Quantum Computing BLUprint

MARCH 2025

Akhilesh Agarwal
Acknowledgement

Quantum computing technology has garnered attention globally since it has proven to offer exponential advantage
over classical computers across several applications. Recently, the US government passed a bill to mandate all
agencies to shift to quantum cryptography ensuring unbreakable security. The Indian government has also set up a
National Quantum Mission to drive research and development in quantum computing.

India's nascent quantum ecosystem presents a rare opportunity to strategically align research, infrastructure, and
capital, enabling the country to build a self-reliant quantum stack. With global advancements still in flux, India can
leverage its strong talent pool, government initiatives, and emerging deep-tech investments to carve a competitive
position in quantum computing.

We want to acknowledge the invaluable contribution of Atharv Apshinge on this thesis in distilling the technical
intricacies into actionable insights. We’ve tried to cover all important aspects like competitive landscape, investment
opportunities and risks, technological and scientific developments, applications, use-cases, and government
policies to help founders, investors and other stakeholders in the ecosystem.

If you are a founder, researcher or stakeholder in quantum technology and would be interested to chat more about
our work or discuss yours, feel free to reach out at akhilesh@blume.vc
Methodology

261 funded startups 6 categories 28 subcategories

A clear understanding of how quantum computing differentiates itself from the classical tech is important for any stakeholder
involved. We studied the underlying fundamental principles, inherent properties and the resulting advantages and limitations.
Quantum systems will not be replacing the computers on our desks and used for everyday tasks like listening to music,
watching videos, making presentations or sending emails. Quantum computers offer exponential speed-up in particular type of
applications and use cases. We have identified those by reading through tens of scientific papers, news publications and
articles by relevant people in the industry as well as through conversations with relevant experts in the field.

We analysed all publicly available funded startups in the quantum computing sector, carefully categorizing them into clear
categories and subcategories along the value chain. We’ve compared the key metrics in quantum systems, when considered,
along with the observed applications, a better set of quantum system can be built that would go hand in hand with market
needs while also offering technological dominance.

We collected and analyzed funding data, market size projections, and performance metrics of quantum systems. Through
research, we’ve tried to figure out a timeline of when the tech will be relevant enough to reach a point where large scale
businesses can be built.
 Quantum mechanics unlocks a new computing paradigm
Qubits, a quantum analog of the classical bits, are reshaping how we process information and solving complex problems, offering exponentially more
opportunities than classical bits

Classical Bits use one path, corner to Qubits can explore multiple
corner to solve a maze, following a slow paths to solve a maze, reaching
approach towards final point the desired point much faster

Entanglement allows paths to be analyzed in Interference helps remove incorrect paths Superposition allows a qubit to exist in
coordination, ensuring that once a dead-end is dynamically, allowing the system to prioritize multiple states at once, meaning a quantum
found, all related paths adjust simultaneously, the most efficient route while filtering out bad computer can explore many paths at the
reducing calculations choices same time rather than sequentially

Source: Blume Research

 Beyond Moore’s law – leveraging quantum computing to surpass
the limits of classical computers
Increasing transistor density will soon reach a cold phase soon as transistors have reached atomic scale and physical manufacturing limits. Qubits
offer a better approach to build systems with extremely high computational power

The rate of increase in processing power has plateaued

even though the transistor count is currently at par with
Moore’s law, because we are struggling to progress with
other factors – single thread performance, chip clock rates,
power per chip and their number of logical cores

Qubits offer exponential scale up, unlike the linearity observed in classical bits

1 51
50

qubit
2 times higher number of encoded states qubit

Source: Atom Computing, Olivier Ezratty

 From theory to trillion dollar tech – quantum's journey to 2040
By 2035, global quantum computing market will generate a potential economic value of $2 trillion across four industries: chemical, life sciences,
finance and mobility¹

Market Size

$72bn Optimistic Estimate $131bn

2035 2040

$28bn Conservative Estimate $45bn

The revenue from hardware sales, QCaaS and professional services is estimated at a cumulative $50bn through to 2035

