Quantum Computers have the potential to become one of the most significant technological developments in the history of humankind. The technology could enable us to solve problems we haven't been able to unravel previously, including many essential issues across science and engineering. And we will likely see the creation of entirely new industries, products, and services, as quantum computing capabilities offer unique solutions to challenges currently unsolvable by today's computers.
At the beginning of the 20th century, the basis of a new theory within physics, that of quantum mechanics, was established by a number of leading scientists. This group includedPlanck, Einstein, and Bohr, and the theory described the behaviour of nature at subatomic levels: that atoms behave very differently when observed close up, compared to when they are observed at ordinary human scales. The laws of quantum mechanics were found to apply at all scales, and to govern everything from subatomic particles to stars and galaxies. These findings led to the first quantum revolution, which allowed researchers and engineers to use the physical laws outlined in many cutting-edge technologies. GPS, the transistors inside our computers and cellphones, and lasers are all consequences of those discoveries.
In the early '80s, Nobel Prize-winning physicist Richard Feynman asked, "What kind of computer will be used to simulate physics?" This question sparked the beginning of a second quantum revolution; and the idea of quantum computing was thus born. Quantum computers use the principles of superposition (- that electrons can be in two places simultaneously, or spinning clockwise and counterclockwise simultaneously) and entanglement (another peculiar effect in which measuring one particle immediately changes the results of measuring its far-off twin, even if they are light-years apart) to provide a kind of computing impossible with classical computers.
This second revolution also includes other technologies such as quantum internet, quantum clocks and sensors, and cryptography, amongst others.
One driving force in the development of this technology has been that, for a scientist in the field, building a quantum computer is a highly enticing intellectual challenge. To create one that works is an impressive scientific and technological feat – a hallmark in the history of mankind, and one that would bring fame and recognition.
Another driving force is the profound implications the technology has for current RSA cryptography (on which our economy and communications are based). A powerful quantum computer could read all (past and future) communications on the planet. Shor's algorithm has been waiting since 1994 for a machine capable of running it on a large scale to be built.
Researchers expect quantum computers to be capable of solving specific problems that classical computers can't. As such, quantum machines have the potential to transform industries from healthcare, through finance and agriculture, to national defence. And across all industries, there is a belief they could excel in solving optimisation problems.
One of the most promising applications is in materials science. Advanced materials are essential for many high-tech applications, including semiconductors, LEDs, solar cells, and batteries. Quantum computers can develop much more realistic simulations of these new materials than classical computers, leading to cheaper and more efficient devices.
For example, quantum computing has already been used to design new types of molecules that could be used in medicine or as chemical catalysts. Quantum machines may also help us understand how plants photosynthesize and solve other complex biological problems that have, up to now, been too complex for classical computers."
While quantum computers are excellent at solving specific problems, they aren't appropriate for every situation. Not all problems in classical computers turn out to be easy with quantum machines, and classical algorithms are not magically fast when run on a quantum computer. In some cases, quantum-inspired algorithms actually run more quickly on ordinary hardware. At the level of technology seen today, we should see Quantum Computing as an ally rather than a substitute for classical computers - a symbiosis where both work in parallel, benefitting one another.
Quantum Computers are still very primitive, but tech giants like Microsoft, Amazon, Google, and IBM already have (or are developing) proprietary quantum computers using different approaches and technologies (including superconducting circuits, trapped ions, or photonic, among many others) offering access to them via cloud service(s). Some startups like Quera, PsiQuantum or IQM have enjoyed measurable success also. This said, it is still impossible to predict which company(s) or technology(s) will go on to dominate.
Beyond this, today's limited offerings will likely soon be replaced by a new generation of platforms and ecosystems, triggering an increase in customer demand towards the end of the decade.
McKinsey estimated that the market will be worth $1 trillion by 2040, with the biggest sub areas including Quantum Computing (between $9billion and $90billion), Quantum communications ( $1 billion to $6billion), and Quantum sensing ( $1billion and $7billion), however it’s almost impossible to predict how accurate these predictions will be.
Across the globe, governments, academic labs, research groups, and institutions are exploring quantum technology, with an estimated $30B of public funding committed to date. Quantum independence is critical for all governments - with the possession of a quantum computer being seen as similar to an arms race - where very few countries will likely have one and, therefore presumably control their usage. The second quantum revolution widens the gap between developed and undeveloped countries, and nations that invest heavily in quantum technologies will see relevant advantages.
Governments like the USA and China have developed robust national quantum programs. European governments have invested around $7.2B in national programs and have deployed the EU Quantum Flagship initiative to evolve and commercialise quantum technologies in the European Union. In Spain, the Quantum-Spain project aims to boost the quantum ecosystem in the country.
