PitchBook’s Post

My article on investing in quantum technologies.

More, more, more in 2024! Ion Hauer from APEX Ventures, shared his predictions for Quantum Technology this year with Sifted’s Daphné Leprince-Ringuet. He predicts that public funding programmes in quantum will exceed €15bn and private investments will reach €500m across the year 💰 Also fantastic to see Runa Capital’s Francesco Ricciuti sharing his thoughts, predicting more companies will achieve a quantum processor exceeding 1,000 qubits 🧑💻 - and for Hauer, one could hit 2,000 qubits this year 💥 We look forward to seeing these predictions materialize and watching developments in the quantum computing world! 🌍 Read more in the article below 👇 #QuantumComputing #Quantum #VentureCapital https://lnkd.in/ewP9fwmT 

As 2023 draws to a close, It will be great to hear insight into what these firms look for in emerging quantum startups as well as up-to-date performance data benchmarked against other tech investments. In-Q-Tel, Qubit Ventures, Quantacet, General Innovation Capital, US Advanced Computing infrastructure, Inc. and The Quantum Insider reflect on the year in quantum deals. With major funding rounds still being announced this year, could we see a final investment push in the industry before 2023 wraps up? QED-C Mark Wippich #quantumtechnology #quantumcomputing #quantuminvestment #quantumstartup

📈 Not holding #NVIDIA in our global portfolios has certainly cost us relative to the global index in the last 12 months, so it's great to see the Waverton Investment Management's Global Equity Fund, managed by Tommy Faber, CFA and Team, in this list of the 17 top-quartile funds without stock in their top 10 holdings 💡 https://lnkd.in/e6R9XhuK

Life cycle investing: Nvidia’s 310% surge driven by ‘reverse ageing’..... Not all fast-growing companies are at an early stage of their corporate life, as Nvidia's fourfold return in the past year shows. Mature companies which revert to their high-growth stage can be the most profitable investments. https://lnkd.in/et4pZyJn

“Infleqtion will become the JDSU for the quantum market. The first quantum sensors will go into FDA certification and quantum sensors, generally, will become more common. We will see the first quantum sensors tested in smart infrastructure applications..." - Stuart Woods, Quantum Exponential   Matt Swayne at The Quantum Insider asked the best VCs with a strong understanding of the complex, emerging #quantum computing industry to give us an idea of what 2024 will be like for quantum. Thanks to Stuart Woods for sharing his perspective on Infleqtion.

Sometimes we need to take a step back and take a moment to understand the journey thus far - whilst acknowledging the enormous contribution of the many many many people who have helped build our company, Quantinuum. From a personal point of view, my quote that was carried in The Quantum Insider is the most appropriate thing I can say right now, in addition of course to my gratitude and thanks to so many people that I cant possibly list them. My comment below: "Our entire focus is consumed by a singular mission – building the world’s leading quantum computing company in the long run,” said Khan, who, behind Honeywell, is one of Quantinuum’s largest shareholders at approximately 20 percent. “The team that drives this passion – from our scientists, technicians and engineers, through to teams that ensure best practices in finance, HR, marketing and others are distributed now in North America, Europe and Asia. We are a fully integrated technology enterprise and the confidence that has been exhibited by our investors is simply a prompt for us to work even harder as we soon start the next stage of the journey to turn the corner from quantum processors that are exciting but still largely experimental to computers that scale and run the applications we have designed and painstakingly created. We are genuine leaders in every area in which we operate and those areas are the ones that count for our customers. I’m excited to unveil advances in the coming weeks and months that will further be the essential accelerant that our sector needs. It’s not for nothing that we are seen as the essential drivers and enablers of the world’s quantum ecosystem. Coincidentally I founded Cambridge Quantum almost 10 years ago in July 2014 and the merger with Honeywell Quantum Solutions – who also started around the same time – has been an incredibly powerful catalyst in creating the worlds leading quantum computing company.”

2...... The direct route On top of mutual funds, those investing directly on stock markets are also getting attracted to the company’s stock rally. As per Vested Finance, an overseas investment platform by volume, Nvidia is the second-most popular stock (after Tesla) on the platform over the past six months with trading volumes of more than $25 million. “Volumes have doubled in February against last month. Last week, Nvidia was the number 1 trending stock, in terms of the number of investors and volumes. The company is now the sixth most widely held stock on the platform, while it was not even in the top 10 a year ago. This shows the increasing awareness of the potential of artificial intelligence in the years to come," says Viram Shah, CEO, Vested Finance. As per Shah, while direct investing in the US stocks is picking up pace in the recent months, it is yet to reach the peak of 2021. Why the rally in Nvidia? Artificial intelligence or AI has been the talk of the town and Nvidia's AI GPUs are getting much of the attention, thanks to the ongoing generative AI boom. Major technology majors such as Open AI, Google and Twitter are betting big on AI, which means it is building a new ecosystem. This requires processing of huge amounts of data, which needs data centres and cloud capacity, which, in turn, require semiconductor chips. “In the last few years, there were three possibilities for AI chips, graphics processing unit (GPUs), Field Programmable Gate Arrays (FPGAs) and Application-Specific Integrated Circuits (ASICs). But GPUs have won the race so far. Meanwhile, Google, Amazon, Microsoft and Apple are also working on their chip technologies. But today, Nvidia GPU is the gold standard, and they are expected to have an advantage over the next few years. This has led to an extraordinary growth rate in revenue and earnings, which is again going to be there for a few years, till competition starts getting stronger, in the next two to five years,” said Vikas Gupta, Chief Executive Officer and Chief Investment Strategist at OmniScience Capital. However, Gupta warned that after the recent rally, Nvidia might not be a great company to have in a portfolio as the stock has already seen quite a decent run- up. OmniScience Capital has a fund called Omniscience AIoT (Artificial Intelligence-Internet of Things) that invests in disruptive technologies such as AI, IoT, Cloud, 5G, Big Data, Robotics, Analytics and Cybersecurity, among others. “It is one of the most important companies that we don't have in our portfolio. However, we are keeping a close eye and we would like to invest in the company but only at the right time and price,” said Gupta.

Nvidia's market cap just skyrocketed, equating to an entire Tesla's worth in just one month. Unbelievable, right? But hold your breath. The secret to a sound investment strategy isn't buried in this news. Quality money management isn't about hitting the bullseye on one perfect stock. It's akin to riding the wave of momentum. Trust me, it's not as glamorous as it sounds, yet it's far more reliable. We often chase the 'next big thing', the 'hot stock tip,' or the 'golden goose.' But here's the twist - it's not about hunting for the golden goose, it's about owning the farm. One way to secure your claim on the farm is by owning a diversified set of stocks. ETFs, with their broad exposure, make an excellent tool for this purpose. So, take a step back. Don't get caught up in the frenzy. Instead, play the long game. Let time weave its magic on your portfolio. Invest, diversify, and let patience be your new strategy. Because in this game, time is your most potent ally. Remember, Rome wasn't built in a day, and neither is a solid investment portfolio.