Source: McKinsey, Quantum Insider. Note: ¹ Economic value is defined as the additional revenue and saved costs that the application of QC can unlock in all industries.
 Deriving the quantum computing value chain
Application layer software remains the most favourite part of the technology value chain for startups, followed by equipments and components
required in building quantum systems

36% 27% 50%

Providers of hardware components Offering QC capabilities via their own Development of algorithms that run
and equipments for quantum cloud solution or dedicated cloud player on quantum computers/ equipment
computers and distribution of QC software to users and interact with the systems layer

Equipments/ Cloud System Application

Hardware Services
components Services Software Software

Development of software that interacts Consulting and education services

Manufacturers of processors and full
with the quantum processing unit (e.g. about strategic and technological
stack quantum computers
low-level programming) aspects of quantum technologies

20% 18% 18%

Source: Tracxn, Blume analysis. Note: Numbers represent the percentage of total quantum computing startups offering solutions in the segments. It is common for startups to service multiple value
chain segments.
 Startup landscape across the value chain segments

Consulting,
Equipments/ Cloud System Application
Hardware Educational
components Services Software Software
Services

Source: Blume Analysis

 Equipments and components – building a quantum computer
A developing global supply chain is visible, but more than 75% providers of quantum computing equipments and components are populated in the
American and European continents

Qubit Control Cryogenic and

and Generation Cooling

Measurement Interconnects and

and Readout Networking

A map of funded startups providing equipments and components required for Quantum Computing

Source: Blume Analysis

 Qubits as the building blocks of a revolutionary industry
Choosing the right qubit type is crucial as it impacts the R&D investments, development timelines, scalability and end-use applications

Superconducting Qubits: The most common type, made of Photonic Qubits: Based on the quantum properties of light, such as
superconducting materials cooled to cryogenic temperatures and polarization and phase. They are manipulated using optical
based on the Josephson junction, which is a device that allows the components such as beam splitters, phase shifters, and detectors.
flow of supercurrent without resistance.

Neutral Atom Qubits: Formed by trapping individual neutral atoms Trapped Ion Qubits: Utilizes electronic and nuclear spin states of
using optical tweezers and manipulating their quantum states with ions as they are trapped and manipulated using electromagnetic
lasers. These qubits leverage the atom's electronic energy levels to fields.
encode information.

Source: Blume Research

 Comparison metrics – quantifying qubit performance
A single universal metric is challenging due to diverse architecture, multi-faceted performance and application specific needs. Let’s take a dive into
several comprehensive metrics used to evaluate and compare quantum computing platforms.

Factor What does it mean? Favourable Value

Coherence Duration a qubit retains quantum information before disrupting its state. Increased time enables
Long
time solving complex problems and reduce error correction overhead

Quantum gates are operations that manipulate qubits similar to classical logic gates (AND, OR); This
Gate Fidelity High
measures accuracy of gate executions while running algorithms

Ability to increase qubit counts while maintaining control, coherence and error rates at optimal levels.
Scalability High
Millions of qubits are required to build reliable systems with the potential of industry-wide adoption

Likelihood of a quantum operation deviating from expected result. Errors occur due to environmental
Error rates Low
noise or hardware imprecision and control inaccuracies.

Fabrication Complexity must be low to ensure ease and low cost of manufacturing

Operating Conditions of hardware preferably room temperature and pressure, eliminating the need of huge cryogenic and pressure
control systems

Source: Blume Research

 Performance benchmarking: Which qubit technology is better?
Each qubit type has its strengths and weaknesses, companies are developing their qubit technology depending on the type of problem to be solved
and their business goals

Factor Superconducting Trapped Ion Neutral atom Photonic Quantum Dot Topological

Coherence time

Gate Fidelity

Scalability

Error rates

Fabrication
complexity

Operating
Cryogenic Ultra high vacuum Laser cooling Room temperature Cryogenic Cryogenic
conditions

Fault-tolerant
Key application General purpose Simulations Scalable QC Communication General purpose
systems

