Quantum computing is an emerging technology that harnesses the properties of quantum physics to deliver exponential leaps in computation power. As this revolutionary technology matures, many companies are racing to develop quantum hardware and software platforms. For investors, the quantum computing sector presents exciting opportunities to get in early and tap into the transformative potential of this technology. In 2022, quantum startups raised over $700 million in venture capital, underscoring the momentum behind quantum. This article analyzes key quantum computing companies to watch and factors to consider when investing in this space.
Leading quantum hardware companies make rapid progress on qubits and quantum systems
On the hardware side, companies like IonQ, Rigetti and D-Wave have made major advances in developing quantum processing units (QPUs). IonQ uses trapped ion technology and recently unveiled a system with over 500 qubits. Rigetti leverages superconducting qubits and has reached 128 qubits. Quantum annealing pioneer D-Wave also produces commercial systems up to 5000+ qubits. These firms are racing to increase qubit counts and coherence times. Achieving quantum advantage will be a major milestone, giving quantum computers mastery over classical systems for certain workloads. Investors should track hardware improvements as a key metric of progress.
Quantum software startups build tools and applications to deliver quantum advantage
Beyond hardware, software startups like Classiq, QC Ware and Zapata are creating tools to program quantum computers and develop quantum-enhanced applications. These include optimizing machine learning, quantum simulation, cryptography and more. Their software aims to simplify quantum development and help enterprises utilize quantum capabilities. As hardware improves, the value of quantum software stacks will become more apparent. Wise investors keep an eye on innovative startups building the quantum software ecosystem.
Cloud access and quantum-as-a-service create new opportunities for quantum investment
The emergence of cloud-based quantum computing services like Amazon Braket also opens new possibilities. Technology giants and startups are offering online access to quantum systems. This allows more organizations to experiment with quantum without massive upfront investment. The quantum-as-a-service model creates commercialization pathways and lowers the barrier to adoption. Therefore, investors should consider the potential of quantum cloud services alongside hardware and software.
Quantum computing is reaching an inflection point. While meaningful commercial applications are still years away, the progress quantum startups make now will pay dividends down the road. Savvy investors should identify leaders across hardware, software and cloud services to capitalize on the immense possibilities of quantum technologies.