How Startups Drive Quantum Computing Innovation

PsiQuantum Achieves Breakthrough in Mass-Producing Light-Powered Quantum Chips American quantum computing startup PsiQuantum has announced a major breakthrough in manufacturing scalable photonic quantum chips, marking a significant step toward making practical quantum computing a reality. The company, which emerged from stealth mode in 2021, has been working on a light-powered (photonic) quantum computing approach, which was previously considered impractical due to hardware limitations. Why Photonic Quantum Computing? • Photonic quantum computers encode data in individual particles of light (photons), rather than in superconducting circuits like many other quantum systems. • This approach has key advantages: • Low noise compared to superconducting qubits. • High-speed operation due to the natural speed of light. • Seamless integration with fiber-optic networks, which could make quantum internet feasible. • However, the challenge has always been scaling up, as photons are difficult to control, detect, and stabilize in large-scale computations. PsiQuantum’s Breakthrough • In a paper published in Nature, the company unveiled a manufacturing process that enables large-scale production of photonic quantum chips. • The new hardware design solves key engineering problems, making it possible to reliably manipulate and measure photons at scale. • Unlike previous photonic quantum systems, which struggled with extreme hardware demands, PsiQuantum’s solution reduces errors and improves stability in complex computations. Implications for the Future of Quantum Computing • Scalability Achieved – This breakthrough could allow for mass production of quantum chips, removing a key bottleneck in commercial quantum computing development. • Quantum Networking Potential – With natural fiber-optic compatibility, photonic quantum computers could lead to highly secure quantum communications networks. • New Industrial Applications – The technology may soon be applied to optimization problems, cryptography, and materials science, revolutionizing industries that require complex simulations. The Bigger Picture PsiQuantum’s ability to mass-produce photonic quantum chips puts light-powered quantum computing in direct competition with other approaches, such as superconducting and trapped-ion quantum systems. If successful, it could make quantum computing more accessible, scalable, and commercially viable—a leap forward in the race to achieve practical quantum supremacy.

I recently had a chance to do due diligence for ~two dozen quantum tech startup pitches. Another pattern is hard to miss - not enough quantum software startups. Every deck I saw wants to build the device; none have a plan for the software needed to turn qubits into value. Yes, it’s rational that fabrication, cryogenics, and control electronics attract capital. But the ultimate value isn't in the hardware; it's in the applications. Because applications define: - Which problems actually matter to an industry. - What level of accuracy is "good enough" to be useful. - Which performance metrics move a real-world KPI, not just a theoretical benchmark. Looking ahead, fault-tolerant quantum computers will unlock powerful algorithms. But these capabilities won't appear "for free." We need: - Practical "oracles" - the bridges that translate real-world data into quantum-ready. - A sober analysis of runtime - how it scales with problem size, complexity, and required precision. - A plan for the output - what to do with a solution encoded in a quantum state. The Bottom Line for Investors & Builders: The smartest hedge is clear. For every dollar invested in qubits, we must put real money into: - Algorithm development - Software toolchains - Domain-specific validation That’s how we avoid a “field of dreams” where the devices arrive but the applications don’t. #QuantumComputing #DeepTech #VentureCapital #QuantumAlgorithms #SoftwareEngineering #TechStrategy

