Jan Goetz, CEO of Finnish-German startup IQM Quantum Computers, has set his sights high. He wants his company to be Europe’s answer to tech giants like Google, IBM, Fujitsu, and Huawei in the rapidly evolving world of quantum computing.
Seven years in, IQM is executing a two-track strategy to turn that vision into reality. On one side, the startup builds superconducting quantum computers from the ground up — manufacturing their own quantum chips. On the other, they offer cloud-based quantum computing services, letting customers buy compute time.
“Our mission is to deliver the fastest, most reliable, and most stable quantum processors in the market,” Goetz shares in a conversation with Sifted.
Globally, tech companies and governments are racing toward dominance in this field. With the promise to solve problems that traditional computers simply can’t handle, quantum computing has become a strategic priority. Countries like France, Germany, and the UK have already launched billion-euro national quantum programs.
Meanwhile, Big Tech is pushing the boundaries. Google recently unveiled its 105-qubit ‘Willow’ chip, and Microsoft announced a new quantum breakthrough. But IQM faces more than just corporate giants. It’s also battling European startups like France’s Pasqal and the UK’s Oxford Quantum Circuits — both developing full-stack quantum systems.
For now, quantum computers still struggle with limited power due to small processors and high error rates. To tackle these hurdles, companies are focused on scaling the number of qubits — the quantum version of classical computing bits — and minimizing errors.
IQM stands out by shipping fully built quantum computers directly to clients. Its flagship model, Radiance, is a 54-qubit machine designed for supercomputing centers. Priced up to €30 million, it’s already finding a market. A more powerful 150-qubit version is set to launch this year for internal testing, with the first delivery targeted by 2026 to Germany’s Leibniz Superconducting Centre.
By comparison, French rival Pasqal uses neutral atoms instead of superconducting qubits. Pasqal recently sold a 200-qubit quantum computer to Saudi oil giant Aramco, set for deployment in 2025.
For universities and research labs, IQM offers Spark — a compact five-qubit system designed for hands-on learning and research. With a price tag of up to €1 million, Spark has already been adopted by institutions like the Taiwan Semiconductor Research Institute (TSRI).
Beyond hardware sales, IQM knows that partnerships are key. Every customer gains access to CUDA Quantum, Nvidia’s open-source tool for hybrid quantum-classical computing. This ensures their machines don’t gather dust as glorified showpieces.
“As much as we’re focused on selling hardware, what really matters is ensuring that our machines are used — not just ending up as museum pieces,” Goetz explains.
Given that real-world use cases for quantum computers are still in development, making money remains a challenge for hardware startups. IQM has built a diversified model to tackle this.
In addition to selling machines, IQM runs two quantum data centers in Finland and Germany. These facilities offer cloud-based computing on a pay-as-you-go model, helping companies test and refine quantum applications without massive upfront costs.
Maintenance is another income stream. IQM charges clients between 10-20% of the hardware cost for ongoing service, paid either as a lump sum or through monthly subscriptions. For sensitive sectors where security is critical, IQM even provides training so clients can manage maintenance independently.
Since its founding in 2018 by Goetz and co-founders Mikko Möttönen, Kuan Yen Tan, and Juha Vartiainen, IQM has sold 13 quantum computers across Europe and Asia. It’s now setting its sights on the US market, where Goetz hints they might one day open production lines.
In Espoo, Finland, IQM runs its own private quantum chip factory, capable of producing up to 20 computers per year. While Goetz says they might eventually supply chips to other companies, that’s not in the immediate plans. “The market isn’t mature enough yet for specialized chip manufacturers,” he notes.
This momentum has attracted solid investor backing — to the tune of $210 million. Funding sources range from venture capital and European Investment Bank loans to public funds from Finland’s Tesi and Germany’s Federal Ministry of Education and Research.
Scaling Challenges and the Quantum Talent Crunch
Still, keeping pace with Big Tech won’t be easy. Funding remains a major obstacle, especially as European startups often struggle with Series B and later-stage capital. US-based competitors like PsiQuantum — which builds photon-based quantum computers — have already raised a staggering $1.6 billion.
Goetz acknowledges this challenge. “We have a clear path to profitability, but scaling means constant fundraising. The real question is whether enough capital is available to get us there.”
Talent is another hurdle. As Europe’s quantum ecosystem is still in its infancy, qualified experts are scarce — and demand is only expected to grow once the industry hits its “AI moment,” Goetz warns. IQM currently employs 300 staff across Finland and Germany.
To ease the talent crunch, IQM partners with universities like Finland’s VTT Technical Research Centre, co-operating a five-qubit system for research. Some employees are even completing PhDs while working at IQM. The company also runs an online academy to train tech workers from industries like semiconductors and AI in quantum fundamentals.
Goetz remains confident that agility will be IQM’s edge over tech giants. “We’re doubling our qubit count, moving from 54 to 150 qubits in record time. We started five years after Google — and we’re already catching up. That’s the power of being young and nimble.”
