In the quantum industry, discoveries and innovations emerge daily, and startups are engulfed in a whirlwind of go-to-market challenges, looking for ways to stand out within an ever-expanding ecosystem. It isn’t just about standing out but navigating a new school of problems when transitioning from lab to market.
QAI Ventures is a global quantum ecosystem builder with offices in Basel, Switzerland, and Calgary, Canada, that harnesses quantum industry expertise and a deep network of experts. The firm extends beyond financial investment and aims for positive change through quantum technology applications, nurturing startups and spinouts, Thequantum Insider reported.
The path from scientific breakthrough to commercial success is plagued with difficulties. Startups in the industry struggle with finding product-market fit, competitive analysis, and developing the right communication strategies to resonate with intended audiences.
QAI Ventures utilizes “patient capital” with an understanding of quantum technology and market dynamics to support quantum startups in challenges not rooted in physics or engineering.
This article aims to shed light on these transitional challenges, providing insights and advice for founders and CEOs of quantum technology startups while highlighting QAI Ventures’ supportive role.
The quantum startup journey often begins in STEM academia, where technological breakthroughs first take off. Founders typically ‘spinout’ armed with technical expertise and a vision for translating quantum theories into valuable practical applications.
Following the emergence of startup development, the transition from academic research to a viable business materializes across several stages, such as forming a core team and developing a working prototype with product-market fit.
Funding, however, often presents the most significant challenge, as quantum technology requires substantial investment in research and development. To secure the necessary financing, founders frequently turn to government grants, venture capital, and strategic partnerships. While government funding and tenders can get quantum technology startups part of the way to market, private capital is necessary to follow through to success. Quantum computing, sensing, and networking are highly specialized, meaning startups need investors who understand the technology’s long-term potential—also called “patient capital.” This requirement can narrow the pool of potential financial partners.
Crafting an effective business and marketing strategy is also a hurdle for startups founded in a lab environment. Quantum startups are beginning to test product-market fit, seeking early adopters as customers to establish credibility. The complexity of quantum technology means scientific knowledge alone isn’t enough to craft a successful marketing strategy. Founders have to learn business know-how to translate nuanced and complicated technology into a marketable product that customers can understand the value of.
The path from academic discovery to market entry is challenging but necessary. Quantum startups have the opportunity to shift the technology landscape, transform lives, and reshape economies and societies with groundbreaking solutions.
The science of quantum technology is as complex and nuanced as its business and market potential. This means that the growth and untapped market value of quantum technologies remain unexplored, necessitating a shift in mindset to harness this growth prospect. It is vital quantum stakeholders move away from a supply chain mentality of delivering goods and services. Rather, quantum leaders must adopt a value chain-focused strategy that broadens the view into considering all aspects that bring value to a quantum company’s product and solution.
Adopting a broader value chain approach over a narrow supply chain view on quantum technologies means companies incorporate all operations that attribute value to a quantum solution.
For example, a supply chain approach focuses solely on upstream and downstream activities such as raw materials, component efficiency, and after-sales services. A value chain approach adds supporting activities to the up- and downstream such as onboarding new talent and changes in regulatory parameters.
It is a holistic approach to adding value to a quantum technology solution. Doing so means startups move from a proof-of-concept to a practical product where additional variables are considered.
Stakeholders adopting the value chain approach can segment viable audiences for the best product-market fit, targeted at their specific needs and interests. Knowing your audience means startups can tailor the messages that resonate with them and solve their particular problems.
Once a value chain perspective has been adopted and a detailed audience list has been made, stakeholders can map out direct and indirect competitors.
Mapping involves analyzing the market landscape in which the startup aims to establish itself. By identifying companies developing the same technology and companies that indirectly solve the same problem, the startup is building a map of competitors creating similar technologies for a competitive advantage. Once the competitors have been mapped, the startup must analyze its marketing and communication methods to inform its response.
Pinpointing these market opportunities requires a stakeholder understanding of quantum limitations and opportunities. Quantum startups must create a compelling value proposition highlighting how their technology better addresses an unmet need than current non-quantum solutions. During this process, startups engaging with potential clients and partners, such as financiers, help refine their value proposition to better resonate with the market, improving quantum product adoption.
QAI Ventures offers expertise and resources to support quantum technology startups navigating the journey from lab to market. QAI Ventures accelerates commercialization by providing financing, mentorship, and access to a network of industry and academic experts, helping quantum technology startups overcome common hurdles in commercialization.
Synergizing scientific innovation and business strategy is key in quantum. Establishing a strong product-market fit means startups must develop cutting-edge technology while understanding and adapting to market demands.
Entrepreneurs in quantum computing face unique challenges given the budding sector’s complex technology. Drawing inspiration from broader business and marketing principles, a few strategies are particularly relevant for quantum startups. One key strategy is to focus on solving real-world problems rather than showcasing just the technological capabilities.
Another is to pursue collaboration with academia and industry to co-develop solutions and build credibility through partnership development and thought leadership.
A third beneficial approach is clear, jargon-free communication of quantum solutions. Clear communication can demystify complexities for non-experts and decision-makers who dictate the line between lost opportunities and long-time partners or customers.
Kipu Quantum is one example of a quantum startup implementing these approaches and navigating the market by targeting early quantum computing industrial use cases. Kipu bridges the gap between technological capabilities and practical applications by developing application- and hardware-specific quantum algorithms packaged into software. Kipu can offer value to customers years ahead of broader market developments, gaining a leg-up from the competition.
Kipu Quantum effectively aligns quantum innovation with market needs, inspiring quantum entrepreneurs.