in real-world environments, both in Japan and overseas, as well as collaboration with telecommunications carriers, research institutions, and industry partners.To advance these activities on a stable basis, LQUOM requires both medium- to long-term funding and ready access to working capital as its development and demonstration programs progress. The Company is also building its financing capabilities in stages to prepare for the larger funding requirements expected as its R&D, demonstration programs, and business operations scale.The overdraft facilities established with MUFG Bank and Shoko Chukin Bank enhance LQUOM’s ability to respond flexibly to working capital requirements arising from R&D, demonstrations, and business expansion.
Outlook
LQUOM will leverage its expanded financing capabilities to advance the following initiatives:
・R&D to further improve the performance and reliability of quantum repeaters
・Expansion of demonstration projects at testbeds in Japan and overseas
・Development of partnerships for the commercial deployment of quantum communication networks
・Expansion of LQUOM’s business platform with a view to global markets
Going forward, LQUOM will maintain an appropriate mix of equity financing, debt financing, grants, and other funding sources to support sustainable R&D and business growth.
Comment from MUFG Bank.
Startup Acceleration Division / General Manager
Kunitomo Kusano
As quantum computing continues to advance rapidly, the development of quantum internet infrastructure is becoming increasingly important. LQUOM possesses proprietary quantum repeater technology, an essential component to the commercialization and deployment of the quantum internet. Recognizing the important role that LQUOM is expected to play in advancing this field, we decided to provide the company with this financing. MUFG will continue to support the business expansion of LQUOM.
Comment from The Shoko Chukin Bank, Ltd.
Koichi Takahashi, Executive Officer, General Manager, Startup Business Department
The quantum repeater being developed by LQUOM is, in our view, a key technology that overcomes the distance limitations of quantum communication and paves the way for secure next-generation communication infrastructure and the future realization of distributed quantum computing networks.
We highly value LQUOM’s business plan and technology development capabilities as it earnestly takes on the challenge of long-term R&D and practical implementation. With great expectations for the future potential of LQUOM—a university-originated deep-tech company striving to realize the quantum internet—we are pleased to support LQUOM through this financing.
SHOKO CHUKIN BANK will continue to support LQUOM’s endeavors and sustainable growth with all of our resources, while further strengthening our commitment to startups taking on challenges in the quantum sector.
Comment from Kazuya Niizeki, CEO of LQUOM Inc.
The commercialization of quantum repeaters requires sustainable R&D, as well as financial flexibility to respond promptly to funding needs that arise as demonstration activities progress. Maintaining financial flexibility is therefore essential. These overdraft facilities are not simply about adding borrowing capacity. They broaden our financing options beyond equity and enable us to select the source of capital best suited to the objectives and stage of each initiative.
We are greatly encouraged by MUFG Bank and Shoko Chukin Bank’s understanding of our technology and business strategy, and we value the relationships we have built with both institutions. We will continue to steadily advance our R&D and commercialization efforts toward realizing the Quantum Internet.
About LQUOM Inc.
LQUOM is a quantum technology startup originating from Yokohama National University that develops quantum communication systems, quantum repeaters, and related technologies to realize the Quantum Internet.
Through the development of entanglement-based quantum repeater systems, LQUOM aims to enable long-distance quantum communication and contribute to the development of secure next-generation communications infrastructure and distributed quantum computing networks.
Company Name: LQUOM Inc.
Representative: Kazuya Niizeki, CEO
Head Office: 79-5 Tokiwadai, Hodogaya-ku, Yokohama, Kanagawa, Japan
Established: January 2020
Business: Development of quantum communication systems, quantum repeaters, and related technologies
Website: https://lquom.com/en/
Media Contact
LQUOM Inc. – PR Team
Email: contact@lquom.com