Europe risks repeating its artificial intelligence (AI) missteps in the race for quantum leadership unless it takes urgent and decisive action, industry experts warn, as the European Commission prepares to unveil the first draft of its much-anticipated Quantum Act in the coming months.
The proposed legislation is intended to position Europe as a global leader in quantum technologies. However, investors caution that without structural reforms, the region could once again fall behind competitors such as the United States and China, both of which have already established strong momentum in quantum computing, funding, and commercialization.
Recent investment activity indicates growing interest within Europe. Paris-based Quantonation recently launched an oversubscribed €220 million quantum fund, while Denmark’s 55North announced a €300 million fund dedicated to quantum startups. At the same time, Finnish company IQM—which achieved unicorn status earlier this year—has revealed plans to go public in the U.S., highlighting both the region’s innovation potential and its reliance on external capital markets.
Despite these positive signals, a significant funding gap persists. European Commission data shows that only about 5% of private capital in quantum computing is directed toward European companies, compared to roughly 50% in the United States. This imbalance reflects deeper structural challenges, including fragmented markets, limited late-stage funding, and slower pathways to commercialization.
Daiva Rakauskaitė, manager at Aneli Capital, emphasized that while the Quantum Act is a necessary step, it must be complemented by policies that enable speed and flexibility. She warned that introducing heavy regulation at an early stage could stifle innovation in a sector that is still evolving. Instead, she argued, startups should be given the freedom to scale rapidly and experiment without regulatory constraints that could delay progress.
The stakes are high. According to McKinsey & Company, quantum technologies—including computing, communication, and sensing—could generate up to $97 billion in global revenue by 2035. These technologies have the potential to transform industries ranging from pharmaceuticals and materials science to finance and logistics, while also redefining cybersecurity frameworks.
However, the same advancements could pose significant risks. Future quantum systems may be capable of breaking existing encryption standards, creating urgent demand for post-quantum security solutions. Experts stress that Europe must simultaneously invest in both innovation and resilience to safeguard its digital infrastructure.
Beyond policy, the path to leadership will depend on commercialization. Rakauskaitė noted that Europe already has strong foundations, including world-class universities, technical talent, and public research programs. The critical challenge now is translating these strengths into scalable businesses that can move from laboratory breakthroughs to market-ready solutions.
A key lever will be unlocking private capital. Europe’s pension and endowment funds—estimated at around €3 trillion—remain largely underutilized in venture investment. Redirecting even a small portion toward quantum startups could significantly accelerate growth and global competitiveness.
While public funding will continue to play a vital role in early-stage development, experts agree that Europe must act decisively to bridge the gap between research and commercialization. Without bold action, the region risks once again ceding technological leadership—this time in quantum—to faster-moving global rivals.
