2023: The Heartbreaking Blow to VC Quantum Computing Investments

Tech Monitor reports that quantum computing investment from venture capital (VC) firms decreased by 50% in 2023, with the majority of the decline coming from US funds. The report states that VC investment in quantum computing fell to $1.2bn over the year, down from $2.2bn in 2022, despite extensive government commitments to fund quantum computing initiatives.“The findings signal that 2024 can become a year of growing confidence in quantum computing’s potential, despite still a relative lack of private capital flowing into that space. Significant use cases [are] emerging to unlock its commercial promise,” said OpenOcean’s general partner, Ekaterina Almasque.The report suggests that the decline in VC interest in quantum computing can be partially attributed to inflated expectations arising from previous years, along with a greater emphasis on generative AI in the short- to medium-term return over quantum startups. However, despite declining VC investment levels overall, some industry experts and vendors suggested a possible recovery in quantum computing investment in late 2023.