Will Europe play a decisive role in quantum computing in the coming years?
Europe largely missed the AI revolution. When the French Mistral closed its first investment round in 2023, OpenAI had already raised more than 13 billion dollars and built up a solid lead. DeepMind, once one of the greatest European AI promises, also fell into Google’s hands as early as 2014. In quantum computing, Europe seems unlikely to repeat that history.
New figures from PitchBook show that European quantum companies attracted 404 million dollars in venture capital in the first quarter. North America raised only slightly more at 417 million dollars. This is striking, because in the broader startup world, European companies on average raise only a quarter of the capital that flows to American enterprises.
Strong research base pays off
Europe has held a strong position in fundamental quantum research for years. That scientific basis is now increasingly translating into commercial companies. Quantum computing is evolving into a technology with which companies want to develop concrete applications.
The United Kingdom and the European Union have reportedly allocated more resources to quantum investment than the US.
Several recent investment rounds went to universities and research institutions. Oxford Quantum Circuits originated at the University of Oxford, Quantum Motion was founded by researchers from Oxford and University College London, and the French Quobly grew out of the CEA-Leti research center. These institutions demonstrate that Europe is increasingly successful in commercializing its research.
Governments are helping to drive progress
Europe often excelled in research in the past but lagged behind in commercialization; now governments are consciously trying to break that pattern. Both national investment banks and European funds are investing in young quantum companies.
According to PitchBook, the United Kingdom and the European Union together have even allocated more public funds for quantum investments than the United States. This financial support is intended to ensure that promising companies can grow without being acquired by American technology companies at an early stage. This is a significant difference from the AI sector, where many European innovations were ultimately scaled up outside of Europe.
The technology is still in its infancy
The strong investment figures do not mean that Europe has already won the race. Quantum computing is still in an early stage of development. Practical applications remain fairly limited for now, and the sector is still looking for the moment when quantum computers can convincingly outperform classical systems.
While companies like IBM, Google and Microsoft are making great progress, the technology remains complex and commercial deployment is not yet a reality. The coming years will be decisive for which players ultimately dominate the market.
No ‘winner’ yet
Precisely because the market is still so young, everything is still up for grabs. Unlike with AI, there is no untouchable market leader today. Europe has strong research centers, a growing ecosystem of startups, and governments that are willing to invest heavily.
This offers a unique opportunity. Europe largely watched the AI revolution from the sidelines, but we can still make a difference in quantum computing. Success is by no means guaranteed, but for the first time in a long while, Europe does not seem to be starting an emerging key technology at an immediate disadvantage.