An agile, entrepreneurial quantum ecosystem
There is a gap in the rearview mirror to the World of Quantum 2025. A forum organized by Israel's National Quantum Initiative (INQI) was canceled due to travel restrictions in effect at the time. But that can still be caught up on. Learn about the initiative here.
Recognizing quantum computing as a key growth area, the Israeli government launched the Israel National Quantum Initiative (INQI) in 2018 with an initial budget of approximately USD 390 million. The funding program supports quantum computing, communication, and sensing, including the development of a national quantum computing center and strategic international partnerships. Today, the nation known for its strong technology sector and its vibrant start-up culture is a rapidly growing hub for quantum technology innovation. The sector has attracted over USD 650 million in venture capital investments, underlining investor confidence in Israel’s quantum potential.
In 2025, Israel appointed a follow-up committee to advance its National Quantum Initiative. There are three lessons learned from the initiative. First, the value of early investment and government support in new technologies. Second, the need for interdisciplinary collaboration between physicists, engineers, and computer scientists. And finally, the importance of flexible planning, as quantum technologies are evolving rapidly and require adaptive strategies. Israel's approach shows how a small country can become a driving force in quantum innovation by aligning national priorities with global technology trends.
Industry and research team up
In June 2024, INQI reached a major milestone: The Israeli Quantum Computing Center (IQCC) started up operations at Tel Aviv university. This state-of-the-art facility combines multiple quantum computing technologies with high-performance classical computing resources, creating a hub for researchers and industry professionals to drive quantum advancements. Entrepreneurship thrives in this quantum computing ecosystem. The number of firms in this field has already surged from 5 to 30 in recent years, spanning hardware and software solutions for both defense and civilian applications. The ecosystem is open to international collaboration and invites companies and research partners to get involved and benefit from the next wave of advances in quantum computing and transformative business opportunities.
Building on existing strengths
INQI's strategy is to build on existing strengths. As a global leader in cybersecurity, Israel is applying its expertise to quantum cryptography which utilizes the principles of quantum mechanics to reliably shield communication channels against hacker attacks. Here, Israeli start-ups are using their in-depth knowledge of traditional cryptography to develop quantum-resistant algorithms and protocols that will ensure data security in a future where quantum computers might break current encryption methods. Another strength is the outstanding research environment including the Weizmann Institute of Science or the Hebrew University of Jerusalem, which are at the forefront of quantum research. They not only contribute to fundamental research in quantum physics but also foster collaboration with the private sector, translating academic breakthroughs into commercial applications. Direct practical application of the new methods in defense and intelligence creates deep understanding of cryptographic techniques and a mission-driven approach to solving complex problems, which, among other things, explains the strong entrepreneurial spirit. In addition to government funding and the vibrant, notoriously impatient start-up scene, these strengths are generating significant traction for Israel’s young quantum sector.
Determined entrepreneurial approach
The former field of basic research is strongly characterized by entrepreneurial spirit. Companies like Classiq Technologies or Qedma contribute innovative software solutions to ease and improve quantum computing. Classiq specializes in simplifying the development of quantum algorithms with low-code quantum developer environments that automate the compilation of high-level functional models into optimized quantum circuits. They can be executed on any quantum hardware which already allows researchers and developers to address complex problems in finance, chemistry, and optimization with greater efficiency. Qedma focuses on advancing through software solutions designed to enhance the performance of quantum computers. They offer a suite of error-handling solutions for the quantum ecosystem, including quantum error suppression and mitigation (QESEM) as well es high-precision characterization software for multi-qubit systems. Qedma aims to improve quantum processor design and reduce errors, enabling high-accuracy results on today's quantum computers. Also IBM is an important part of the quantum technology ecosystem in Israel. In addition to its own research sites at IBM Research Israel, the company is involved in start-ups, including Qedma.
Representatives of this quantum entrepreneurship also include hardware manufacturers like Quantum Art, a pioneer in the filed of next-generation trapped-ion quantum computers with highest flexibility and scalability, or Quantum Transistors, a team that provides scalable, noise-resistant photonic technology for quantum processors. Other actors are HEQA Security and Quantum Machines. The latter is developing state-of-the-art control and orchestration systems for quantum processors including hard- and software. The companys Quantum Orchestration Platform (QOP) aims to facilitate current quantum research and development and enable future quantum breakthroughs. HEQA Security is committed to safeguarding data communication against both existing and emerging cyber threats posed by quantum computers. These products are already used by leading telecom operators, defense organizations, global cloud providers, and financial institutions worldwide.
They all share a determination and hands-on approach, translating the latest research findings into products and seeking immediate collaboration with customers. They know that learning curves are steepest where technology must prove itself in the market and where players react immediately in agile processes if an approach reveals weaknesses in practical application.