European quantum funding currently accounts for only 5% of global private capital allocated to quantum computing companies, according to European Commission data, as Brussels prepares to release the first draft of a Quantum Act in the second quarter of 2026.
In contrast, the United States attracts 50% of global private quantum investment. The funding gap has prompted warnings from investors that Europe risks falling behind in quantum technology, as it has in artificial intelligence.
Recent VC Activity Signals Growing Interest
European venture capital activity in the quantum sector has increased recently. Paris-based Quantonation launched a €220 million oversubscribed quantum computing fund last month. Meanwhile, Danish fund 55North announced a record €300 million fund dedicated to quantum startups last year.
Finnish quantum computing company IQM, which became a unicorn six months ago, has announced plans to go public via a special purpose acquisition company merger in the United States. The move would make IQM one of the first publicly listed European quantum computing companies.
European Quantum Funding Lags Despite Policy Push
Daiva Rakauskaitė, CFA, partner and fund manager at Aneli Capital, said Europe must act beyond policy ambition to remain competitive. The Vilnius-based fund manages €35 million in early-stage venture capital, licensed by the Bank of Lithuania since December 2025.
“Europe already lags behind many US companies and universities, which are already advanced in the quantum field. If Europe does not want to lose the quantum race to the US and China, as it does in AI, it must first give startups the freedom to move fast and avoid burdening them with regulation on a market that is still taking shape.”
Daiva Rakauskaitė, Partner and Fund Manager, Aneli Capital
McKinsey Projects $97 Billion Market by 2035
A McKinsey report estimated that the three core pillars of quantum technology — quantum computing, quantum communication, and quantum sensing — could together generate up to $97 billion in revenue worldwide by 2035. The technology is expected to transform industries ranging from pharmaceuticals and finance to cybersecurity.
However, quantum systems also pose a long-term risk to existing IT infrastructure, as future quantum computers could undermine current encryption methods. Rakauskaitė said Europe must develop post-quantum security solutions while simultaneously identifying the most promising commercial applications.
“While it is impossible to predict when scientists will make the next major quantum breakthrough, Europe’s biggest mistake would be to wait passively for it. Companies working in sectors like pharmacy, finance, and logistics should already be running pilots and testing practical use cases to understand where quantum can create value.”
Daiva Rakauskaitė, Partner and Fund Manager, Aneli Capital
Pension Assets Could Unlock Private Capital
Rakauskaitė noted that Europe holds roughly €3 trillion in pension assets, yet venture capital represents only a small fraction of that total. She said voluntarily channeling more capital from long-term institutional investors, such as pension and endowment funds, into venture capital could significantly accelerate quantum commercialization.
She added that Europe already possesses the foundations for a leading quantum ecosystem, including top universities, strong technical talent, public support programs, and a solid industrial base. The challenge, she said, is converting those strengths into companies that can move from laboratory research to commercial products.
Public funding will continue to play a critical role in the near term, Rakauskaitė said, as it supports new startups that will eventually attract private investors. The economy-wide implications of quantum technology make the policy and investment decisions of the next few years particularly consequential for Europe’s long-term competitiveness.