Too many quantum startups, too little money to keep them alive

More than half of quantum computing startups will be out of business by 2030, Gartner predicts, as an overcrowded market struggles to generate enough commercial revenue. The analyst expects customers to reject technologies that fail to achieve fault-tolerant quantum computing – reliable computation despite errors in the underlying hardware. Despite that forecast, Gartner says enterprises are making initial investments as quantum technologies begin to show early signs of practical business advantage. Broad commercial usefulness remains elusive, but organizations are building expertise rather than waiting for the technology to mature. "CIOs and IT leaders should treat their quantum journey as a multi-year endeavor with the aim of gaining a competitive business advantage over their closest competitors," says Gaurav Gupta, Gartner VP analyst and chief of research for its emerging market dynamics team. Estimates put the number of quantum startups at between 200 and 300, competing in a market Gartner forecasts will generate $1.1 billion in worldwide revenue in 2027. …