Quantum computing startups are off to a strong start in 2025, with major funding rounds signaling continued investor confidence in the sector. Last month, Boston-based QuEra Computing secured an impressive $230 million investment from SoftBank’s Vision Fund and Google Quantum AI. Shortly after, Israel-based Quantum Machines closed a $170 million Series C led by PSG Equity.
Quantum Computing’s Record-Breaking Year
Looking at recent investment trends, it is clear that these large funding rounds are just the beginning. In 2024, venture capital firms poured a record $1.9 billion into quantum startups across 62 funding rounds, according to Crunchbase. This marked a 138% increase from the $789 million raised in 2023 across 67 rounds.
One of the biggest deals of 2024 came from PsiQuantum, which secured a $594 million funding package through equity, grants, and loans from the Australian Commonwealth and Queensland Government. With this funding, the company plans to build a quantum computing facility near Brisbane Airport in Australia.
Even without that round, venture funding in 2024 nearly matched the previous record of $1.5 billion in 2022. This demonstrates sustained investor confidence and growing enthusiasm for quantum technologies.
Breakthroughs by Google, IBM, and Microsoft have fueled this quantum funding boom. Just last month, Microsoft announced a major milestone, revealing that it had created a new state of matter to develop a “topological qubit.” This advancement could significantly improve the scalability of quantum computing.
As a result, venture capitalists, always seeking the next revolutionary technology, have closely tracked these developments. Some of the largest quantum funding rounds from the past year include:
- Quantinuum (January 2024): The Colorado-based company, spun off from Honeywell and merged with Cambridge Quantum Computing, raised $300 million at a $5 billion pre-money valuation.
- SandboxAQ (December 2023): The Alphabet spin-off, which integrates AI and quantum computing, secured $300 million at a $5.6 billion valuation.
- Quantum Machines (January 2024): Raised $100 million to develop advanced quantum hardware and software.
- Riverlane (August 2024): The UK-based firm specializing in quantum error correction secured $75 million in Series C funding.
Will 2025 Continue the Quantum Computing Investment Trend?
Considering these recent developments, it is unlikely that venture investment in quantum computing will slow down this year. One major driver of this momentum is Generative AI. As the demand for high-performance computing and energy efficiency continues to rise, investors are increasingly looking toward quantum computing as a long-term solution.
Moreover, data centers have already attracted billions in investment to support AI’s computing needs, and quantum computing appears poised to be the next frontier. While quantum machines require extreme cooling at absolute zero, they can be up to 100 times more energy-efficient than traditional supercomputers for certain complex computations. Consequently, quantum computing presents a compelling alternative for solving the massive energy consumption challenges AI currently faces.
Beyond AI, quantum technology is also gaining traction across healthcare, biotech, financial services, and defense. As a result, many experts believe that quantum computing has the potential to revolutionize multiple industries. Given its promising applications, venture capitalists are expected to remain highly engaged in this space throughout 2025 and beyond.
