To change the future of humanity: the quantum computer breaks the limits of imagination

For example, we can develop medicines and medical devices and perform experiments dozens and hundreds of times faster, thereby shortening by decades the arrival of the medical balm from the moment it is worked on until it reaches the market. And this also applies to all areas of life.”

The data of the same review also showed that Israel has recently seen an opposite trend, in which the government continues to invest in the early stages of local companies in the field, but many of those who demonstrated technological maturity were able to raise most of the money from the private sector.

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For most of us, who pay for the government’s investments through our tax payments, the term “quantum computing” mainly evokes question marks and yawns, even though it is a field that may change the future of humanity, and especially the parts of it that will possess independent capabilities in the field. However, investors have already internalized that this is the “next technological revolution” after AI – even though the commercialization of the field is still in its infancy, and have begun to bet on the start-up companies whose vision will become the next technology giants.

The aggregate investment amount of the venture capital funds in the Israeli quantum computing companies was about 650 million dollars as of the end of last June, and since then it has almost doubled and joined the government’s investment in the field which was about 340 million dollars by the end of 2025. Among the recent notable investments were the recruitments of Israeli companies such as “Quantum Art”, a spin-off of the Weizmann Institute which is developing a quantum computer and announced the recruitment of About 100 million dollars about a week and a half ago, and “Qedma”, which develops a system for error correction and quantum computing accuracy, which announced at the beginning of July about raising 26 million dollars.

The reason that most of the investments in the field come from governments, according to Zeevi, stems from strategic and security considerations and the great risk that is still inherent in the field, in light of the low technological maturity. “Quantum computing requires a high level of knowledge, experience and abilities,” he points out, “which today are still mainly in academic research and among senior technologists and scientists in the private market.

“This creates a kind of barrier that does not allow entrepreneurs to establish a large number of startups as a response to a variety of problems, similar to the number of startups that adopted artificial intelligence technology. This is also the reason why in Israel, known as the ‘startup nation’, there are only about 20 to 30 companies at various stages engaged in the field, three of which are the largest defense companies in Israel, and four more are research and development centers of technology giants International companies such as Nvidia and IBM. “If you have to estimate the point where quantum computing is today, then in my estimation it is exactly where AI was in 2021-2022.”

How do you price technology?

Despite the relatively low aggregate amount of investment in the field of quantum computing compared to the hundreds of billions of dollars already invested in AI, the buzz surrounding the field already gives it status as the next “trend” in the capital market after artificial intelligence.

The expected size of the quantum computing market is already about 200-250 billion dollars by 2035 and this is before the introduction of possible uses of the technology in a variety of technological initiatives, similar to AI. This is according to a review by the international consulting firm Bain & Company.

Until then, quantum was seen mainly as a research field within technology giants such as IBM, Google and Honeywell, or as a field led by governments and academia. Once tradable stocks were created, the market could for the first time price technological progress, delays and the long-term economic potential in real time.

“It can be seen that since the beginning of 2024, quantum shares have been characterized by high volatility and even recorded sharp rallies around technological roadmaps and government contracts for the field, alongside declines against the background of a cash burn rate and long schedules for commercialization. The volatility itself increased the market’s attention and turned quantum from an academic phenomenon into a trading and investment phenomenon.

“The large quantum companies, with a value of over a billion dollars that focus mainly on quantum, are mainly in the US, with some of them traded on the American stock exchanges, but some of the most advanced and largest are still private, including Quantinuum and PsiQuantum, which report a value of billions of dollars.”

Yablonsky estimates that government money will continue to lead investments in the field in the coming years, since “quantum computing is directly related to national security, encryption and strategic advantage between countries.” What is likely to happen in her opinion is “a rebalancing between government and private money, since the more commercialization routes become clearer, the more private capital will increase its presence.

“It must be remembered that quantum computing is no longer just a theoretical scientific field, but a story of capital allocation and competition between countries along with the pricing of expectations. Investors are not buying immediate results, but long-term strategic optionality, similar to early investments in disruptive technologies in the past.

“The level of interest and expectations are certainly reminiscent of the AI ​​days of 2021-2022, and Quantum can certainly become a major investment topic, but in my estimation the dynamics are expected to be more similar to the field of biotechnology than to software, since the field is characterized by long timetables until development, one-off breakthroughs, and more.”

Leaders in the field

“Our investment in Kedma was due to Kedma being a software company, since at Galil Capital+ we invest in software. Kedma’s technology will be relevant and applicable in any form of quantum computing hardware that will be developed, and together with us IBM invested in Kedma, among others.

“Our decision to invest in Kedma was not only due to the fact that it is Israeli, even though the Israeli ecosystem is where we operate, but from the feedback we received from the market, according to which Kedma is a leader in its field in the world. There are other companies around the world working to correct errors in quantum computing, but the feedback about it was as a market leader and that was one of the decisions to walk with it in the field. If we did not think it was a leader – we would not have made the investment, even though it is in Israel.”

According to Litbek, Israel’s “X factor” lies in the local human capital, which Litbek defines as “a very significant talent in the world of quantum computing. Prof. Dorit Aharonov, for example, is a senior lecturer at the Hebrew University and the chief scientist in Kadama, and Prof. Nathaniel Lindner is a senior lecturer at the Technion and serves as the company’s VP of Technologies.

“Israel has a wide range of high-quality human capital, so in my opinion there is room for more Israeli companies to establish themselves in this field in the relatively near future. It is true that this is still a relatively small field in terms of the number of companies operating in it, so to the question of whether I would establish a fund that would invest only in quantum computing, the answer is no. Besides, in my opinion, we are just before the rise of a wave of new companies in the field that will be established in Israel.”