The Quantum Race is ON - and Israel is Making Bold Moves
- doritdor10
- Jul 8
- 2 min read
As quantum-focused investors, we're watching the Israeli quantum ecosystem with great interest. The latest mapping by Earth & Beyond Ventures and Deloitte Catalyst reveals a compelling story: 9 core quantum computing startups have raised $650M, with over $300M in 2025 alone.
What catches our attention as quantum investors:
Scale vs. Impact: While $650M may seem modest compared to multi-billion national programs in the US and China, Israel's track record of "punching above its weight" in deep tech makes these numbers far more significant than they appear.
The Inflection Point: Quantum computing is transitioning from lab to industry - exactly where we want to be positioned. Companies like Quantum Machines ($170M raised) and Classiq ($110M) are leading this commercial transition.
Ecosystem Depth: Beyond the 9 core companies, 15+ startups are developing quantum sensing, communication, and advanced materials - creating a robust innovation cluster that benefits the entire sector.
Government Backing: Israel's 100M shekel ($27M) national quantum program signals serious commitment, even if smaller than global competitors. This creates a foundation for private capital to build upon.
The Investment Thesis: We're at a rare moment where brilliant researchers, battle-tested entrepreneurs, and proven commercialization capabilities converge in quantum technology. For quantum-specialized investors, this represents an exceptional opportunity to participate in the next computing revolution.
The commercial promise - from next-gen encryption to drug discovery optimization - may fully materialize in the early 2030s, but the companies building these capabilities are being formed today.
As Noga Yaari from Earth & Beyond Ventures puts it: "Israel's ecosystem gives it a unique edge: brilliant researchers, battle-tested entrepreneurs, and a system that turns deep science into real companies."
For quantum investors, Israel isn't just on the map - it's becoming a critical waypoint in the global quantum race.
Read the full analysis on Ctech by Calcalist >>