Quantum Technology – Investing at the Inflection Point

Key Findings:

• Quantum technology is now a tangible reality – Quantum sensors are undergoing field tests, quantum computers are achieving practical utility and large enterprises are expanding their quantum spending.
• The quantum market is massively expanding — Projected to grow from $1 billion today to $20 billion by 2030, and over $100 billion by 2040.
• Investors increasingly recognize the lucrative potential of quantum technology — A growing share of global startup funding has been directed towards this sector every year over the past five years.
• The industry’s future leaders are emerging — Fewer new startups are being founded, while established companies attract more capital, secure scarce talent, and form strategic partnerships.
• Investors need to weigh opportunities against risks across the quantum value chain — Companies must balance technical, competitive, and time-to-market challenges.

Dr. Callum Stewart at GP Bullhound, stated: “As investors start to recognise the groundbreaking potential of quantum technologies and are beginning to allocate accordingly, there is no one-size-fits-all approach to investing. As with every developing technology, each part of the value chain differs in its return, time horizon and risk profiles. For investors looking to allocate a small pocket of capital to capture the broad expansion of the market, we suggest looking at hardware agnostic investments like infrastructure software or supporting systems that are driving value creation today. Those with longer timeframes and more aggressive deployment plans should consider the underlying hardware or end application software for investment.

Q-CTRL CEO and Founder Michael Biercuk commented on the report: “The quantum technology landscape—and investment opportunity—is rapidly maturing. The first wave of quantum computing SPACs has taken major hardware manufacturers to the public markets, ‘full stack’ vertical integration has been overtaken by a partnership model, and the AI boom has captured the attention of less-focused quantum startups with poorly defined offerings.

This has left an expanded opportunity for specialist providers focused on building the quantum value chain through truly unique innovations. Companies that are able to turn vision and technical expertise into commercial products are standing out in critical areas, from specialist QPU fabrication to automation and performance-management infrastructure software. Through targeted commercial partnerships, this approach is accelerating the path to quantum advantage and highlighting the extraordinary value of parallel verticals such as quantum sensing for defense.

The quantum opportunity in 2024 is marked by an increased focus on delivering customer value and a rejection of vague and generic benefits. This is a healthy sign of maturation that promises outsized rewards for early investors.”

Enquiries
Dr. Callum Stewart, GP Bullhound at callum.stewart@gpbullhound.com
For press inquiries, contact: press@gpbullhound.com. 

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 12 offices spanning Europe and the US. For more information, please visit www.gpbullhound.com.