Quantum Tech

Quantum Technology and It’s Disruptive Potential

The capital market often associates the term “deep tech” with disruptive technologies that can revolutionize existing markets and industries and promise their investors high returns. Quantum technology also belongs to this category and is now increasingly attracting broader investor interest. The most recent example of this is IonQ’s IPO on the NYSE.

Quantum technology has the great potential to contribute promising solutions to the critical issues of modern times, if not to solve them once and for all. To name just two examples, quantum technology can shorten the development and testing phase for new drugs many times over. Drugs can be developed faster and at lower cost, which will speed up the fight against future (post Corona) pandemics.

Similarly, technology can help accelerate the development of climate-resistant crops and more effective fertilizers. After all, the world’s population is growing hungrier every year, whereas the amount of land available for growing food is limited.

The spectrum of quantum technology is very broad. On the one hand, it contributes to the further development of existing technologies. For example, it should enable the number of transistors installed on the surface of semiconductor chips to increase significantly faster than previously possible, thus increasing the performance of computers and machines. On the other hand, quantum technology can contribute to the development of completely new technologies. For example, the way we communicate is likely to change significantly in the future, and intercontinental data exchange is likely to be much more trouble-free than has been the case to date. The development of a fully mature quantum computer is seen among scientists as the “holy grail” of quantum technology. However, it is likely to be several years before this disruptive computer technology is ready for the market. Even though the market for quantum technology is still quite small (< $1 billion), experts expect high double-digit growth rates in the coming years and a market size of >$10 billion by 2030.

In addition to the U.S. and China, Europe is also positioning itself early in this interesting growth market through large-scale financial support programs. In addition, a strong startup community with outstanding experts in the field of quantum technology has already formed in Europe. CM-Equity has recognized the potential of this innovative development field of quantum technology at an early stage and will therefore soon launch a special investment fund, through which the most promising startups in the industry will receive financial support from interested investors.

Article by Markus Polz

Head of Asset Management at CM-Equity AG

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