Private and corporate funding for quantum technology start-ups slumped 27 percent in the past year, even as public investment surged. The decline in private investments, to $1.71 billion from the all-time high of $2.35 billion in 2022, was due in part to greater interest in generative AI technologies, senior partner Rodney Zemmel and colleagues explain. Investors may still be evaluating quantum technologies’ potential for use in various sectors in the long term.
Image description:
A bar graph shows the annual investments in quantum technology start-ups from 2003 to 2023, in billions of dollars. For much of the past 2 decades, less than $100 million was invested in quantum technology start-ups. From 2014 to 2019, investments averaged about $200 million annually. In 2020, 2021, and 2022, interest in quantum technology start-ups soared, and investments reached nearly to $2.4 billion in both 2021 and 2022, but in 2023 dropped by about 27% to roughly $1.7 billion.
Footnote: Based on public investment data; actual investment is likely higher.
Source: PitchBook.
End of image description.
To read the report, see “Steady progress in approaching the quantum advantage,” April 24, 2024.