The latest TQI data reveals several notable year-on-year comparisons

A 50% drop occurred in venture capital invested into quantum startups from $2.2 billion in 2022 to around $1.2 billion in 2023 globally

• Europe, the Middle East and Africa grew by 3%
• The United States saw an 80% decline
• APAC region declined by 17%

Over 30 governments have committed to more than $40 billion in public funding commitments to quantum technologies which will be deployed in the next 10 years.

Of these governments actively involved in quantum technologies, over 20 have formulated coordinated policies, funding, and roadmaps.

National labs and quantum computing centres have accelerated practical applications with dedicated quantum computing centres and hubs emerging.

Annual government funding commitments to quantum represent an estimated 2x the quantum VC investment peak in 2022.

 

Image: TOTAL PRIVATE INVESTMENT IN QUANTUM TECHNOLOGY

 

Image: TOTAL PRIVATE INVESTMENT BY REGION

 

Key themes from interviews with thought leaders across the quantum value chain

1. ‍Developing internal quantum expertise and readiness is becoming a top priority for leading organisations across sectors like financial services and pharmaceuticals.‍
2. Experts are aligned on the short-term importance of quantum hybrid systems, recognising their potential to unlock immediate value for businesses.‍
3. There is not a quantum winter, but the investment landscape is certainly colder. Start-ups need to be realistic, and manage their funding roadmaps carefully.‍
4. Governments are important sources of patient capital to provide long-term backing for quantum, and overcome the high initial costs of Research & Development.‍
5. Artificial intelligence and quantum computing are technologies that can benefit from each other, with lots of early research into use cases like generative chemistry and digital twins. However, Investors should take care that the hype around AI does not cannibalise attention on quantum.

 

Image: VENTURE CAPITAL INVESTMENT VS. GOVERNMENT FUNDING

 

Image: GOVERNMENT FUNDING LANDSCAPE

 

Acknowledgements

• IQM Quantum Computers – Michael Bruce, Hoang-Mai Nguyen, Sylwia Barthel de Weydenthal, and Raghunath Koduvayur, their consultants Henrikki Mäkynen and Sanja Fagerstrom, and their agency partners at Axicom: Marcus Birke, Daria Zhukova, and Robert Shrimpton; and their agency partners at Netprofile: Jirimiko Oranen, Judit Vikman, and Laura Kulmakivi.
• OpenOcean – Ekaterina Almasque & Ollie Sellers, their agency partners at Bamla: Karolina Miller; & their agency partners at Resonance: Alex Izza, Daniel Harrington, and Laura Cameron.
• Lakestar – Stephen Nundy, Christina Franzeskides, Ninja Struye & their agency partners at Kekst CNC: Tom Climie, and Marisa Wagner.
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• Terra Quantum – Markus Pflitsch, Karan Pinto, Victoria Jodl and Florian Neukart.
• QMware – Georg Gesek and Mira Dechant.
• The Quantum Insider – Alex Challans, Matt Swayne, Jakob Pii and Evan Kubes.
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• Mekena Metcalf, Senior Quantum Computing Research Scientist at HSBC
• Ken Durazzo, VP, Dell Research
• Fabio Sanches, Quantum Computing Director at the Federal Reserve
• Tahmid Quddus Islam, Quantum Technologies Lead at Citi Global Insights
• Michael Streif, Quantum Computing Scientist at Boehringer Ingelheim
• Alexey Galda, Associate Scientific Director, Quantum Algorithms and Applications at Moderna
• Quantum Research Manager at Global Multi-Industry Conglomerate
• Brad Kim, Chief Quantum Officer & Senior Executive VP

 

 

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