Source: Blume Analysis. Note: This is a rapidly evolving landscape and we expect quick and consistent disruption in this benchmarking.
 Photonic qubits to innovate with lower R&D costs and near-term
industry adoption (1/2)
Photonic qubits are favourable tech for a startup as they can be manufactures by integrating into the existing semiconductor manufacturing fabs,
eliminating need for high capital investments. There are 16 known and funded startups building photonic QPUs or full stack systems

1 2 3 4

Fundamental Information Unit Routing and manipulating qubits Qubit detection and System integration
read-out systems and scaling

- Innovation in photon sources needed for CMOS compatible chip fabrication using PICs for qubits
producing identical photons (same wavelength,
- SiN and Glass recently found to offer improved
amplitude, etc) on demand, rather than
performance
probabilistically
- Lithography and Etching to make on-chip
- Currently pursued tech includes Laser pumped
waveguides for directing photons through circuit
nonlinear crystal, excited Semiconductor
nanostructures, Defects in diamonds as a - 35% of component providers offer products for
coherent photon source compatible with integration of active components like phase shifters,
semiconductor fab beam splitters, to manipulate photonic qubits

Source: Blume Research

 Photonic qubits to innovate with lower R&D costs and near-term
industry adoption (2/2)
Optical and photonic systems are more scalable than others, along with room temperature operations enabling commercial applications in secure
networking and communication; and being increasingly adopted by top firms and government agencies

1 2 3 4
Fundamental Routing and Qubit detection and read-out systems System Integration and Scaling
Information Unit manipulating
qubits

- Superconducting Nanowire Single Photon Detectors are

- Photonic systems offer modular assembly by
fabricated using materials like NbN onto chips
combining multiple chips and interconnecting optical
- Resolving photon numbers is crucial (using PNRDs), but fibers or on-chip waveguides for easier scalability
existing tech lacks in finding balance between accuracy
- Existing Telecom and Fiber Optic Infrastructure can
and resolution
be leveraged for distributed quantum computing
- Innovations in custom circuitry using cryogenic
- Efficient and long term quantum memory in photonic
compatible components to interface detectors with
systems is necessary for complex applications, which is
photonic elements like lasers and modulators is
still under development
necessary for efficient readout systems.

Source: Blume Research

 Near-term adoption will be through software applications
Quantum computing software adoption has started – from integrating computing power in classical systems to application based solutions, the broad
range of use cases will offer returns on lower investment size than in hardware

System Software Application Software

Compilers and Algorithms and Application and

Hardware Control Runtime environment Cloud Services Middleware industry use cases

Source: Blume Analysis

 Algorithms and software solutions are being widely used for
material discovery, data security, and optimization
Quantum computing software will be adopted at scale in the next 10 years – application based solutions will offer returns on lower investment size
than in hardware

~45% of quantum application based ~40% of quantum application based ~25% of quantum application based
software startups provide simulation software startups provide optimization software startups provide data and network
services for material discovery, engineering solutions for finance, supply chain, telecom security solutions being widely adopted in
and design and media industries defense, finance and telecom

- Classical computers approximations for - Optimization problems involve finding - Classical methods use complex
quantum mechanics simulations. solution among millions of possibilities, mathematical problems that future
requiring classical brute-force computers may be able to solve
- Quantum algorithms can predict exact
electron behaviours for simulating - Quantum algorithms explore solutions - Inherent properties like randomness and
molecular behaviours simultaneously, faster optimization. entanglement for hack proof systems

Source: Blume Analysis

 The convergence of quantum key distribution and post-quantum
cryptography is reshaping global cybersecurity
The Global Risk Institute estimates a 17-34% chance of a cryptographically relevant quantum computer existing by 2034, capable of breaking RSA
2048 in 24 hours – as classical encryption methods face existential threats, these twin technologies offer a coordinated defense strategy

Users share pairs of entangled photons – measurement of these photons by both parties conveys the information
No information is actually transmitted down the fiber!