Passionate developers and researchers from around the globe are working together on quantum developments, similar to the big data or AI scenes in recent years. There is a fantastic sense of community: From Pennylane to Quiskit or the myriad of open-source projects, everyone is passionate about what they're building, and there's a lot of excitement about the possibilities of the technology. As a consequence of this energy, many startups have been created in the last few years.
However, talent scarcity is a significant concern in quantum computing. Companies struggle to find people with the right skills for new positions in the emerging quantum job market. Finding qualified individuals with previous work experience can be difficult in an already scarce talent pool. Educating the future workforce is a challenge and will take considerable time.
Until recently, almost 90% of VC investment in Quantum has been directed at hardware startups (i.e., Rigetti, IonQ). However, we are now seeing the number of software and algorithm startups growing faster than hardware (due primarily to the massive capital investments needed to develop hardware and the expectation that many can create a lot of value). In recent months, rounds in quantum software companies have been growing, such as the $60M raised by TerraQuantum or the $33M by Classiq.
This said, investments in this space have tempered compared with the boom cycle of the 2018-2021 period (charting alongside current market dynamics). So far this year, and taking into account large rounds like the Series A of IQM ($130M) or the PsiQuantum $450M Series D, total investment is less than half that through at the end of Q3, compared to the same point in 2021.
Spain is one of the most advanced countries in Quantum Computing. The country has very well-respected universities and some of the most forward-thinking academic institutions regarding quantum technologies, such as ICFO, IFAE, DIPC or CSIC. Barcelona also hosts the BSC, which will soon host the first (and second) Quantum Computers in Southern Europe and will coordinate Quantum Spain, the national quantum computing ecosystem.
An increasing number of Spaniards are working abroad in top companies and institutions. The Spanish diaspora is present at all levels of seniority across some of the world's most renowned companies, including IBM, SandboxAQ, Google, D-Wave (among others).
With a strong academic grounding, associations like CUCO or Ametic and with a vibrant community of formal/informal groups, it is no wonder that Spain is seeing the development of a quantum start-up ecosystem. Examples include companies like Multiverse, Quantum Mads, and Inspiration Q that are exploring the application of quantum algorithms to solve complex problems in finance, logistics, and other areas. Quside and LuxQuanta work on quantum cybersecurity and encryption, while iPronics and Nanogap orbit around materials and components. In specific fields like pharma and chemistry, we have DevsHealth or Pharmacelera. Qilimanjaro is building a hardware/software full-stack solution, and Qcentroid is a marketplace for algorithms with a web3 twist.
It is worth mentioning that Spanish incumbents like Telefónica, BBVA, Santander, CaixaBank, Repsol or Acciona have started proofs of concept and have (or have plans) to develop internal quantum specialisation. Businesses need to understand quantum computing's impact on their business and industry, assess their quantum readiness, and formulate a quantum strategy.
We expect to see a host of new startups in areas such DevTools, where everything is yet to be built, as Quantum computing requires a whole new software stack at different levels of abstraction. Currently, most projects are open source, but more companies like Classiq will appear and try to become the equivalent for quantum developers of what Docker is today for web developers.
Also, the opportunity for general purpose algorithms is huge (Zapata, 1Qubit, and Qcware are pioneering here), and the same goes for solving particular issues for specific industries (Qubit Pharmaceuticals or Algorithmiq are good examples), as off-the-shelf products do not yet exist and most business models are still based on exploratory research projects in collaboration with industry. Current solutions are suitable for current small-scale quantum computers and need further development to support large-scale, fault-tolerant quantum machines.
Cybersecurity and quantum-ready communications are other exciting areas for the technology. EvolutionQ is an example of how startups are helping organisations and developers in the need to future-proof their digital systems and safeguard against future attacks. Fundamentally, the stakes are too high to be unprepared. New standards are emerging, which will significantly accelerate the transition rate to quantum-safe cryptography and communications.
We can never predict exactly where technology will lead us in the future, but we live in exciting times. Ones that give us a chance to witness the birth of new technologies like Quantum Computing and for us to see how they shape our lives.
If you share our interest in this topic, we would love to speak with you about it, as there’s always more to learn in the field.
We greatly empathise with Dr. John F. Clauser, the 2022 Nobel Prize for Physics, for his experiments with quantum entanglement. In a recent interview, he said, "I confess even to this day that I still don't understand quantum mechanics, and I'm not even sure I know how to use it all that well. And a lot of this has to do with the fact that I still don't understand it"
(Image generated with Playground AI)
Quantum Computers have the potential to become one of the most significant technological developments in the history of humankind. The technology could enable us to solve problems we haven't been able to unravel previously, including many essential issues across science and engineering. And we will likely see the creation of entirely new industries, products, and services, as quantum computing capabilities offer unique solutions to challenges currently unsolvable by today's computers.
