Quantum computing is an emerging industry that has the opportunity to make computing faster. These devices can perform valuable tasks but also have a high rate of error. While the industry is still being discovered and developed, quantum computing is beginning to emerge as a light of innovation in this expanding field of technology. In this blog, learn more about the quantum computing industry, some key players including PsiQuantum and Lightmatter, and the challenges and opportunities that exist within the industry.
Analyzing Quantum Computing
Quantum Computing Industry Analysis
Quantum computing is a subfield of computer science that is based on quantum theory. It is a cutting-edge technology that uses quantum mechanics to solve more difficult problems for classical computers and has been and continues to be rapidly developing.[1] Quantum computing offers the ability to solve complex problems at speeds far beyond the capabilities of classical computers, making it useful for sectors such as finance, healthcare, logistics, pharmaceuticals, and cybersecurity.
The global quantum computing market is estimated to be $1.79 billion in 2025 and is expected to reach $7.08 billion by 2030, growing at a compound annual growth rate (CAGR) of 31.64% during the forecasted period from 2025-2030.[2]
Quantum Chips
Quantum chips are the hardware that enable quantum computers to perform complex calculations by harnessing quantum bits (qubits), which can exist in multiple states simultaneously. These chips are required for increasing the computational power and efficiency of quantum systems.
As demand for faster and more powerful quantum processors grows, companies are expected to heavily invest in research and development to create more stable, scalable, and reliable quantum chips.
Key Players
While many companies are up and coming in this industry, there are a few MicroVentures portfolio companies who are established in this industry, which you can read more about below.
PsiQuantum
A key player in this industry is PsiQuantum, a quantum computing company that is focused on building the world’s first useful quantum computer. Its strategy is designed to take advantage of existing silicon chip manufacturing processes, allowing for scalability and the use of established production techniques. By focusing on a design that can support a million qubits, PsiQuantum’s technology is engineered to dramatically enhance computing power, potentially opening new possibilities in data processing and analysis across multiple industries.[3]
As of March 2025, PsiQuantum is raising a $750 million from investors at a $6 billion pre-money valuation, with BlackRock leading the round. As of May 2025, NVIDIA is in advanced talks to invest in this funding round, although no funding amount has been disclosed yet.[4] The company works with many notable partners including the Air Force Research Laboratory (AFRL), DARPA, the U.S. DOE, SLAC, the Australian Government, the Queensland Government, and Los Alamos National Laboratory (LANL).[5]
Xanadu
Xanadu is a quantum computing hardware and software company that focuses on the development of cloud-accessible photonic quantum computers and open-source software engineered for quantum machine learning and simulating quantum photonic devices. Xanadu’s cloud solutions are used by several organizations including Creative Destruction Lab, Bank of Nova Scotia, Bank of Montreal, and the U.S. Oak Ridge National Laboratory.
Xanadu last raised a $100 million Series C, led by Georgian, in November 2022 at a $1 billion valuation, just eight months after securing $100 million in its Series B round, bringing its total funding to $250 million.[6] Xanadu has notable partnerships with NVIDIA, Volkswagen, IBM, Harvard, and DARPA.[7]
Lightmatter
Another example is Lightmatter, a photonic supercomputer company specializing in light-powered computer chips that are designed to speed up artificial intelligence driven computations. Lightmatter has helped to revolutionize chip communication and computation with its photonics-enabled solutions while decreasing power consumption and boosting silicon performance for complex AI and High-Performance Computing (HPC) applications.[8]
Lightmatter most recently raised a $400 million Series D in October 2024, led by investors advised by T. Rowe Price Associates, Inc, valuing the company at $4.4 billion, and bringing its total funding to $850 million. The company announced at the time of this raise that it is looking to go public via an initial public offering (IPO) as the next source of funding.[9] Lightmatter has partnered with notable organizations including UALink, GlobalFoundries, ASE, Amkor, Harvard, and Boston University.[10]
Ayar Labs
Ayar Labs has developed an optical input/output (I/O) methodology that employs conventional and cost-effective silicon processing methods to substitute traditional electrical I/O with high-speed, high-density, and energy efficient optical I/O chiplets along with multi-wavelength light sources. The company leverages silicon photonics technology to replace the copper connections, so the shift from electrical to optical data transmission between chips is engineered to effectively overcome the constraints in terms of performance, power consumption, and data transfer distances associated with copper interconnects.[11]
Ayar Labs’ last raise was $155 million in December 2024, led by Advent Global Opportunities and Light Street Capital, bringing its total funding to $370 million, valuing the company above $1 billion.[12] The company has partnered with notable organizations including Lockheed Martin, NVIDIA, Hewlett Packard, and Intel.[13]
Challenges and Opportunities
Despite many advances, quantum computing still faces many challenges that limit its applications, scalability, and reliability.
