TLDR: Quantum companies received 50 percent less venture capital funding in 2023 compared to the previous year, according to a report by The Quantum Insider. The decline in funding can be attributed to investors shifting their focus to generative AI and taking a more cautious approach to risky bets on Silicon Valley startups. The US saw an 80 percent decline in venture capital for quantum, while APAC dropped by 17 percent and EMEA grew slightly by three percent. However, the report insists that this decline does not indicate a “quantum winter” and that progress is still being made in the quantum industry. The report highlights a number of challenges facing the quantum sector, including the need for on-premise quantum compute resources for data security reasons and the expectation for quantum projects to show a “roadmap to revenue” before receiving further investment.
Investors threw 50% less money at the quantum sector last year, with funding falling from $2.2 billion in 2022 to $1.2 billion in 2023
Investors shifted their focus to generative AI and took a more cautious approach to risky bets on Silicon Valley startups
Quantum companies in the US saw an 80% decline in venture capital, APAC dropped by 17%, and EMEA grew slightly by 3%
Despite the decline in funding, the report denies a “quantum winter” and states that progress is still being made in the quantum industry
The report highlights the need for on-premise quantum compute resources for data security reasons
Quantum projects are expected to show a “roadmap to revenue” before receiving further investment