At the beginning of the 20th century, the basis of a new theory within physics, that of quantum mechanics, was established by a number of leading scientists. This group includedPlanck, Einstein, and Bohr, and the theory described the behaviour of nature at subatomic levels: that atoms behave very differently when observed close up, compared to when they are observed at ordinary human scales. The laws of quantum mechanics were found to apply at all scales, and to govern everything from subatomic particles to stars and galaxies. These findings led to the first quantum revolution, which allowed researchers and engineers to use the physical laws outlined in many cutting-edge technologies. GPS, the transistors inside our computers and cellphones, and lasers are all consequences of those discoveries.
In the early '80s, Nobel Prize-winning physicist Richard Feynman asked, "What kind of computer will be used to simulate physics?" This question sparked the beginning of a second quantum revolution; and the idea of quantum computing was thus born. Quantum computers use the principles of superposition (- that electrons can be in two places simultaneously, or spinning clockwise and counterclockwise simultaneously) and entanglement (another peculiar effect in which measuring one particle immediately changes the results of measuring its far-off twin, even if they are light-years apart) to provide a kind of computing impossible with classical computers.
This second revolution also includes other technologies such as quantum internet, quantum clocks and sensors, and cryptography, amongst others.
One driving force in the development of this technology has been that, for a scientist in the field, building a quantum computer is a highly enticing intellectual challenge. To create one that works is an impressive scientific and technological feat – a hallmark in the history of mankind, and one that would bring fame and recognition.
Another driving force is the profound implications the technology has for current RSA cryptography (on which our economy and communications are based). A powerful quantum computer could read all (past and future) communications on the planet. Shor's algorithm has been waiting since 1994 for a machine capable of running it on a large scale to be built.
Researchers expect quantum computers to be capable of solving specific problems that classical computers can't. As such, quantum machines have the potential to transform industries from healthcare, through finance and agriculture, to national defence. And across all industries, there is a belief they could excel in solving optimisation problems.
One of the most promising applications is in materials science. Advanced materials are essential for many high-tech applications, including semiconductors, LEDs, solar cells, and batteries. Quantum computers can develop much more realistic simulations of these new materials than classical computers, leading to cheaper and more efficient devices.
For example, quantum computing has already been used to design new types of molecules that could be used in medicine or as chemical catalysts. Quantum machines may also help us understand how plants photosynthesize and solve other complex biological problems that have, up to now, been too complex for classical computers."
While quantum computers are excellent at solving specific problems, they aren't appropriate for every situation. Not all problems in classical computers turn out to be easy with quantum machines, and classical algorithms are not magically fast when run on a quantum computer. In some cases, quantum-inspired algorithms actually run more quickly on ordinary hardware. At the level of technology seen today, we should see Quantum Computing as an ally rather than a substitute for classical computers - a symbiosis where both work in parallel, benefitting one another.
Quantum Computers are still very primitive, but tech giants like Microsoft, Amazon, Google, and IBM already have (or are developing) proprietary quantum computers using different approaches and technologies (including superconducting circuits, trapped ions, or photonic, among many others) offering access to them via cloud service(s). Some startups like Quera, PsiQuantum or IQM have enjoyed measurable success also. This said, it is still impossible to predict which company(s) or technology(s) will go on to dominate.
Beyond this, today's limited offerings will likely soon be replaced by a new generation of platforms and ecosystems, triggering an increase in customer demand towards the end of the decade.
McKinsey estimated that the market will be worth $1 trillion by 2040, with the biggest sub areas including Quantum Computing (between $9billion and $90billion), Quantum communications ( $1 billion to $6billion), and Quantum sensing ( $1billion and $7billion), however it’s almost impossible to predict how accurate these predictions will be.
Across the globe, governments, academic labs, research groups, and institutions are exploring quantum technology, with an estimated $30B of public funding committed to date. Quantum independence is critical for all governments - with the possession of a quantum computer being seen as similar to an arms race - where very few countries will likely have one and, therefore presumably control their usage. The second quantum revolution widens the gap between developed and undeveloped countries, and nations that invest heavily in quantum technologies will see relevant advantages.
Governments like the USA and China have developed robust national quantum programs. European governments have invested around $7.2B in national programs and have deployed the EU Quantum Flagship initiative to evolve and commercialise quantum technologies in the European Union. In Spain, the Quantum-Spain project aims to boost the quantum ecosystem in the country.
