Canada’s deeptech ecosystem is here and companies like Xatoms are leveraging advanced material science to change how industries approach sustainability. Co-founded by Diana Virgovicova (Chief Executive Officer), Shirley Zhong (Chief Operating Officer), and Kerem Topalismailoglu (Chief Technology Officer), the quantum-chemistry-AI driven startup is tackling one of the world’s most urgent environmental challenges of polluted water. By designing highly customizable photocatalysts, their mission is to clean the world’s water, one molecule at a time, while positioning Canada as a global leader in cleantech innovation.

Closing a $3 million funding round recently marks a major milestone for a company that only a year ago was hustling to convince investors of its technology’s potential. “The biggest challenge for deeptech in Canada is going from 0 to 1,” says Virgovicova. “Once you gain traction, funding opportunities start piling up. But early-stage investors are often skeptical of innovations they don’t fully understand.”

For Xatoms, the turning point came when Quantacet, a quantum technology fund, invested early, validating their platform after rigorous due diligence. That confidence attracted other co-investors, starting with their win of $500,000 at Startup Fest, and later earning Diana a spot on Forbes 30 Under 30, proving that deeptech success stories can emerge from Canada’s innovation landscape.

At the heart of Xatoms’ technology is a quantum chemistry discovery engine that uses molecular simulations to identify promising materials faster, complemented by AI to optimize and scale discoveries. So far, the team has discovered 8 novel photocatalysts tailored for different use cases, including water and air purification. Photocatalysts are widely used as a technology for self-cleaning surfaces.

The immediate demand, however, lies in water purification, especially in North America, where complex pharmaceutical contaminants are harder to degrade. “We have customized catalysts for specific use cases. For example, our materials can neutralize heavy metals in mining wastewater and break down pharmaceutical pollutants into safe byproducts,” says Virgovicova.

This capability opens doors to real-world applications over the next 2 to 5 years, from industrial mining pilots to community projects like cholera removal from drinking water in developing regions.

Shirley Zhong, who leads commercialization efforts, emphasizes the company’s customer-first approach, “Commercialization is still our biggest focus. Initially, we targeted municipal drinking water, but long approval timelines shifted our attention to industrial pilots in mining and wastewater, where we can create immediate impact.”

While Canada is building a reputation for cleantech innovation, Virgovicova is candid about the hurdles. “Canadian investors can be more skeptical about deeptech. But what I love about raising here is how much we care about impact.” Echoing this thought, Zhong believes that early-stage founders should balance purpose with business strategy, based on her own fundraising experience. “At first, we pitched ‘clean water for 2 billion people,’ but investors wanted to see profitability too. Impact got us attention, but a clear business model secured the funding,” adds Zhong. The team also adopted a ‘Gen Z approach to fundraising.’ Leveraging social media, networking with high-profile figures like Reddit’s founder and Matt Damon, Xatoms was able to create investor FOMO on multiple levels. 

While Canada’s future in deeptech seems optimistic, Zhong emphasizes that speed is critical. “Commercialization timelines need to shorten if we want to stay competitive globally. Understanding this, we have built two specialized teams: one of synthetic chemists to get photocatalysts to market faster, and a computational team to develop our AI discovery engine, which we plan to license to adjacent industries like hydrogen or air purification.”

Hiring top talent in such a niche field isn’t easy, but Xatoms has attracted some of the best minds in the industry. Their head of synthetic chemistry was a Post-Doctoral Research Associate from Oxford and lectured at Wilfrid Laurier University, while their computational chemist trained under the inventor of DFT (Density Functional Theory) calculations, a cornerstone of quantum chemistry. The team has now grown to 11 full-time employees, including industry veterans with over 30 years of experience.

With million-dollar funding, growing traction across industrial sectors, and a world-class team of chemists, engineers, and entrepreneurs, Xatoms is a rising force in Canada’s deeptech and cleantech landscape. Currently seeking industrial pilots, especially in mining and wastewater treatment, while keeping an eye on agricultural water purification, Xatoms is focused on discovering different platforms for commercialization and is laying the groundwork for a cleaner, more sustainable future with Canada at the forefront of deeptech innovation.