The landscape of the quantum start-up ecosystem

Abstract

The second quantum revolution has been producing groundbreaking scientific and technological outputs since the early 2000s; however, the scientific literature on the impact of this revolution on the industry, specifically on start-ups, is limited. In this paper, we present a landscaping study with a gathered dataset of 441 companies from 42 countries that we identify as quantum start-ups, meaning that they mainly focus on quantum technologies (QT) as their primary priority business. We answer the following questions: (1) What are the temporal and geographical distributions of the quantum start-ups? (2) How can we categorize them, and how are these categories populated? (3) Are there any patterns that we can derive from empirical data on trends? We found that more than 92% of these companies have been founded within the last 10 years, and more than 50% of them are located in the US, the UK, and Canada. We categorized the QT start-ups into six fields: (i) complementary technologies, (ii) quantum computing (hardware), (iii) quantum computing (software/application/simulation), (iv) quantum cryptography/communication, (v) quantum sensing and metrology, and (vi) supporting companies, and analyzed the population of each field both for countries, and temporally. Finally, we argue that low levels of quantum start-up activity in a country might be an indicator of a national initiative to be adopted afterwards, which later sees both an increase in the number of start-ups, and a diversification of activity in different QT fields.

Building a quantum‐ready ecosystem

“…For start-ups data, we used the numbers from ref. [1] and the database maintained and updated by QURECA. For private investments, we used the data from the Quantum Technology Investment Update 2022 report published by The Quantum Insider [51].…”

“…This process brings a necessary cohesion between the technical progression and market readiness of a quantum technology, offering a comprehensive view of its trajectory from laboratory to market. The initial QTRLs (1)(2)(3), where technologies are in the research and development phase, correspond to QCRL 1, where the problem-solution fit is being explored. As the technology progresses to the prototype phase (QTRLs 4-5), it aligns with QCRL 2 and 3, where market validation and MVP development are occurring.…”

“…A global effort to use quantum phenomena, such as entanglement, superposition, and coherence to create radically new technologies has resulted in the verge of the second quantum revolution. We can already see quantum technology-based products prevailing in the market and an increasing number of companies [1], organisations, governments [2], and individuals making an effort to build a global quantum ecosystem. The prevalent question now is how to use quantum technology and not when quantum technology makes its appearance.…”

Why should and how can quantum technologies be leveraged at national levels?

“…There are a number of other aspects that could continue to hold QT investments in lagging countries including market risks as institutions have little to no investments key performance indicators knowledge and global ecosystem activities awareness both required to discover their local market potentials and make related investments. The good news, though, number of these barriers may be lowered down by technical demonstrations and proven scientific advancements, which, as it was the case for the global ecosystem [26], could encourage VCs to boost startups. Generally speaking, well investments in preparing the workforce, raising the awareness, and defining needs, can lead to a more smooth technology transition.…”

“…Accordingly this has stimulated private efforts angel investors and venture capitalists (VCs) to join the quantum race resulting in boosting startups in many nations [19,25,26].…”