Pasqal CEO: Europe's capital gap forced our Nasdaq SPAC

Key Takeaways

• Pasqal plans to list on Nasdaq via SPAC merger in second half of 2026
• CEO Wasiq Bokhari says Europe lacks the capital depth for deep tech growth stocks
• The company will maintain European operations while accessing US public markets

French quantum computing startup Pasqal is heading to the Nasdaq in the second half of 2026, choosing a US SPAC merger over European markets. CEO Wasiq Bokhari put it bluntly: 'We are at a systematic disadvantage in Europe.'

The company, which builds neutral-atom quantum processors, announced plans to merge with a New York-based special purpose acquisition company. For a firm still in the early commercialization phase of genuinely frontier technology, the move is less about prestige and more about survival math.

Why Europe's capital markets fall short for quantum

Pasqal's reasoning comes down to scale and specialization. European public markets simply do not have enough investors who understand long-duration deep tech bets. Bokhari told Sifted that small companies scaling emerging technologies need public market access, and 'there just isn't enough mass in Europe for growth stocks to perform as they would here.'

The numbers support his argument. The company has raised significant private capital in Europe, including a €100 million Series B in early 2023. But bridging from venture rounds to public markets requires a different investor base, one accustomed to years of negative cash flow before commercial payoff.

US markets have institutional investors, family offices, and retail traders with experience holding companies like IonQ, which went public via SPAC in 2021 at a $2 billion valuation. No European quantum computing company has achieved a comparable public exit.

What Pasqal actually does

Pasqal uses laser-trapped rubidium atoms as qubits rather than the superconducting circuits favored by IBM and Google. The neutral-atom approach offers theoretical advantages in scalability. The company claims its architecture can exceed 1,000 qubits, placing it among the more ambitious players in quantum hardware.

The company was founded in 2019 by researchers from Institut d'Optique and CNRS. Its scientific credentials got a boost when co-founder Alain Aspect won the 2022 Nobel Prize in Physics for foundational work on quantum entanglement.

Revenue remains small. Pasqal reported €6 million in revenue in 2024, though Bokhari emphasized growing enterprise contracts and government partnerships. The company competes with US-based IonQ, Rigetti, and the UK's Quantinuum for both customers and talent.

The SPAC path: cheaper but riskier

SPACs fell out of favor after 2021's bubble, with many post-merger companies trading well below their initial valuations. IonQ, the closest comparable, has seen its stock swing wildly. It currently trades around 60% below its 2021 peak.

For Pasqal, the SPAC route offers faster access to public capital without the scrutiny and roadshow costs of a traditional IPO. It also locks in a valuation before market conditions potentially worsen. The risk is that public market investors remain skeptical of pre-revenue deep tech, especially after getting burned on earlier SPAC deals.

Bokhari acknowledged the concern but pointed to long-term investor interest in quantum. 'You can't think of this just short-term,' he said, noting that patient capital willing to wait five to seven years for quantum commercialization exists primarily in the US.

European operations stay put

Despite the US listing, Pasqal will remain operationally European. The company is expanding its manufacturing facilities in France and maintaining its research partnerships on the continent. Bokhari described the listing as accessing American capital, not relocating the company.

'It's important to emphasize that we do not have to move,' he said. The goal is tapping into US investor appetite for quantum while keeping European research and development advantages, particularly access to strong physics talent and government R&D support.

Still, the decision underscores a persistent European problem. The continent produces world-class deep tech research but struggles to fund companies through the expensive scaling phase. Bokhari was direct about this: European growth-stage funding remains 'very constrained' compared to the US.

What this signals for other European startups

Pasqal is not alone. Several European deep tech companies in AI, biotech, and climate tech have either listed in the US or are considering it. The pattern reflects both pull factors, like US investor appetite, and push factors, like fragmented European stock exchanges and thin post-IPO trading volumes.

For founders building capital-intensive technology, Pasqal's decision offers a data point. European venture rounds can fund early stages effectively. But when you need hundreds of millions in patient public capital, you may have to look across the Atlantic.

Frequently Asked Questions

When will Pasqal list on Nasdaq?

Pasqal plans to complete its SPAC merger and begin trading on Nasdaq in the second half of 2026.

What is Pasqal's quantum computing approach?

Pasqal uses neutral-atom quantum computing with laser-trapped rubidium atoms as qubits, which allows scaling to over 1,000 qubits.

Why is Pasqal listing in the US instead of Europe?

CEO Wasiq Bokhari cited Europe's lack of capital market depth for growth stocks and insufficient investor experience with long-duration deep tech investments.

Will Pasqal move its operations to the US?

No. The company will maintain its research, manufacturing, and headquarters in Europe while accessing US public market capital.

Who are Pasqal's main competitors?

Key competitors include US-based IonQ and Rigetti, as well as the UK's Quantinuum, all pursuing different quantum hardware architectures.

Source: Sifted