TL;DR: Europe’s Quantum Startups Need Strategic Public Investment to Scale
European quantum startups are struggling to scale due to funding gaps, talent retention challenges, and operational hurdles. Strategic public investments like the EIC STEP program provide equity funding up to €30M and build partnerships with private investors, enabling growth in quantum technologies such as computing and communication. Initiatives like the Quantum Flagship strengthen Europe’s technological sovereignty.
• Public funds support liquidity and reduce risks for quantum startups.
• Scaling requires infrastructure investment and skilled talent development, as shown by IQM’s expansion.
• Focus on public-private collaborations to validate use cases and accelerate commercialization.
Explore more at STEP funding opportunities for startups and IQM Quantum’s Finnish facility expansion.
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Europe’s quantum technology startups are primed to transform industries, yet scaling up remains a monumental challenge. While the U.S. and China dominate the global quantum landscape with lavish private and government funding, European innovators often grapple with fragmented investment streams and operational bottlenecks. Strategic public investment, however, offers a solution for bridging these gaps and accelerating scale-up efforts.
How Does Public Investment Drive Quantum Scale-Up?
“Scaling startups effectively demands more than just vision, it takes calculated funding strategies and ecosystem support”, says Violetta Bonenkamp, a serial entrepreneur and deeptech expert. The European Innovation Council (EIC), with initiatives like the EIC STEP Scaleup Call, plays a pivotal role in providing capital to budding quantum companies. These programs enable startups to secure equity investments of up to €30 million while facilitating partnerships with private investors, reducing the typical risks associated with this high-tech sector. Learn about STEP funding opportunities for startups.
Why is Strategic Public Investment So Important?
Public funds, like those administered by the EU, not only provide the liquidity necessary for ambitious projects but also signal reliability to private investors. According to a recent analysis on the European quantum landscape, early-stage funding in quantum startups surged to €66.4 million in mid-2025. Programs like the Quantum Flagship and dedicated supply chain investments have accelerated breakthroughs in quantum computing, quantum communication, and sensing technologies. By reinforcing technological sovereignty, Europe aims to maintain control over strategic applications like AI-driven quantum cryptography and quantum-secure infrastructures.
What Challenges Do European Quantum Startups Face?
European quantum companies face steep operational challenges compared to their counterparts in the U.S., chief among them is scalability. Fragmented funding channels, lack of experienced scale-up professionals, and high costs tied to long R&D cycles hinder many ventures from achieving international success.
- Fragmented Investment: Private investments in quantum startups in Europe declined by 40% between 2023-2024, while U.S.-based funding tripled.
- Talent Retention: With fierce global competition, retaining specialists in quantum physics, computer engineering, and algorithm development proves challenging.
- Lack of Operational Expertise: Setting up large-scale quantum computing facilities requires highly specialized knowledge and repeated entrepreneurial experience, which is scarce in Europe.
Strategies to Scale Faster
European startups face many familiar hurdles in funding and operational logistics. Here’s how public investment programs can act as accelerators:
1. Leverage Public Procurement as a Growth Engine
Governments should prioritize purchasing quantum products from startups instead of merely offering grants. Real-world use cases validate technologies for industrial applications and generate revenue that attracts more private investors. For example, Finland’s EIC STEP initiative has shown success in coupling equity funding with public-private partnerships. Learn about IQM Quantum’s €40M Finnish facility expansion.
2. Strengthen Regional Supply Chains
Scaling globally isn’t just about funding; it’s also about infrastructure. Europe lacks the vertically integrated ecosystems found in the U.S., where companies like Google manufacture chips alongside software development. Strategically investing in regional supply chains for quantum technology ensures long-term technological sovereignty and smooth transitions from R&D to production.
3. Invest in Scaling Talent
The European Quantum Skills Academy, set to launch in 2026, promises to standardize curricula across EU nations to train specialists and improve talent mobility. Investment in repeat entrepreneurs and dedicated mentorship initiatives can supplement technical development risks with operational expertise.
Common Mistakes to Avoid When Scaling
Scaling too quickly, not integrating sustainable development practices, or failing to build strategic partnerships can lead to pitfalls. Here are the most common mistakes:
- Overlooking public-private collaboration opportunities like those in the Quantum Flagship program.
- Failing to adapt cutting-edge innovations into scalable product lines, 98% of prototypes struggle in commercialization.
- Focusing solely on capital while neglecting operational efficiency and market adaptability.
