Over $8.5 Billion Invested In 241 Quantum Startups

A recent analysis by Constellation Research found 241 companies in the Quantum Computing space in seven categories driving $8.512 billion in investment to date.  A review of funding announcements, deals in pipe, and conversations with investors, demonstrated a tremendous appetite to fund all categories of the quantum ecosystem.  The funding to date does not include investments from established digital giants such as Amazon, Google, IBM, Intel, Microsoft, and Nviidia.

Across the seven categories, security represented the highest estimated market cap at $124.3 B followed by hardware companies at $23.2B.  Full stack vendors who deliver the complete quantum capabilities will drive $14.6 B in estimated market cap.  Software came in at $6.1 billion and communications registered a $5.8 B estimated market cap (see Figure 1).

Figure 1. Investors Flock To The Quantum Landscape

2021 Quantum Computing Market Valuations Breakdown


Source; Constellation Research, Inc.

The Bottom Line: Expect A Period Of Innovation and Consolidation Ahead

The Quantum revolution has begun.  Early investors have seen the potential and the market is entering a period of consolidation to acquire talent, intellectual property, and product offering roadmaps.  With over 241 startups in this space, Constellation expects at least a dozen full stack winners to emerge along with five to seven specialists in each category and emerging use case. Security will continue to receive the most funding and attention.  New players will continue to attract funding as the quantum field advances.  The early days of quantum are here and the winners will emerge in the next five years.

Your POV

What quantum use cases drive your interest? Where do you see the quantum players win?

Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your strategy efforts. Here’s how we can assist:

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