VCs Flee Quantum for AI, But Governments Double Down

Last year, venture capital investment in quantum computing took a nosedive, plummeting by a staggering 50%—from $2.2 billion in 2022 to just $1.2 billion in 2023. Why? The siren call of Generative AI lured investors away. But don’t count quantum out just yet. Governments worldwide are betting $40 billion over the next decade to keep the quantum dream alive. And now, a bold new European fund is stepping into the ring to capitalize on this seismic shift.

Meet QDNL Participations: Europe’s Quantum Powerhouse

Enter QDNL Participations, a Dutch VC fund with a quirky name and a laser focus on quantum startups. They’ve just hit a €25 million first close on their proposed €60 million global fund, aiming to back early-stage quantum innovators. But here’s the kicker: QDNL isn’t just staying in the Netherlands. They’re going global, building on their previous €15 million fund that turbocharged Dutch quantum startups like Qblox, QuantWare, QphoX, and Q*Bird.

“Quantum is a global field. We’ve seen over $42 billion invested by governments in the last few years, building the infrastructure and de-risking the technology. The startup ecosystem is exploding with 600+ companies. This is just the beginning.”

Ton van ‘t Noordende, General Partner at QDNL Participations

The Netherlands: Europe’s Quantum Frontier

The Netherlands isn’t just dipping its toes into quantum—it’s diving in headfirst. Backed by EU funding, the Dutch government has launched Quantum Delta NL, a massive initiative to position the country as a quantum computing hub. And guess what? Quantum Delta NL is also an investor in QDNL. Talk about stacking the deck.

A Dream Team of Quantum Visionaries

QDNL isn’t playing small. Their team reads like a who’s who of quantum computing:

• Chad Rigetti, quantum computing pioneer and venture partner in the US.
• Kris Kaczmarek, quantum VC specialist and investment director from 2xN in London.
• Nadia Carlsten, CEO of the Danish Centre for AI Innovation.
• Charles Marcus, quantum expert from the University of Washington.

Quantum’s Rocky Start to 2024

It hasn’t been all smooth sailing for quantum computing this year. Tech titans like Mark Zuckerberg and Nvidia’s Jensen Huang have been skeptical about when quantum will truly arrive. But Nvidia did a quick 180, announcing a Quantum-exclusive Nvidia Day at their March event. Clearly, they’re hedging their bets.

The Bottom Line: Quantum Isn’t Dead—It’s Just Getting Started

While VCs may be chasing the shiny allure of AI, governments and visionary funds like QDNL are laying the groundwork for a quantum revolution. The infrastructure is being built, the startups are multiplying, and the money is flowing. Quantum computing might be down, but it’s far from out. Buckle up—this is going to be one hell of a ride.