In this week's column, I report from Chicago on the city's efforts to build the Silicon Valley of quantum computing. For decades, the labs of Illinois and surrounding states have nurtured breakthroughs in nanotechnology, the life sciences and the internet itself. Time and again, the researchers behind those developments have gone elsewhere to commercialize their ideas. But business and political leaders in the region are determined to break that pattern by putting a bear hug around the next likely technological leap: quantum computing that leaves contemporary computers in the dust. The city will be home to the Illinois Quantum and Microelectronics Park, to be located on 128 acres of the old South Works site where U.S. Steel once employed 20,000 people. Related Midwest is lead developer for the park and surrounding property, a longstanding passion project for Illinois Gov. JB Pritzker. The anchor tenant is PsiQuantum, a Palo Alto, Calif.-based startup that plans to build a fault-tolerant quantum computer on the order of 1 million quantum bits, or qubits, which it said would give it the most power of any quantum computer at launch alongside the company’s project in Brisbane, Australia. The park is also slated to host a center where companies will develop applications to run on hardware such as the PsiQuantum system. The Defense Advanced Research Projects Agency (DARPA) will operate a proving ground at the park, evaluating the efficacy of quantum projects. “We have a right to win in quantum because of that research base, but on top of that we see the gaps that normally prevent this region from becoming an innovation ecosystem, and we’re intentionally trying to fill them,” said Kate Waimey Timmerman, chief executive of the Chicago Quantum Exchange. A Boston Consulting Group (BCG) forecast projects that total global quantum economic value creation will reach nearly $1 trillion by 2035, up from about $3 billion today. Illinois, Wisconsin and Indiana’s share of that windfall could reach nearly $80 billion by 2035, up from roughly $60 million. PsiQuantum Chief Business Officer Stratton Sclavos said quantum could have a huge impact on the creation of new drugs. Today, that means using classical computers to synthesize and test up to 200,000 potentially promising compounds, a process that might take 10 years and have a failure rate of 90%. A quantum-based effort might instead focus on high-precision simulation of 200 compounds that the system has targeted. PsiQuantum says its use of existing photonics will reduce costs and improve its scale, time to market and usefulness.

🔮 The Quantum Future Isn’t Just Silicon Valley—It’s Global. 🌍 Recently on the Impact Quantum podcast, we had a phenomenal conversation with Nir Alfasi, General Manager of the Israeli Quantum Computing Center (IQCC). What followed was one of the most insightful deep dives into not just where quantum computing is going—but how we build the ecosystem that gets us there. 💡 Here are a few big takeaways: 🧊 Quantum Innovation Needs Infrastructure At the IQCC, startups can test cryogenic hardware without spending millions on lab space. They can run real algorithms on actual superconducting quantum processors. And they can do it all remotely, with access down to the pulse level. That’s a massive accelerator for the industry. 🌐 From Silicon Valley to Tel Aviv—and Beyond The quantum revolution isn’t tied to a single time zone. From Montreal to Maryland, Chicago to Israel, innovation is happening globally. IQCC is a perfect example of how to do it right: partner with government, support startups, and invest in both hardware and people. 🤝 Ecosystems > Empires Nir explained it best: just like you don’t make your own cables when building a PC, quantum companies shouldn’t reinvent everything. We need specialists, modular components, and collaborative standards. The future of computing isn’t vertical—it’s horizontal. 👩💻👨🏭 Quantum Needs More Than PhDs There’s a bottleneck in the talent pipeline, but not because the skills are out of reach. IQCC is training existing engineers and physicists to pivot into quantum in just a few months. The result? A practical, scalable approach to workforce development. ⚙️ Hybrid Architectures Are the Now (Not the Future) By integrating NVIDIA’s Grace Hopper superchips with quantum processors, IQCC is enabling real-time hybrid workflows. We’re talking microsecond-level quantum-classical interaction. This is where quantum gets useful—now. 📣 Final Thought: Quantum computing won’t change everything overnight. But when it does hit scale, it’ll do to classical systems what they did to the abacus. The future is being built—not just by the giants, but by collaborative, visionary hubs like IQCC. Want to get ahead? Start now. Be quantum curious. 🎧 Listen to the full episode at impactquantum.com 📰 Subscribe to the newsletter 🤝 Let’s build the ecosystem together #QuantumComputing #FutureOfWork #InnovationEcosystem #ImpactQuantum #IsraelTech #HybridComputing #QubitCurious #WorkforceDevelopment #DeepTech #DataCenters #STEMEducation

