Quantum entrepreneurship, dream or reality?
When people hear words like “quantum computing” or “quantum sensing”, it’s immediately sci-fi.
However, the ones that can master quantum technologies will be the next tech disruptors.
And that time is closer than we think.
Last Thursday Verve Ventures brought an interesting webinar on quantum entrepreneurship with industry experts: Oliver Tonneau (Partner at Quantonation) — Alexander Regnat (Co-Founder & Managing Director at Kiutra) — Mathieu Munsch (CEO Qnami) — Emma Schepers (Investment Associate at Verve Ventures) — David Sidler (Head of Investor Relations & Communications at Verve Ventures).
But, what are quantum technologies?
Quantum tech comprehends a group of devices and protocols that are designed with quantum physics principles, that are different from classical physics. [1]
An example?
Quantum computing.
This technology uses Qubits for its computations. Unlike normal bits, which are either 0 or 1, Qubits operate in a spectrum and can overlap the states. With this characteristic, quantum machines are capable of solving computationally difficult problems that neither supercomputer could handle!
If you want to know more, you can click here to see a great video on quantum computing.
However, the experts of this webinar classify the quantum segment into 3 main areas of application:
1. Quantum computing: introducing a new way of doing computations for machines through the use of Qubits.
2. Quantum sensing: used to measure things that were impossible to approach in the past.
3. Quantum communications: a broad area that includes quantum teleportation, quantum information processing and quantum cryptography [2].
Why are they so important?
Because they enable a new way of operating that makes possible tasks that were unbelievably difficult to perform.
It is the case of drug discovery, in which classic computation can only compare molecules of a small size. Quantum technology enables the comparison of bigger molecules, allowing an optimized drug design. [3]
Quantum tech can be also used for resistant cryptography, communication, and asset optimization in finance.
Why are they not in the market?
Well, firstly Business Wire writes that the quantum market will account for $31.57 billion by 2026. [4]
Not bad.
However, This world needs to create a way out from laboratories to the market.
Unfortunately, You cannot develop this kind of technology in your garage.
It is also an extremely various world. For example, Qubits have different characteristics and capacities to scale.
Scientists should turn into entrepreneurs to make this technology marketable.
To do that, Venture Capitals will play a significant role; not only in terms of financing but also in operations and market support.
The other key players are corporates.
They are the lead users on which start-ups can test and improve their products. Luckily enough, the interest from banks and computer companies is high. Institutions are more than willing to collaborate for the development of these devices.
What are some examples of companies and business models?
Pasqal has been the most mentioned venture in the webinar.
They build quantum processing units with the aim of selling these devices to companies.
Property selling or renting is the main objective of this industry.
However, the experts explained that things get different when we talk about software.
Quantum software is designed to run on quantum machines. Nevertheless, researchers have developed algorithms that allow to run this kind of SW on classic devices. Nevertheless, this happens on a “case by case” basis, turning the business model into a consulting one. Making it not scalable as a software sale.
Sci-fi or not, it is the time for VCs to invest in this market in order to be ahead of the innovation curve. This is not a matter of ROI, but of taking part in the second technology revolution.
