QWave invested $5,6M in quantum link encryption systems

The venture Fund QWave Capital, established by founders of the “Parallels” Sergey Belousov and Ilya Zubarev, and also the former director general of the “Ritzio Entertainment Group” (owner of the gambling house “Vulkan”, etc) Sergey Kuzmin, invested $5.6M in the Switzerland company “ID Quantique”. This sum includes $4.5M of direct nvestments in business companies, and $1.1M – acquisition of shares from another shareholder. This is the forth project, which is supported by the investment fund.

Attracted investments will be directed for commercialization of the more effective quantum link encryption system, and also for entering the new markets. The Company “ID Quantique” works on the market of communications encryption. It has developed solutions for protection of secret information based on the Quantum Key Distribution, QKD method (where the encryption key transfers via fiber channel by means of single photons). Due to principles of quantum mechanics any attempt of such photons capture immediately discovers by a sender and recipient, which prevents media leak. The solution allows not only fixating the attempt of such leak, but also know who is the interceptor, and also redirect data to another channel.

“Nowadays all over the world there are several companies, which develop protected communication systems, offer quantum encryption of communication channels. We have chosen the “ID Quantique”, because it conducts investigations in this sphere and focuses i=on quantum technologies. In particular, they firstly have made commercial supply of such syste,”, - informed the partner of the “QWave Capital” Dmitry Kislyakov.

Last week the scientific-technological giant “Battelle” with its head-quarter in Ohio, announced about the fact, that based on the “ID Quantique” products there has been finished creation of the first in USA commercial protected QKD-network, connecting fields in the Columbus city and its regions. Such solution will be useful for Russian companies and structures, - believes Mr.Kislyakov, - in particular, working in the sphere of special communication and finances.

Modern market of communications encryption, based on which the “ID Quantique” works, comprises $20B. Cryptographical information security is applied both in State sector, and in private sector, for example by banks and other organizations.