Optical fiber

Sender Receiver

PQC offers algorithmic resistance to attacks even from QKD generates encryption keys for secure information
quantum computers, while being deployable on classical exchange, shared through photons and encoded in random
hardware. It relies on mathematical problems that can’t be bases - information where bases match is kept, discarding
solved by quantum computers – like lattice based rest. If someone intercepts, errors are introduced, detectable
cryptography by the sender and receiver

This creates an unhackable communication network

Source: Blume Research

 Quantum networks and security – building the ecosystem
Organisations are moving from the discovery phase to deploying PQC at scale in 2025 – The U.S. government will be spending approximately $7.1bn
between 2025 and 2035 for transitioning sensitive information within the government agencies to post-quantum encryption

Satellite Networks: Global coverage through space

Terrestrial QKD faces inherent distance limitations due to ~0.2 dB/km photon loss in fiber. China’s Micius satellite demonstrated intercontinental QKD
in 2020, achieving 1,200 km ground-to-satellite links. Their 2025 expansion plans include 12 MEO satellites for transcontinental links, 72 LEO
satellites for regional coverage, and ground stations through 40+ facilities.

The Pentagon’s 2025 roadmap allocates $2.1bn for 12 quantum satellites for global key distribution and QKD terminals with 8-hour battery life.

Photonic Integration: From Lab to Chip

Toshiba’s PICs miniaturized QKD components onto 3x5 mm silicon chips. Field tests showed a 400x size reduction from previous setups. Mass
production via 300 mm wafer CMOS processes could lower unit costs, enabling QKD integration into 5G base stations and IoT hubs.

Metric 2024 state 2030 projection

QKD distance 1,200km Global mesh networks

PQC Performance 5x RSA overhead 1.2x RSA overhead

Source: Blume Research

 Google Willow completes a task in 5 minutes, would take 10²⁵ years
to perform it using the most powerful classical supercomputer!
Industry leaders like Google, IBM, Microsoft, AWS are exploring technologies and pursuing full-stack quantum computing with an aim to achieve
quantum supremacy and invest heavily for in-house research and development – this approach may not be the best one for startups

Tailoring a Quantum Strategy for Startups

To survive and scale beyond the

Instead of standalone quantum Startups should prioritize niche
Being a highly capital demanding deep tech valley of death, define
supremacy, startups should aim applications in drug discovery,
sector, specifically the hardware clear technical and business
for scalable technologies that can materials science, finance and
segments, startups should form milestones, such as error rate
integrate quantum computing with logistics for clear pathways to
alliances with universities, reduction, circuit depth
classical high-performance market viability. Innovation in error
government programs, and R&D optimization or early commercial
computing (HPC), ensuring mitigation and system software is
hubs for access to top-notch use cases. Transparent progress
incremental and adoption in real crucial for building large scale
fabrication and testing facilities. tracking will also build investor
world applications. fault-tolerant systems.
confidence.

Source: Google Blog, Blume Analysis

Spotlight
Global startups making their mark in the
quantum world
 Developer of an AI-powered full-stack quantum computing solution based on superconducting qubits

Funding and Financials Technology and Innovation

Founded: 2013 First quantum integrated circuit

Location: Berkeley, United States foundry—enables in-house chip fabrication
Funding: $198m resulting in faster R&D cycles. Barrier to entry for
competitors, providing a strategic moat.
Stage: Public
Investors: Bessemer Venture Partners, DCVC, 3D signal delivery enables high density, modular
Northgate Capital, Seabed VC, a16z, Vy Capital, processor I/O
Y Combinator, Morado Ventures, Susa Ventures

Product Market Challenges and Opportunity

On premise quantum computing sold to Multi-chip modularity by leveraging existing

governments, labs and enterprises with cloud semiconductor manufacturing infrastructure.
services offered via AWS, Azure, Strangeworks. Well-positioned to monetize quantum computing
Quantum Processing Units available for direct via cloud services and QPU sales while benefiting
purchase (Novera QPU). from early adoption by government.
Consulting and partnerships with NASA, Revenue needs to be enterprise dominant for
HSBC, Moody’s Analytics sustainable growth. Rigetti’s 9 Qubit QPU

