A new report reveals a significant decline in venture capital investments in quantum startups, dropping by 50 percent globally. According to the report released by IQM Quantum Computers, OpenOcean, a prominent European venture capital firm, and Lakestar, a leading European technology investor, funding for quantum startups decreased from $2.2 billion in 2022 to approximately $1.2 billion in 2023. The United States experienced an even larger decline of 80 percent, while Europe, the Middle East, and Africa saw a modest growth of three percent.
Contrary to the decline in investment, the report suggests that interest in quantum technology remains strong. The overall decrease in technology investing is attributed as the primary reason for the decline in venture capital toward quantum startups. Despite this, more than 30 governments worldwide have demonstrated their commitment to quantum technologies by pledging over $40 billion in public funding. Furthermore, over 20 of these governments have developed coordinated policies, funding initiatives, and roadmaps to support the advancement of quantum technologies.
Although the drop in investment reflects a current trend, the preparation for a quantum era continues. Over 300 end users across various sectors such as healthcare, financial services, and material sciences are already exploring potential use cases and building quantum readiness. While achieving quantum advantage may still be years away, these forward-thinking organizations are taking proactive measures today to equip themselves for the future of commercial quantum computing.
Dr. Jan Goetz, CEO and co-founder of IQM Quantum Computers, emphasized the significance of this ongoing preparation. He stated, With the potential of quantum advantage on the horizon, organizations need to seize the opportunity to prepare for the commercialization of quantum computing. Despite the recent decline in investment, the commitment from governments and end users indicates a strong belief in the transformative power of quantum technologies.
As the landscape of technology investing takes a temporary dip, the promising future of quantum technologies continues to captivate the interest of governments and industries globally. The report highlights the resilience of the quantum sector, with substantial public funding commitments and growing collaboration among governments. As the world awaits the quantum era, organizations across sectors are actively embracing the potential benefits and ensuring they are primed for the advent of commercial quantum computing.
