According to OpenOcean's general partner, Ekaterina Almasque, despite a temporary dip in venture funding, the quantum computing sector is steadily progressing towards the quantum era. Almasque believes that 2024 holds the potential for growing confidence in quantum computing's commercial promise, despite the relative lack of private capital flowing into the field.
Decline in Quantum Computing Investment
- Quantum computing investment from VC firms saw a significant decline in 2023, with a 50% drop in the US and even more substantial decreases in the Asia-Pacific region.
- The decline in VC interest can be attributed to various factors, including inflated expectations dating back to 2022 and the emergence of generative AI, which diverted attention and funding away from quantum startups.
- VC firms generally favor short- and medium-term returns in generative AI over quantum computing, leading to a lack of diverse investors in the quantum ecosystem.
- Despite the decline, industry experts do not see this as indicative of a "quantum winter" but rather part of a broader trend of declining investment in deep tech.
Government Spending on Quantum Initiatives
- Government spending commitments on quantum initiatives far outweigh private sector investment, with national governments allocating significant funds to quantum projects.
- The UK, US, EU, and 30 other governments have allocated $40-$50 billion to quantum initiatives, with 20 of them forming coordinated policy approaches to the technology.
Insights and Analysis
- Michael Orme, a senior analyst at GlobalData, argues that the mismatch in interest between the private and public sectors in quantum computing is not surprising. He suggests that governments prioritize quantum computing for national security and strategic science-based industries.
- Orme emphasizes the importance of creating a quantum ecosystem to maintain leadership in this critical technology sector.
While private sector investment in quantum computing may have declined in 2023, government commitments signal continued momentum towards realizing the full potential of quantum technologies.