Conclusion: Europe Needs United Efforts
Scaling quantum startups demands much more than funding, it hinges on ecosystem-building, operational discipline, and public-private collaboration. Public investment programs like STEP and the Quantum Flagship provide critical lifelines, but Europe must intensify these efforts to compete globally. For founders, the key takeaway is clear: align with strategic goals, secure growth-stage funding, and invest in both infrastructure and talent. If you’re ready to dive deeper, explore resources like Europe’s deeptech scaling successes.
FAQ on Scaling European Quantum Startups with Public Investment
How does public investment accelerate quantum startup growth in Europe?
Public investment acts as a catalyst for growth by bridging funding gaps and supporting startups through critical early and growth stages. Programs like the Strategic Technologies for Europe Platform (STEP) provide equity investments of up to €30 million and facilitate larger financing rounds with private co-investors. These investments de-risk quantum technologies for private backers, spurring innovation and commercialization. Additionally, public funding supports infrastructure development, such as manufacturing facilities and supply chains, essential for scaling quantum solutions. Learn about STEP funding goals.
What are the major funding challenges for European quantum startups?
European startups face fragmented funding streams and reduced investor confidence compared to U.S. counterparts. Between 2023-2024, private investments in quantum startups in Europe fell by 40%, while U.S. investments tripled. This disparity largely stems from operational complexities, long R&D cycles, and a lack of scale-up expertise. Public-private collaboration through initiatives like the EIC Scale-Up Program has emerged as a lifeline. Explore strategies for scaling startups.
Why is Europe’s quantum ecosystem seen as fragmented?
While Europe boasts strong university-led research, its quantum ecosystem suffers from a lack of cross-border collaboration and coordinated funding. Regional supply chains remain underdeveloped compared to the U.S., where tech giants lead integrated ecosystems. Addressing this gap requires scalable public funding and regional innovation hubs. Discover how ecosystems impact scaling.
How does public procurement boost quantum technology adoption?
Governments can accelerate quantum adoption by integrating quantum technology into public projects. For instance, Finland’s public procurement validated IQM Quantum’s solutions, securing investor trust and revenue streams. Such initiatives not only fund startups but also showcase real-world applications of quantum innovations. Read about IQM Quantum’s achievements.
What role do supply chains play in scaling quantum startups?
Integrated supply chains create the foundation for scalable quantum innovation. Unlike the U.S., which benefits from vertically integrated facilities like Google’s chip manufacturing, Europe lacks organic ecosystems for production and innovation. Strengthening regional supply chains is essential for achieving technological sovereignty and scaling international standards. Explore scaling solutions here.
Is talent retention critical for quantum scaling?
Yes, competition for specialized talent in quantum physics, engineering, and algorithm development is fierce. Europe’s Quantum Skills Academy, launching in 2026, will harmonize training and certification across EU nations, fostering a mobile, skilled workforce. Retaining talent also depends on improving mentorship and providing operational roles aligning with deeptech visions. Learn how skills drive success.
What funding models have succeeded in Europe’s quantum sector?
A hybrid approach combining private and public funding has proven effective. The European Innovation Council (EIC) offers equity capital complemented by grants. Additionally, cooperation with public development banks like Germany’s KfW enables quantum companies to secure long-term financing. Key examples include Series B funding rounds that attracted both venture capital and government-led investments. Investigate proven funding strategies.
What technological verticals benefit from public quantum funding?
European public investment prioritizes strategic verticals such as quantum computing, fusion energy, and quantum sensing. These technologies aim to bolster sectors like energy, healthcare, and network security. Strategic funding ensures Europe reduces dependence on non-European suppliers while fostering scalable innovation pipelines. Explore European tech priorities.
What commercial pitfalls should quantum founders avoid?
Rapid scaling without operational readiness often leads to failures. Mistakes like neglecting public-private partnerships, failing to adapt prototypes to mass-market versions, or overlooking supply chain dependencies can derail long-term growth. Founders must prioritize sustainable scale-up strategies rooted in resource allocation and market feedback loops. Learn from past startup mistakes.
How is Europe securing quantum sovereignty?
Through ongoing initiatives like Quantum Flagship and EIC STEP, the EU ensures control over critical quantum sectors, from chip production to defense applications. These programs focus on building proprietary infrastructures and training talent locally, reducing reliance on non-EU materials and technologies. Uncover sovereignty plans in Europe.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.