Source: Rigetti Computing Website and Investor Deck, Tracxn

 Providing computing elements in the stack like CPU, FPGAs and qubits with focus on quantum error correction

Funding and Financials Technology and Innovation Competitor examples

Founded: 2017 Dedicated Quantum Decoder Chip addressing

Location: Cambridge, United Kingdom the challenge of scaling quantum operations from
Funding: $122m a few hundred to millions without failure
Stage: Series C QEC stack – proprietary QEC chips, hardware,
Investors: Planet First Partners, ETF Partners, and software technologies working in unison to
Cambridge Innovation Capital, Molten Ventures, correct billions of errors per second, essential to
Amadeus Capital, European Commission achieve FTQC

Product Market Challenges and Opportunity Product

All hardware manufacturers have long term goals Universal error correction that works across
to scale scale quantum processors to 1000+ multiple quantum technologies is a rare and
qubits with reduced errors. valuable gem. If it becomes an
industry-standard error correction stack,
This hardware market will drive reliable solutions quantum hardware manufacturers will create a
for complex and high value use cases across Deltaflow 2 performs real-time
perpetual revenue stream
industries error correction on up to 250
physical qubits

Source: Riverlane website, Tracxn

 QNu labs is a pioneer in quantum cryptography, quantum encryption and quantum communication products and solutions

Funding and Financials Technology and Innovation Competitor examples

Founded: 2016 Developing hardware - QKD, QRNG and Security

Location: Bengaluru, India Modules along with platform and service layer
Funding: $15.2m software.
Enabling end-to-end infrastructure and
Stage: Seed
information security from classical and quantum
Investors: Speciale Invest, Tenacity Ventures, computers by providing NIST compliant PQC
Uthishtaa Solutions, Karnataka Trustee, Waao solutions.
Partners, Venture Catalysts + Angel investors

Product Market Challenges and Opportunity

Scales quantum-safe security for integration into India’s National Quantum Mission prioritizes
existing infrastructures, superior data protection network and communications security, which will
for banking, healthcare, data centres, etc unlock more contracts from the defense sector.
Bagged a contract with the Indian Navy for Immediate applications includes entering $170bn
procurement and deployment of large scale market of anti-counterfeit packaging and
quantum encryption systems. developing secure voting machines.

Source: QNu Labs website, Tracxn, The Economic Times

 Pioneering company that vertically integrates Quantum Computing and AI to develop advanced solutions across various industries

Funding and Financials Technology and Innovation Products

Founded: 2019 Scalable spin-qubit-based Quantum Processing

Location: Bengaluru, India Units and cryogenic control chips.
Funding: $11.3m AI-enabled system for controlling various types of
qubits. This platform offers ultra-low latency
Stage: Seed
feedback (<100ns) and capabilities for quantum
Investors: YourNest, SIDBI Venture Capital, We error correction and mitigation
Founder Circle + Angel investors

QpiAI’s flagship 25 qubit

quantum computer
Product Market Challenges and Opportunity

Diverse industry specific applications – predictive The integration of quantum computing and AI is
analytics for operational efficiency in still in its nascent stages. Convincing industries to
manufacturing, risk assessment and portfolio adopt quantum-AI solutions involves overcoming
skepticism and demonstrating clear value
optimization, AI driven drug discovery and
propositions.
simulation tools
Scalable and modular
control electronics

Source: Qpi AI website, Tracxn

 Essential ingredients for a thriving quantum startup: Market
maturity, viable business model and commercial-ready tech
What about startups that disappeared? You would guess that there are many given the technological immaturity of the sector. Well, less than 10% of
all the companies in the sector have shut down

SeQureNet (2008 – 2017, France) Zapata AI (2017 – 2024, USA)