Quantum computing is no longer speculative—it’s becoming an investment priority. In 2023, European quantum startups outpaced North America, raising $781 million (three times the $240 million raised in the US). Globally, quantum startups raised $2.2 billion, a massive jump from $522 million in 2019. This isn’t happening in a vacuum. Governments are fueling the momentum. The UK has committed $4.3 billion to quantum technologies, while Germany has pledged $3.7 billion. At the same time, VC interest is holding steady, even as funding dries up in other tech sectors.   Quantum technology will have a wide-reaching impact, from cybersecurity and financial modeling to drug discovery and materials science. Pharma will likely see the earliest impact (drug development and molecular simulations using quantum).   In 2022, Finnish startup Algorithmiq raised $4 million for quantum-powered drug discovery, while Paris-based Qubit Pharmaceuticals secured $17 million for molecular simulations. Another European company, Terra Quantum AG, based in Switzerland, raised $75 million to scale its quantum-as-a-service model, which has direct applications in pharma and beyond.   Big Tech is also all-in. Google, IBM, Intel Corporation, and NVIDIA are pouring resources into quantum hardware and software. Meanwhile, publicly traded quantum companies have seen their stocks surge, signaling growing institutional confidence.   At APEX Ventures, we invest in revolutionary quantum startups. We are partnered with kiutra, enabling the second quantum revolution with easy-to-use and sustainable cryogenics, and planqc, building quantum computers that store information in individual atoms.   For founders and investors, the question isn’t whether quantum will matter—it’s when. The trajectory is clear: capital is flowing, enterprise adoption is accelerating, and governments are fully committed. If AI dominated the last decade, quantum may own the next.   #Venturecapital #AI #Deeptech #Startups  Follow us at APEX Ventures and subscribe to our newsletter for exclusive content on groundbreaking Deep Tech startups:   🔗 https://t2m.io/EV2qHQuo

A few weeks ago, I heard about EeroQ Quantum Hardware ’s unique qubit platform in a podcast with CEO Nick Farina. Their approach is one the industry can’t afford to overlook. Founded in 2017, EeroQ is doing something quite different in the quantum space. Instead of following the well-trodden path, they’re building a large-scale quantum computer using trapped electrons floating above pools of superfluid helium as their qubits. Yes, you read that right—superfluid helium. This approach isn’t just novel—it’s packed with potential. We’re talking long coherence times, high qubit connectivity, CMOS compatibility, fast gates, and the capacity to fit millions of electrons on a single chip. While their technology is still in the early stages of engineering, I’m incredibly excited to see how EeroQ matures and how it could reshape the quantum landscape. EeroQ also recently moved to a new 9,600-square-foot headquarters in Humboldt Park, Chicago—right in the heart of a burgeoning quantum technology hub. With Illinois Governor JB Pritzker investing $500 million in quantum initiatives, Chicago is rapidly becoming a key player in this field. EeroQ’s move couldn’t be more timely. The company's approach is a fresh reminder that the future of quantum computing isn’t just in the hands of the giants. Smaller, nimble startups are quietly exploring new frontiers, and I’m eager to see how they shape the industry. What other niche quantum startups are out there betting on exotic qubit platforms? Enjoy this? ♻️ Repost it to your network. Image Credits: EeroQ (check out their website for more amazing sketches and info about their platform)

A new quantum contender just stepped onto the field and they’re not starting small. Q‑Factor has emerged from stealth with $24M in funding, backed by Intel Capital and a coalition of deep‑tech investors. Their mission is ambitious: build a scalable, fault‑tolerant quantum platform by rethinking the entire qubit architecture from the ground up. What makes this notable isn’t just the capital it’s the timing. As the industry pushes past prototype-era limitations, Q‑Factor is entering with a clean slate, a physics‑first design philosophy, and a roadmap aimed directly at error‑corrected quantum systems. Their approach blends novel materials, advanced control electronics, and a modular architecture designed for manufacturability. This is exactly the kind of company that signals where the sector is heading: • Purpose‑built quantum hardware instead of incremental upgrades • Manufacturing‑ready designs instead of lab‑locked prototypes • Strategic backing from semiconductor giants who understand scale With Intel Capital behind them, Q-Factor isn’t just another startup they’re a potential anchor in the next wave of quantum hardware companies built for real‑world deployment. Quantum’s next chapter will be written by teams that can merge physics, fabrication, and systems engineering into a single executable roadmap. Q‑Factor is stepping into that arena with momentum.🖤🔥 #QuantumComputing #DeepTech #QuantumHardware #IntelCapital #QFactor #QuantumInnovation #TechFunding #FutureOfComputing #SuperconductingQubits #QuantumEcosystem #NextGenTech