Passionate developers and researchers from around the globe are working together on quantum developments, similar to the big data or AI scenes in recent years. There is a fantastic sense of community: From Pennylane to Quiskit or the myriad of open-source projects, everyone is passionate about what they're building, and there's a lot of excitement about the possibilities of the technology. As a consequence of this energy, many startups have been created in the last few years.
However, talent scarcity is a significant concern in quantum computing. Companies struggle to find people with the right skills for new positions in the emerging quantum job market. Finding qualified individuals with previous work experience can be difficult in an already scarce talent pool. Educating the future workforce is a challenge and will take considerable time.
Until recently, almost 90% of VC investment in Quantum has been directed at hardware startups (i.e., Rigetti, IonQ). However, we are now seeing the number of software and algorithm startups growing faster than hardware (due primarily to the massive capital investments needed to develop hardware and the expectation that many can create a lot of value). In recent months, rounds in quantum software companies have been growing, such as the $60M raised by TerraQuantum or the $33M by Classiq.
This said, investments in this space have tempered compared with the boom cycle of the 2018-2021 period (charting alongside current market dynamics). So far this year, and taking into account large rounds like the Series A of IQM ($130M) or the PsiQuantum $450M Series D, total investment is less than half that through at the end of Q3, compared to the same point in 2021.
Spain is one of the most advanced countries in Quantum Computing. The country has very well-respected universities and some of the most forward-thinking academic institutions regarding quantum technologies, such as ICFO, IFAE, DIPC or CSIC. Barcelona also hosts the BSC, which will soon host the first (and second) Quantum Computers in Southern Europe and will coordinate Quantum Spain, the national quantum computing ecosystem.
An increasing number of Spaniards are working abroad in top companies and institutions. The Spanish diaspora is present at all levels of seniority across some of the world's most renowned companies, including IBM, SandboxAQ, Google, D-Wave (among others).
With a strong academic grounding, associations like CUCO or Ametic and with a vibrant community of formal/informal groups, it is no wonder that Spain is seeing the development of a quantum start-up ecosystem. Examples include companies like Multiverse, Quantum Mads, and Inspiration Q that are exploring the application of quantum algorithms to solve complex problems in finance, logistics, and other areas. Quside and LuxQuanta work on quantum cybersecurity and encryption, while iPronics and Nanogap orbit around materials and components. In specific fields like pharma and chemistry, we have DevsHealth or Pharmacelera. Qilimanjaro is building a hardware/software full-stack solution, and Qcentroid is a marketplace for algorithms with a web3 twist.
It is worth mentioning that Spanish incumbents like Telefónica, BBVA, Santander, CaixaBank, Repsol or Acciona have started proofs of concept and have (or have plans) to develop internal quantum specialisation. Businesses need to understand quantum computing's impact on their business and industry, assess their quantum readiness, and formulate a quantum strategy.
We expect to see a host of new startups in areas such DevTools, where everything is yet to be built, as Quantum computing requires a whole new software stack at different levels of abstraction. Currently, most projects are open source, but more companies like Classiq will appear and try to become the equivalent for quantum developers of what Docker is today for web developers.
Also, the opportunity for general purpose algorithms is huge (Zapata, 1Qubit, and Qcware are pioneering here), and the same goes for solving particular issues for specific industries (Qubit Pharmaceuticals or Algorithmiq are good examples), as off-the-shelf products do not yet exist and most business models are still based on exploratory research projects in collaboration with industry. Current solutions are suitable for current small-scale quantum computers and need further development to support large-scale, fault-tolerant quantum machines.
Cybersecurity and quantum-ready communications are other exciting areas for the technology. EvolutionQ is an example of how startups are helping organisations and developers in the need to future-proof their digital systems and safeguard against future attacks. Fundamentally, the stakes are too high to be unprepared. New standards are emerging, which will significantly accelerate the transition rate to quantum-safe cryptography and communications.
We can never predict exactly where technology will lead us in the future, but we live in exciting times. Ones that give us a chance to witness the birth of new technologies like Quantum Computing and for us to see how they shape our lives.
If you share our interest in this topic, we would love to speak with you about it, as there’s always more to learn in the field.
We greatly empathise with Dr. John F. Clauser, the 2022 Nobel Prize for Physics, for his experiments with quantum entanglement. In a recent interview, he said, "I confess even to this day that I still don't understand quantum mechanics, and I'm not even sure I know how to use it all that well. And a lot of this has to do with the fact that I still don't understand it"
(Image generated with Playground AI)
