Europe's Quantum Startups: Why Research Funding Alone Won't Cut It

Jan de Vries · 2026-11-06

According to McKinsey's 2026 Quantum Technology Monitor, investment in quantum technology startups reached €11.15 billion ($12.6 billion) in 2025, 6.3 times more than a year earlier. Only 3% came from public sources, including governments, sovereign wealth funds and universities. In 2024, their share had been roughly one-third. That can look odd next to the size of the quantum programs being announced by governments. The numbers are describing different things. Public commitments can pay for laboratories, university research, testbeds, training and infrastructure. The capital that goes onto a startup's balance sheet comes from a different mix of sources. When I look at the funding picture, I separate money that builds the ecosystem from money that finances the company. European quantum founders need both, but one does not automatically provide the other. ### Europe starts with a strong research base Europe does not lack quantum research capacity. The MIT Quantum Index estimates that the EU produces 22% of global quantum-computing publications and 17% of the top 10% most-cited papers in the field. The UK and Germany each account for 6% of those highly cited papers. The training base is expanding as well. The same report counted 69 master's degrees worldwide with "quantum" in the degree name. Germany had 12, the highest number of any country, and the UK had 10. Public programs support much of the environment around that research: universities, laboratories, shared infrastructure and training. A company can benefit from all of it without receiving the program's money as equity. A national quantum commitment may improve the conditions for building a startup while financing very little of the startup itself. ### Public money and startup money do different jobs The 2025 funding data makes the split visible. Investment in quantum technology startups rose sharply, while the share coming from public sources fell to 3% from roughly one-third a year earlier. Public support still underpins the sector, but company financing increasingly comes through other channels. Venture and private equity investors, corporates, and public markets supplied most of the capital going directly into quantum companies. For a founder, the useful question is not simply how much a government has committed to quantum. It is where the money is intended to go. A program may support university research, shared infrastructure, workforce development or direct company funding. These routes can all strengthen the same ecosystem, but they do not create the same financing options for a startup. ### Read the program before counting the capital Large national commitments are often reported as evidence of how much capital is moving into quantum. For a company building its financing plan, the headline amount is not enough. I would look first at how the program is allocated and who can receive the money. Funding directed to national laboratories or universities can strengthen the technology base without appearing on a startup's balance sheet. Investment in infrastructure or training may reduce barriers for companies across the ecosystem, but it is different from capital that a founder can use to finance the business directly. This does not make those programs less valuable. Quantum companies need the research base, specialist talent and infrastructure they help create. The distinction becomes important only when founders start treating ecosystem funding as a measure of how much company financing is available. The same logic applies when comparing countries. A large public commitment can make one market a better place to develop quantum technology without necessarily making it easier to raise the private capital required to scale a company. ### The financing plan still has to extend beyond the research base Quantum companies can spend years moving from research towards systems that are commercially viable. During that journey, they need capital that can be deployed flexibly—money that pays salaries, buys equipment, and funds go-to-market efforts. That kind of capital rarely comes from government programs focused on basic research. So, what should a founder do? Start by mapping the funding landscape. Identify which programs offer direct company funding, which provide access to infrastructure, and which support talent development. Then build a financing strategy that combines public and private sources. Don't assume that a big government announcement means easy money for your startup. Dig into the details. And remember, Europe's strength in quantum research is a huge asset. It creates a pipeline of talent and ideas. But turning those ideas into successful companies requires a different kind of support—the kind that comes from investors who understand the risks and rewards of deep tech. In the end, Europe's quantum startups need more than research funding. They need a financing ecosystem that can take them from lab to market. That's the challenge—and the opportunity—for founders and policymakers alike.