Building on decades of fundamental research, new applications of Quantum Science have started to emerge in the fields of computing, sensing and networks. In the current phase of deployment, in which quantum technology is not yet in routine use but is still transitioning out of the laboratory, Venture Capital (VC) is critical. In association with public funding programs, VC supports startups born in academic institutions and has a role to play in structuring the priorities of the ecosystem, guiding it towards applications with the greatest impact on society. This paper illustrates this thesis with a case-study: the experience of the first dedicated quantum fund, Quantonation I, chronicling its impacts on the production of scientific knowledge, job creation and funding of the industry. The paper introduces concepts to support the emergence of new startups and advocates for funding of scale-up quantum companies. The paper concludes with proposals to improve the impact of the industry by taking steps to better involve society-at-large and with a call for collaboration on projects focused on the applications with a large societal benefit.
Building on decades of fundamental research, new applications of Quantum Science have started to emerge in the fields of computing, sensing and networks. In the current phase of deployment, in which quantum technology is not yet in routine use but is still transitioning out of the laboratory, Venture Capital (VC) is critical. In association with public funding programs, VC supports startups born in academic institutions and has a role to play in structuring the priorities of the ecosystem, guiding it towards applications with the greatest impact on society. This paper illustrates this thesis with a case-study: the experience of the first dedicated quantum fund, Quantonation I, chronicling its impacts on the production of scientific knowledge, job creation and funding of the industry. The paper introduces concepts to support the emergence of new startups and advocates for funding of scale-up quantum companies. The paper concludes with proposals to improve the impact of the industry by taking steps to better involve society-at-large and with a call for collaboration on projects focused on the applications with a large societal benefit.
Quantum computing offers transformative computational capabilities, disrupting traditional investment paradigms and reshaping venture capital (VC) strategies. This paper examines its economic impact on VC, highlighting advancements in cryptography, materials science, and AI that create opportunities for startups and alter risk-reward dynamics. By analyzing trends and case studies, we reveal how quantum innovation accelerates cycles, redefines valuations, and reshapes global competition, guiding investors, policymakers, and entrepreneurs in navigating the emerging quantum landscape.
Abstract This chapter explores the ongoing substantial financial investments required for developing and commercializing quantum computing technology. Given the field’s high uncertainty and long-term potential, investments are crucial for advancing breakthroughs in cryptography, materials science, and complex system simulations. The chapter examines the rise of quantum computing funding from the private equity and venture capital standpoints, highlighting key players like IBM and Google and emerging firms such as Rigetti and IonQ. It provides a detailed analysis of private funding trends, valuations, and geographic distribution, underscoring the sector’s growth despite market volatility and regional concentration challenges. It also focuses on the discrepancies in funding allocation and performance among startups and the significant role of established companies like Microsoft, Google, and IBM in shaping the industry. Looking ahead, the chapter emphasizes the need for innovative financial models to assess investment returns, considering the nascent nature of quantum technology and the scarcity of financial data from private firms.
Abstract Quantum computing promises to overcome computational limitations with better and faster solutions for optimization, simulation, and machine learning problems. Europe and Germany are in the process of successfully establishing research and funding programs with the objective to advance the technology’s ecosystem and industrialization, thereby ensuring digital sovereignty, security, and competitiveness. Such an ecosystem comprises hardware/software solution providers, system integrators, and users from research institutions, start-ups, and industry. The vision of the Quantum Technology and Application Consortium (QUTAC) is to establish and advance the quantum computing ecosystem, supporting the ambitious goals of the German government and various research programs. QUTAC is comprised of ten members representing different industries, in particular automotive manufacturing, chemical and pharmaceutical production, insurance, and technology. In this paper, we survey the current state of quantum computing in these sectors as well as the aerospace industry and identify the contributions of QUTAC to the ecosystem. We propose an application-centric approach for the industrialization of the technology based on proven business impact. This paper identifies 24 different use cases. By formalizing high-value use cases into well-described reference problems and benchmarks, we will guide technological progress and eventually commercialization. Our results will be beneficial to all ecosystem participants, including suppliers, system integrators, software developers, users, policymakers, funding program managers, and investors.
As the first applications leap out of research laboratories toward commercialization, the global race for dominance in the maturing field of quantum technologies is becoming ever fiercer. To retain its historical lead and kick-start a continent-wide quantum-driven industry and accelerate market take-up, Europe has launched the Quantum Flagship, an ambitious €1 billion, 10 year endeavor. This article provides an overview of the underlying considerations and the current state of the initiative. Furthermore, it briefly presents the 20 projects selected to be at the core of the ramp-up phase of the initiative, which will address core applications of quantum technologies such as communications, computing, simulation, as well as sensing and metrology, all of which are supported by basic science. Finally, we present the broader ecosystem of European funding instruments and institutions which aim to create the next generation of disruptive technologies within quantum sciences, placing Europe as a worldwide knowledge-based industrial and technological leader in this innovative field.
This paper presents a formative market assessment of the quantum computing landscape in terms of market readiness of the technologies and the reported levels of investments. The findings presented in this paper are based on a quick scan of available literature combined with a perceptual map of the state-of-play. The paper considers the role of ‘big tech’ companies, the start-up ecosystem, and funding by nation states to identify key implications for the future of quantum computing developments. It highlights that although quantum computing technologies offer scope to revolutionise computing hardware and software, the development of a universal quantum computer will require breakthroughs in several areas including improvements in the quality of qubits, error correction, and demonstrable set of practical applications.
Quantum computing holds the potential to deliver great economic prosperity to the European Union (EU). However, the creation of successful business in the field is challenging owing to the required extensive investments into postdoctoral-level workforce and sophisticated infrastructure without an existing market that can financially support these operations. This commentary paper reviews the recent efforts taken in the EU to foster the quantum-computing ecosystem together with its current status. Importantly, we propose concrete actions for the EU to take to enable future growth of this field towards the desired goals. In particular, we suggest ways to enable the creation of EU-based quantum-computing unicorns which may act as key crystallization points of quantum technology and its commercialization. These unicorns may provide stability to the otherwise scattered ecosystem, thus pushing forward global policies enabling the global spread of EU innovations and technologies. The unicorns may act as a conduit, through which the EU-based quantum ecosystem can stand out from similar ecosystems based in Asia and the United States. Such strong companies are required because of the level of investment currently required in the marketplace. This paper suggests methodologies and best practices that can enhance the probability of the creation of the unicorns. Furthermore, we explore future scenarios, in which the unicorns can operate from the EU and to support the EU quantum ecosystem. This exploration is conducted focusing on the steps to be taken and on the impact the companies may have in our opinion.