In January 2024, IQM Quantum Computers, a global leader in building quantum computers, OpenOcean, a leading European venture capital firm, and Lakestar, the leading European technology investor, have released the OpenOcean–IQM–Lakestar State of Quantum 2024 Report, in association with The Quantum Insider (TQI). The report shows that in Europe quantum computing has been resilient to overall downturns in the global economy, with continued growth backed up by strong government backing and continued investment momentum.

The US experienced an investment pullback, which is attributed to an overall decline in technology investing, and not to falling interest in quantum technology. Outside the US, quantum investments showed resilience in 2023, and governments are picking up the slack with major new national quantum funding commitments. This report draws insights from in-depth interviews with a wide range of enterprise end users, vendors and research institutions, including HSBC, Dell, Federal Reserve, Citi & Moderna. It analyses investment data from TQI and tracks the continued progress in national quantum computing centres across Europe and North America.

The report aims to provide clarity on key themes around the traction of quantum computing use cases and national quantum strategies, the interplay with AI, and recommendations for developing quantum-readiness. The latest TQI data reveals several notable year-on-year comparisons:

• A 50% drop occurred in venture capital invested into quantum startups from $2.2 billion in 2022 to around $1.2 billion in 2023 globally – Europe, the Middle East and Africa grew by 3%, the United States saw an 80% decline, and the Asia-Pacific region declined by 17%.
• Over 30 governments have committed to more than $40 billion in public funding commitments to quantum technologies which will be deployed in the next 10 years. Among these governments actively involved in quantum technologies, over 20 have formulated coordinated policies, funding, and roadmaps. Annual government funding commitments to quantum represent an estimated 2x the quantum VC investment peak in 2022.
• National labs and quantum computing centres have accelerated practical applications with dedicated quantum computing centres and hubs emerging.

In 2023, the United States saw the biggest fall in venture funding (~80% decline). Yet, this decrease was primarily explained by 2022 being a significant year for quantum technology investments with large rounds fuelled mainly by Special Purpose Acquisition Companies (SPACs) and some large Series B and later financing rounds. Comparatively, the Asia-Pacific (APAC) and Europe, the Middle East, and Africa (EMEA) regions showed greater resilience with declines of ~17% in the former and ~3% growth in the latter in 2023 versus last year.

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