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Investing In Quantum Speed: Capital Markets & Quantum Computing

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10 October 2023

Use Cases and Case Studies

Abstract

Quantum computing (QC) could quickly solve certain problems that no classical computer could solve in any feasible amount of time. The technology employs a different way of computing that has the potential to dramatically reimagine solutions for climate change, risk management, drug discovery, portfolio optimization, cybersecurity, and more. Financial institutions (FIs) have been early experimenters and implementers of this technology, and recent technology breakthroughs including more cloud-based offerings, and increasing governmental and private investment, hints at a shortening timeline for QC to go mainstream. While quantum insiders wonder as to whether we have passed the point of “quantum supremacy” the focus for those working in areas more advanced in utilizing QC (which includes finance) has now shifted to developing QC for commercial advantage. This means QC can solving valuable problems faster, cheaper and/or more efficiently than a classical solution, and most likely in a hybrid approach utilizing both classical and quantum compute.

It is an understatement to say investment is growing in this area. Data from financial data company PitchBook shows 80 percent of venture capital (VC) investment in QC was made in the last three years.The pandemic has not slowed down investment with 2022 representing a high watermark in terms of VC investment – representing one-third of all VC investment to date.