It was a spin-off of Telecom ParisTech specialized in the Developed quantum-classical hybrid computing platform, to
distribution of long distance CV-QKDs. Funded within the solve real-world problems in finance, logistics, chemistry and
framework of the European research project SECOQC more
(secure communication based on quantum cryptography)
Over time, as quantum computing adoption was slower than
It had been launched a little too early compared to the QKD expected, it died after a failed pivot towards AI and
market maturity enterprise machine learning solutions, and a SPAC

Black Brane Systems (2017 – 2024, Canada) NextGenQ (2019-2021, France)

Building in this field without quantum physics expertise or
Focused on quantum machine learning, received undisclosed funding is highly challenging, breakthrough innovation or
funding and remained highly strategic support is important
Struggled to find customers willing to pay, lack of Atomtronics (2015, Italy)
transparency and stealthy operations may have deterred Focused on atomtronic circuits (ultra-cold atoms in artificial
investors and partnerships, unclear business model lattices), highly experimental and difficult to commercialize

Source: Olivier Ezratty

Investment Insights
 Global Investments – stages and timeline
Quantum computing attracted $2 billion funding in 2024, underscoring continued investor confidence in its future. But clear results and success of exit
strategies will be visible at around 8 years from now

The industry is in its early stages, there

are <10 unicorns in the sector. We are
yet to observe any trends in revenue
multiples and valuations as more than
60% quantum computing investments
have been done 2021 onwards

Median time between rounds (in years)

Founded – Seed 2.08

Seed – Series A 2.41

Series A – Series B 2.16

Series B – Series C 1.33

Source: Tracxn, Blume analysis

 Global Investments: What tech has gained the most confidence?
Superconducting remains the most advanced and matured technology with highest investments done till date. Extensive R&D by companies early on
will prevent new startups from entering due to high capital requirements, patents and IP barriers and breakthrough research being the entry point

Superconducting Trapped Ion Photonic Topological Dot Atom

Others Others
Others QuEra

IQM Origin Quantum QCI OQC A&B Others Others Quandela Quobly
PlanQC
TuringQ
Diraq
Amazon $300m

Computing
Equal1
Xanadu $235m

Atom
Quantum
Motion
Rigetti $656m
Quantinuum
$800m

Pasqal $140m
SQC
Google ~$700m
$133m

Microsoft
D-Wave $724m Psi Quantum ~$820m
$1345m

(Incl. Australian

Infleqtion $183m
government’s 2024
deal) Intel
IonQ $736m $300m
IBM ~$2300m

Source: Olivier Ezratty

 Governments have invested $58bn through 29 national initiatives to
drive quantum innovation
Netherlands $904m
Sweden $160m
Finland $84m
EU Denmark $34m
Canada $7.2bn Ireland $13.5m
Russia
$1.6bn
UK $790m
Germany
$5.9bn $6.4bn South Korea
France $52m Japan
USA
$3.7bn $2.3bn Israel $1.8bn
Austria $127m
Switzerland $120m $435m China
$25bn Taiwan
Spain $67m
Hungary $11m Qatar $282m
India
$10m
$800m
Malaysia
Brazil $6m
Singapore
$11m
$208m
Australia
$865m

South Africa
$3.2m
New Zealand
$36.7m

Source: Global Quantum Initiative

 India’s quantum tech is leading in software, only two startups
building full stack quantum computing hardware
While 67% of Indian startups are primarily working on application based software solutions, only a few startups are focused on R&D and
Hardware in Quantum Computing due to high capital, infrastructure investment and lack of specialized talent among other reasons

33
Absence of multiple full stack
Quantum Computer providers
has limited diversification of
startups in this category

20

Limited growth as only one

local hardware partner for
India needs public-private testing – system software 12
partnerships to build needs direct interaction with
quantum-capable fabs real quantum processors

2 2

Equipments / Components Hardware System Software Application Software Other Services

Source: Tracxn, Blume Analysis. Note: Chart depicts number of startups offering products and services in each category of quantum computing technology, involves startups with
multiple category focus. Only full stack quantum computing or processor chip providers are considered under the Hardware category, startups providing partial systems or
equipments & components are separated into Equipments / Components.
 India’s private funding scenario is in it’s nascent phase
India has 45 known quantum computing startups. Around 30% of which are funded with only one series A round in the sector and all others are
either at seed stage or have received grants

