Valuation of quantum computer maker D-Wave slashed by more than half after company struggles to raise financing

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The US$40-million financing came as part of a capital restructuring that cut D-Wave’s valuation to less than US$170-million before the receipt of funds

“The company has never looked better," said Rick Nathan, managing director with Kensington Capital Partners, a D-Wave investor."After all this time, it now feels like [D-Wave] has achieved real product market fit and is scaling with its customers. This is new, and as a long-time investor, it is great to see.”

Regulatory filings from PenderFund Capital Management’s Working Opportunity Fund show D-Wave dropped to its 11th largest investment as of June 30 from its second-largest before. The fund didn’t say why, but separately disclosed it had cut the carrying value of one of its private holdings, likely D-Wave, by $22.6-million after the unidentified company did “a significant equity financing at a lower [valuation] level" than prior financings.

Meanwhile, U.S. fund manager 180 Degree Capital cut the value of its D-Wave stake to US$1.2 million from US$7.7 million on Dec. 31. The U.S. fund manager paid US$5.7-million for its stake from 2008 to 2014. In a call with 180 Degree investors on Aug. 11, president Daniel Wolfe said the writedown “was directly related to a financing event that repriced the company.

 

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