Dear friends,
Barclays Eagle Labs has recently published a report entitled ‘Decrypting the UK's high-growth quantum technology companies’.
Some points to highlight:
Companies with all-male founding teams dominate the sector, accounting for 76.3% of the active population of quantum businesses. Companies with mixed-gender founding teams account for 18.4% of the companies, with all female-founded companies accounting for the remaining 5.26% of companies. Most founders of UK high-growth quantum companies are UK nationals (73.7%), 17.1% of founders have a European nationality, and the remaining 9.20% of founders have non-UK or non-European citizenship.
The stats above clearly underscores the substantial efforts needed to enhance gender diversity. Indeed, addressing gender diversity in quantum technologies in the UK and globally requires concerted efforts across the board, including education institutions, businesses, and policymakers. Although we are seeing an increase in initiatives fostering an inclusive culture in the quantum computing community, more still needs to be done in promoting STEM education for girls and implementing policies that support women in the field.
The regional distribution of quantum companies in the UK highlights a notable concentration in the South East, where 11 companies are headquartered. This concentration can partly be attributed to the strength of quantum research at the University of Oxford, which has spun out eight quantum technology companies. The region’s strength in the sector is also bolstered by the presence of the National Quantum Computing Centre, a UK Research and Innovation (UKRI) funded quantum computing research centre based in Harwell. Nearly half (47.1%) of the active population of high-growth quantum companies are spinouts. These companies are clustered around the "Golden Triangle" of the university cities of Cambridge, London, and Oxford.
Even though quantum technologies are emerging, further efforts are necessary to achieve a more balanced distribution of quantum companies throughout the UK.
Public funding plays a pivotal role in the growth and development of businesses in the quantum sector. In 2022 high-growth quantum companies received a significant £24.8m in grant funding—the highest annual total for companies in the sector. Innovate UK awarded 53 grants, worth £22.6m—accounting for approximately 91.1% of grant funding received by quantum companies in 2022.
Private early-stage deep-tech investors have a unique chance to partner with the UK government in backing ventures that might otherwise struggle to attract conventional private capital due to their risk profile. Quantum technologies stand poised to transform various sectors such as cryptography, material science, medicine, and AI. Consequently, by investing in this domain, investors can actively participate in and profit from this imminent wave of disruption.
Side note: We appreciate the mention of Zaiku Group in the report (refer to page 8), although the spotlight rests primarily on our niche consulting services. This is largely because our internal product R&D initiatives tend to unfold quietly behind the scenes! ;) Among these stealthy initiatives, we're gradually making some strides in areas such as Federated Quantum Learning (utilising classical data) and Post-Quantum Cryptography.
Many thanks for reading. We look forward to sharing our deep-tech community & venture building journey with you.
Zaiku Group team
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