TLDR

A new report shows a 50 percent global drop in venture capital invested into quantum startups from $2.2 billion in 2022 to around $1.2 billion in 2023. The US saw an even bigger decline at 80 percent, while Europe, the Middle East, and Africa grew by three percent. The report attributes the drop to an overall decline in technology investing rather than to falling interest in quantum technology.

Key Points:

• Investment in quantum startups dropped by 50 percent globally.
• The drop is attributed to a decline in overall technology investing rather than a lack of interest in quantum technology.
• Over 30 governments have committed to more than $40 billion in public funding for quantum technologies.
• Preparations for the quantum era are underway with over 300 end users exploring use cases and building quantum readiness.
• Quantum advantage, where quantum computing surpasses classical computing, is potentially years away.

Summary:

A new report released by IQM Quantum Computers, OpenOcean, and Lakestar reveals that venture capital investment in quantum startups has declined by 50 percent globally. The US saw an 80 percent decline, while Europe, the Middle East, and Africa experienced a three percent growth. However, the report attributes this drop to an overall decline in technology investing, rather than a lack of interest in quantum technology itself.

Despite the decline in investment, over 30 governments have committed more than $40 billion in public funding to support the development of quantum technologies in the next decade. These governments have formulated coordinated policies, funding, and roadmaps to prepare for the quantum era.

Furthermore, the report highlights that over 300 end users across various sectors, such as healthcare, financial services, and material sciences, are already exploring use cases and building quantum readiness. These organizations are taking steps to prepare for commercial quantum computing, even though quantum advantage, where quantum computing surpasses classical computing, is potentially years away.

Dr. Jan Goetz, CEO and co-founder of IQM Quantum Computers, emphasized the steady progress in the quantum field in 2023. Companies successfully published and followed quantum roadmaps, resulting in larger qubit counts and initial error correction. Real systems were deployed in national labs, crossing into practical applications. However, the algorithmic side of quantum computing remains less predictable, with software improvements dependent on hardware progress.

In conclusion, while investment in quantum startups has declined in recent years, interest and preparations for the quantum era remain strong. Governments have committed significant funding, and end users across sectors are exploring the potential of quantum computing. The journey towards full-scale commercial problem-solving in quantum computing continues, with progress being made in both hardware and software.