Full Stack AI-enabled Superconducting

Quantum Computing Solutions

Quantum Engineering
Simulation Software

Quantum Cryptography 3.55m

Hardware and Software Series A
$11.3m
$15.2m Seed
Seed

Quantum Cryptography
$53K
Seed
Hardware and Software
QRNGs and Optical
Components $350K
$100K Seed $2m
Seed $251K
Seed
Seed

Full Stack Photonic Quantum

No-Code Quantum Algorithm Quantum Cryptography Computing
Development Platform Hardware and Software

Source: Tracxn
 India’s National Quantum Mission
Mission objectives include developing quantum computers with 50-1000 physical qubits in 8 years, satellite-based secure quantum communications
between ground stations within India, long-distance secure quantum communications with other countries, and inter-city quantum key distribution

Budget allocation under NQM

The National Quantum Mission with a budget of nearly $730 million
for the period 2023 - 2031 has the following key objectives 3%
1.3%
International
Mission
Collaborations
Management
Unit
● Multi-nodal quantum communication infrastructure - Fiber and
8.8%
satellite based QKD HR Development

● Establish 4 Thematic Hubs – dedicated centers focusing on areas

such as quantum computing, communication, sensing and
9%
materials Startup
Ecosystem
● Funding joint research and development projects between Indian
startups/companies and research labs (IITs, IISc, TIFR)

● Homegrown quantum hardware with superconducting or photonic

technology

● Supporting PhD and postdoctoral programs in quantum

technologies 40.6%
C-DoQ
37.3%
Technology Development and
Translation

Source: National Quantum Mission (NQM). Note: C-DoQ is the Center for Development of Quantum, intended to be an R&D hub under the mission’s umbrella.
 India’s scientific progress and quantum talent looks positive
India has a right to win in the quantum race owing to the efforts in scientific research and the high number of papers being published

Global share of peer reviewed scientific publications in quantum compute

India had 5th highest number of

papers published in 2023

>60% quantum jobs require at least a doctoral degree in quantum computing

● India produces more than 24,300 doctoral graduates each year, the number lies among the top PhD producing countries.

● This abundant academically qualified individuals can be easily trained to take up quantum computing jobs with specific training. India
can be one of the leaders in the sector if we leverage our academic institutions, human resources and research infrastructure to do so.

Source: McKinsey, Michel Kurek

Quantum Adoption
Timeline
 The road to quantum advantage: How close are we?
Quantum computing technologies and industry is currently immature and has some uncertainty for viability and value of use cases, significant
industry adoption will be seen after the QEC advantage threshold is surpassed

● Currently in the Noisy Intermediate Scale (NISQ) Era – limited qubits, prone to errors, lack full error correction capabilities. Hardware
constraints and competition from advanced classical computing methods like AI, will keep immediate commercial value under wraps
● Broad quantum advantage in the next decade – increased qubits, reduced error rates, quantum systems will begin to outperform classical
computers in material discovery, optimization problems and risk modelling
● Fault-Tolerant Quantum Computing (FTQC) will have fully error corrected and reliable execution of complex algorithms over extended periods.

Source: BCG, Quantum Computing Report , Olivier Ezratty

 Slow unlocking of algorithms and applications on the way towards
fault–tolerant quantum computing

The wave of quantum technologies is unique in that it is even more unpredictable and difficult Recent Headlines
to grasp than the other digital technology waves. Investors need to take some time and effort to
check the claims made and find out the real technology readiness, computational and
economic quantum advantage.