Challenges
Decoherence
Compared to classic computers, quantum computers are extremely susceptible to noise, as the quantum state of qubits is very fragile and any perturbation, such as a slight vibration or change in temperature, can affect them uncontrollably, causing the stored information to be lost. Decoherence poses a challenge because to avoid errors, calculations must be completed before decoherence occurs.[14]
Scalability
While quantum computers have shown impressive performance for some tasks, they are still relatively small compared to classical computers. Scaling up quantum computers to hundreds or thousands of qubits while maintaining high levels of coherence and low error rates remains a major challenge.[15]
Hardware and Software Development
Developing high-quality quantum hardware, such as qubits and control electronics, remains a major challenge, as researchers work to create scalable, fault-tolerant systems. At the same time, quantum algorithms and software tools are still in their early stages, with a pressing need for new programming languages, compilers, and optimizers that can harness the full potential of quantum computing.[16]
Opportunities
Technological Leadership
Quantum technologies are expected to help transform computing, communication, and sensing. Nations are racing to lead this frontier, knowing that dominance in quantum could shape global power in the decades ahead.
Economic Growth
The emerging quantum industry is creating new markets, startups, and high-skilled jobs. As the technology matures, it’s expected to drive major economic value across sectors like finance, healthcare, and logistics.
National Security
Quantum cryptography offers security that classical systems can’t match, making it a tool for helping to protect national data. Governments see quantum as essential to staying ahead in cyber defense and intelligence.[17]
The Future of Quantum Computing
The future of quantum computers holds potential, promising to revolutionize industries ranging from artificial intelligence to drug discovery. With rapid advancements in quantum computing technology, the next decade could bring groundbreaking innovations. The heart of quantum computing lies in the quantum hardware that enables qubits to function. As quantum processors evolve, future quantum computers may be able to handle more qubits with greater stability and coherence.
The future of quantum computers is undoubtedly exciting. With advancements in quantum hardware, quantum software, quantum algorithms, and real-world applications, quantum computing could change the way we approach problems across industries.[18]
Final Thoughts
Quantum computing is expected to witness many advantages over conventional computers. As quantum technologies evolve, the quantum computing market could continue to be shaped by the breakthroughs in quantum chip development, potentially unlocking new applications in fields like cryptography, artificial intelligence, drug discovery, and material science.
Want to learn more about key industries to keep an eye on? Check out the following blogs to learn more:
- Navigating the Digital World: The Growth of Cybersecurity
- Beyond the Battlefield: Defense Technology
- The Sky’s the Limit: Drones and Autonomous Vehicles
- Printing the Future: The Landscape of 3D Printing
Are you looking to invest in startups? Sign up for a MicroVentures account to start investing!
[1] https://www.fortunebusinessinsights.com/quantum-computing-market-104855
[2] https://www.globenewswire.com/news-release/2025/01/14/3009557/28124/en/Quantum-Computing-Market-Outlook-2025-2030-with-Profiles-of-Microsoft-Quantum-Computing-D-Wave-Quantum-Quix-Quantum-Alpine-Quantum-Technologies-Nanofiber-Quantum-Technologies-IQM-F.html
[3] https://www.forbes.com/sites/moorinsights/2022/09/21/psiquantum-has-a-goal-for-its-million-qubit-photonic-quantum-computer-to-outperform-every-supercomputer-on-the-planet/?sh=4b3479d18db3
[4] https://www.reuters.com/business/nvidia-advanced-talks-invest-psiquantum-information-reports-2025-05-19/
[5] https://www.psiquantum.com/about
[6] https://www.xanadu.ai/press/xanadu-closes-100M-USD-series-c-to-accelerate-development-of-fault-tolerant-quantum-computers
[8] https://www.businesswire.com/news/home/20231219681989/en/Lightmatter-Accelerates-Growth-and-Expands-Photonic-Chip-Deployments-With-%24155M-in-New-Funding-Now-Valued-at-%241.2B
[9] https://www.reuters.com/technology/photonic-startup-lightmatter-raises-400-million-amid-ai-datacenter-boom-eyes-ipo-2024-10-16/
[11] https://ayarlabs.com/news/ayar-labs-adds-25-million-in-expansion-of-its-130-million-series-c/
[12] https://ayarlabs.com/news/ayar-labs-155m-series-d-to-address-ai-infrastructure-includes-amd-intel-capital-nvidia
[13] https://ayarlabs.com/collaborations-ecosystem/
[14] https://www.plainconcepts.com/quantum-computing-potential-challenges/
[15] https://thequantuminsider.com/2023/03/24/quantum-computing-challenges/
[16] https://thequantuminsider.com/2023/03/24/quantum-computing-challenges/
[17] https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2024/09/23/quantum-computing-opportunities-concerns-and-impact/
[18] https://www.spinquanta.com/news-detail/future-of-quantum-computers-what-lies-ahead-in20250108024350
*****
The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.
