According to Novo Holdings, from 2014 to 2025, about 70% of the $13.9 billion in private investment in the quantum sector has flowed into hardware and components. Meanwhile, funding for business-focused quantum applications is falling short compared to their potential value.

Novo Holdings' Take

The report's authors say the next phase for quantum tech isn't just about building better quantum computers. It also needs targeted investments in specialized algorithms and services—tools that help users pick molecules for research, plan experiments, and tackle other real-world problems.

Why Apps Need More Attention

This investment imbalance is pushing progress toward hardware, leaving the application layer starved for resources. Without robust algorithms and services, it's tough for the industry to turn quantum computing power into real-world value for users.