Source: Olivier Ezratty, Reuters

 Investing in quantum computing – when and where?
Ventures in application software, and cryptography are likely to receive venture investments in the near term, and fault-tolerant hardware and
full-scale quantum networks will see more selectivity

0-5 years 5-10 years 10+ years

Software and early hardware wins Broad quantum advantage emerges Disruption and deep hardware bets

● Quantum software with focused ● Fault tolerant quantum processors ● Scalable, fault tolerant quantum
applications in optimization, computers with 1000+ logical qubits
material discovery and ● Quantum cryptography and secure delivering highly reliable
cryptography communications using QKD and computations
PQC
● Photonic and Quantum Dot qubits ● Global quantum networks and
offering easier and low cost ● Industry specific quantum internet infrastructure
fabrication with early scalability applications in finance, logistics,
energy and more ● Quantum AI and autonomous
● Quantum cloud services offering decision systems
hardware-as-a-service, development ● Error correction software and
platforms and industry specific hardware, noise resistant qubits
solutions

Software and cloud-based solutions will Quantum hardware and middleware will The era of full-scale quantum computing
generate revenue before fault-tolerant start delivering commercial benefits at will disrupt global industries, making early
hardware arrives scale investments highly profitable

Source: Blume Analysis

 Quantum lingo decoder

Qubit: Imagine flipping a coin that stays in both heads and tails at the same time until you check - it’s not just 0 or 1 like regular computer bits; it’s both!

Superposition: The ability of a qubit to exist in multiple states at once. Imagine being in two places at the same time - quantum particles can do that!

Entanglement: A mysterious connection between qubits - change one, and the other instantly changes, no matter how far apart they are. Einstein called it spooky action at a distance.

Quantum Tunneling: Ever seen a ghost walk through walls in movies? In the quantum world, particles do something similar - skipping barriers instead of climbing over them.

Quantum gates: Like logic gates process bits in classical computing, quantum gates manipulate qubits to perform calculations. But they don’t just flip 0s and 1s; they operate in complex
ways using probabilities!

Quantum Interference: Imagine ocean waves colliding - sometimes they amplify, sometimes they cancel out. Qubits use this trick to compute faster and smarter than classical computers.

Decoherence: The buzzkill of quantum magic - when qubits lose their special state due to outside interference, like a perfectly stacked house of cards collapsing from a gust of wind.

Quantum Supremacy: Not a sci-fi villain’s title! It’s the moment when a quantum computer solves a problem no regular computer can handle in a practical timeframe.

Quantum Algorithms: Like secret recipes that only work in the quantum kitchen - special instructions that let quantum computers crack complex problems way faster than classical ones.

Quantum Annealing: Nature’s way of finding the best solution - like a metal cooling into its strongest form, quantum computers use it to solve optimization puzzles efficiently.

Quantum Error Correction: Because qubits are finicky, we need quantum spellcheckers to detect and fix mistakes without ruining calculations.

Cloud Computing: Instead of owning a quantum computer (because they are complex and expensive), companies let you run quantum tasks remotely - like renting superpowers online!

QFT (Quantum Fourier Transform): A powerful math trick that helps process information super-fast - imagine solving puzzles at lightning speed instead of slow trial-and-error.

Quantum Sensors: Devices so sensitive they can detect gravitational waves, measure tiny magnetic fields, or even map the underground without digging. Future tech at its finest!

Deep tech valley of death: The level that all deep-tech startups must beat—where high R&D costs, long timelines, and skeptical investors test their survival skills.
Photon Number Resolving Detectors – PNRDs can count the exact number of photons in a quantum system, making them game-changers for secure quantum communication, optical
computing, and ultra-precise sensors.
High-Performance Computing (HPC) – Supercomputers on beast mode. HPC systems use thousands (or even millions) of processors working in parallel to handle extreme-scale
simulations, AI training, and crunch complex problems that classical computers can’t.

Note: An LLM has been used for the descriptions.

Meet our author

Akhilesh Agarwal
akhilesh@blume.vc

Blume Ventures is among India’s leading early-stage venture funds, investing in tech led ventures across sectors. We
are presently investing our of our US $290m fund IV. We are sector agnostic investors and typically invest through
Seed to Series A stages with a preference to come in early.
Thank you!
While we are thesis driven, we are also open to questioning and changing our
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