The University of Colorado Boulder (CU Boulder) has announced a novel partnership between its Colorado Quantum Incubator (COQI) and Stout Street Capital, a Denver-based venture capital firm and ecosystem builder focused on deep tech. 

The strategic partnership will allow the partners to invest in and incubate startups tackling the complex challenges of next-generation quantum technologies.

Bringing quantum technologies to market poses unique hurdles beyond those faced by other deep tech startups. This partnership leverages Stout Street Capital’s first-of-its-kind, Lab Embedded Venture Capital Access Program, or LEVCAP, which aims to reduce risks and accelerate the commercialization of quantum innovations.

“This collaboration between the COQI and Stout Street reinforces Colorado’s position as a national and global leader in quantum innovation,” said Massimo Ruzzene, senior vice chancellor for research and innovation and dean of the institutes at CU Boulder. “More than ever, the university’s legacy in quantum science and technology is being augmented by a range of partnerships, opportunities and resources that are helping turn quantum advances in the lab into real-world solutions with societal and economic impact.”

The LEVCAP model embeds deep tech startup teams within R&D environments, providing them access to deep tech-ready tenant space, cutting-edge R&D testbeds, mentorship from world-leading scientific experts, business mentoring from deep tech commercialization experts, and crucial early-stage capital support. The approach offers capital efficiency and a robust business and technical support structure for deep tech startups seeking to scale and achieve commercial impact. This model is central to the new partnership’s strategy.

“This collaboration represents a key step in turning Colorado’s quantum research leadership into economic impact,” said John Francis, managing partner at Stout Street Capital. “Through LEVCAP, we’re aligning venture capital, lab infrastructure and entrepreneurial talent to build scalable quantum startups right here in Colorado.”

The new collaboration builds on the region’s 2023 designation by the federal Economic Development Administration as a Tech Hub in Quantum Technology and leverages significant investment by the State of Colorado to become the most attractive quantum launchpad in the nation.

The State of Colorado’s Office of Economic Development and International Trade (OEDIT) first invested in a CU Boulder-led quantum seed grant program for early stage quantum innovators in 2023. Now several of those companies will be able to incubate and scale at the COQI, partially built and outfitted by a Colorado tax credit investment of $22 million, with the help of Stout Street Capital and its deep tech-focused Unmet Frontier Fund.

“Colorado is a global leader in quantum research and development, and this partnership between Colorado Quantum Incubator and Stout Street Capital is an essential step to help ensure that discoveries in the lab become real-world applications,” said Eve Lieberman, OEDIT executive director. “We are thrilled to see our partners pursue new and novel opportunities that build on our shared work to continue developing quantum technologies in Colorado.” 

“COQI’s testbeds provide unique capabilities for companies working at the forefront of quantum computing, sensing and communications,” said Scott Sternberg, executive director of COQI and CU Boulder’s CUbit Quantum Initiative. “Partnering with Stout Street and leveraging the LEVCAP framework will accelerate those capabilities from prototype to commercial product.”

By establishing this LEVCAP node focused on quantum technologies, CU Boulder and Stout Street are laying the groundwork to scale the approach to other deep tech areas, creating a commercialization flywheel for turning breakthrough science into startups that drive innovation, job creation and regional competitiveness.

The partnership aligns with the broader mission of the COQI and Colorado’s commitment to establishing the state as a global hub for advanced technology commercialization. Through this collaboration, CU Boulder, the COQI and Stout Street Capital are shaping the future of quantum innovation in Colorado and beyond.

About the Colorado Quantum Incubator

Under the stewardship of CU Boulder, the Colorado Quantum Incubator (COQI) is a 501c3 organization that provides specialized facilities, testbeds and programming to advance the commercialization of quantum technologies, and COQI partners with industry, investors and research institutions to accelerate lab-to-market transitions and talent development within the quantum ecosystem.

About Stout Street Capital

Stout Street Capital is a Denver-based venture capital firm and ecosystem builder focused on early-stage technology companies. Since 2017, it has invested in over 90 startups and operates the national UNMET Conference Series, which connects founders outside coastal markets with institutional investors. Stout Street’s Unmet Frontier Fund focuses on deep tech investments in the Mountain West, including applications in quantum, AI, energy, and advanced materials.

About the University of Colorado Boulder

The University of Colorado Boulder is Colorado’s leading public research university, transforming lives since 1876. As the state's flagship university and one of only 38 U.S. public research institutions in the Association of American Universities (AAU), CU Boulder has proudly served Coloradans since the state's founding. Home to five Nobel Laureates since 1989 and the only university to send space instruments to every planet in the solar system, CU Boulder provides a strong return on investment by aligning efforts to achieve research excellence, global sustainability impact and the success of all students, faculty and staff.