Quantum Computing: A Shift in Venture Capital and Growth Prospects
In recent times, venture capital investment into quantum computing has seen a significant decline. According to the ‘State of Quantum 2024’ report, the investment plummeted by 50% last year. The figures dropped from a hefty $2.2 billion in 2022 to a modest $1.2 billion, as funds shifted towards the burgeoning field of Generative AI.
Despite this dip in private investment, government spending on quantum computing appears promising. It is forecasted to hit a staggering $40 billion over the next decade. This substantial funding reflects the growing recognition of quantum technologies’ transformative potential.
A New European Venture Fund: QDNL Participations
Seizing this opportunity, a new European venture fund has emerged with aspirations to capitalize on these trends. The uniquely named QDNL Participations has secured a €25 million first close on a proposed €60 million global fund aimed at supporting early-stage quantum startups.
QDNL is not restricting itself geographically; it plans to broaden its reach beyond national borders and invest more internationally. Previously, QDNL’s €15 million fund was concentrated on the Dutch quantum ecosystem, backing innovative startups like Qblox, QuantWare, QphoX, and Q*Bird.
“Quantum is a global field. There’s been incredible research done in the past decade or so and we’ve seen the emergence of a new startup ecosystem, with 600 or more companies coming up,” expressed Ton van ‘t Noordende, General Partner at QDNL Participations, in an interview with TechCrunch. “There’s also been more than $42 billion invested by over 20 governments in the last two or three years. So this has built up the infrastructure, the clean rooms, the facilities, and essentially de-risking the technology.”
Ton van ‘t Noordende
The Netherlands: A Budding Quantum Ecosystem
QDNL’s emergence signals the Netherlands’ ambition to establish itself as a pivotal player in the quantum computing ecosystem. The Dutch government, alongside EU financial backing, has already launched an initiative dubbed Quantum Delta NL—an endeavor that also happens to be an investor in QDNL.
This strategic move includes notable figures such as quantum computing pioneer Chad Rigetti as a venture partner in the US and specialist quantum VC Kris Kaczmarek in London, who joined as investment director from quantum VC firm 2xN. They are joined by advisors Nadia Carlsten (CEO of the Danish Centre for AI Innovation) and Charles Marcus from the University of Washington.
The Future Outlook
While quantum computing faced a rocky start earlier this year—with industry leaders like Mark Zuckerberg and Nvidia’s Jensen Huang expressing skepticism about its timeline—Nvidia quickly adjusted its stance. It later announced a Quantum-exclusive Nvidia Day at its upcoming event in March, signaling renewed confidence in the technology’s future.
This evolving landscape suggests that while immediate returns from venture capital may have waned, long-term prospects fueled by substantial government investments remain robust. As infrastructures solidify and international collaborations expand, quantum computing is poised for significant advancements.
