Identifying investment opportunities in Quantum Computing
Quantum Exponential intends to identify different investment opportunities in the quantum computing sector focussing on NATO allied countries. These include, but are not limited to, quantum communications, quantum sensing, quantum metrology and quantum computing software and components. Initially, Quantum Exponential will not pursue investments in companies that make classical cyber security software which claims to be quantum resistant and companies that use quantum technologies in their product description without a scientific justification. Quantum Exponential have identified over 175 start-ups that potentially meet our investment strategy with a focus on seed funding for start-ups with second stage funding plans in preparation.
Quantum Exponential will source investment opportunities directly and in conjunction with Notion Capital, one of Europe’s leading tech VC investors who will refer early-stage quantum technology investment opportunities. Notion Capital uses a proprietary digital sourcing technology that applies heuristics to signals from multiple public data sources and will augment these with the company’s internal data sets to identify those companies most suited to Quantum Exponential’s investment strategy.
For each investee company, Quantum Exponential intends to deploy initial capital, co-lead on that company’s next funding round and provide expertise to its business operations and strategic plans. Quantum Exponential will seek to achieve its investment objectives and strategy by taking an active approach in their investments.
Quantum Exponential has an option to acquire shares in Arqit Quantum Inc., whose shares are trading on NASDAQ under the ticker ‘ARQQ’. Arqit supplies a unique quantum encryption Platform-as-a-Service which makes the communications links of any networked device secure against current and future forms of attack – even from a quantum computer.
Quantum mechanics can be used to create and distribute un-hackable encryption keys. This is achieved by sending random numbers in quantum form, that even a Quantum Computer cannot break. It is thought that eventually there will be a quantum internet where information is teleported globally using quantum mechanics, achieving exceptional speed and power. Quantum teleportation was first proved in 2016 in China by Micius, the first generation of Quantum Encryption Satellite technology. In 2019, BT launched a terrestrial quantum key distribution service between Cambridge and Ipswich.
Quantum sensing involves high-precision measurements of electric, magnetic and gravitation fields that can be applied to medical imaging, underground mapping, and characterisation of materials to name a few. Atoms are entangled and observed through refraction patterns and quantum effects allowing scientists to visualise below the surface of the Earth. The Australian government has developed a mineral exploration system utilising superconducting quantum interference sensors.
Quantum mechanics can be used to create new standards for time and force based on quantum phenomena. Applications of quantum metrology include miniature atomic clocks and accelerometers for signal-free navigation. The National Physical Laboratories, which is part of the UK’s National Measurement Institute, is in the process of building an advanced quantum metrology laboratory to expand its research into quantum technologies. This aims to bridge the gap between quantum science and industry such that a profitable and sustainable quantum industry can grow.
Quantum Computing Software and Components
The major players, including IBM, Google, Intel and D-Wave, have made significant advancements in the field of quantum computing but there are many more hurdles before the technology can become a practical alternative for businesses and software developers will need to learn new ways of writing programs for quantum computers.
Quantum computers consist of 3 parts: a memory, which holds the current machine state; a processor, which performs elementary operations on the machine state; and the input/output which allows the computer to set the initial state and extract the final state of the computation.