Israel Ranks Fourth in Private Quantum Investment as Sector Expands, According to Report

thequantuminsider.com Oct 26, 2026

Israel Ranks Fourth in Private Quantum Investment as Sector Expands, According to Report

Curated by Shubham · TechCapsules · Oct 26, 2026

AI-summarised brief · reviewed before publication

A joint report by the Israel Innovation Authority and C4IR Israel shows the country’s quantum sector expanding from roughly five firms and 50 staff in 2019 to more than 20 companies and about 1,000 employees by 2025. Israeli quantum startups secured nearly $500 million in private funding in 2025, accounting for roughly 9 percent of global private quantum investment and placing Israel fourth worldwide after the United States, United Kingdom and Canada. The study highlights a surge in quantum‑computing firms, rising from one to over ten during the period, and stresses Israel’s tightly knit ecosystem that links universities, defense labs, investors and startups. It recommends a targeted 2027‑2031 national program to bolster infrastructure, talent pipelines and international partnerships, focusing on areas where Israel holds comparative advantages such as software, algorithms, control systems and sensing.

💡 Why It Matters

· Israel’s compact, highly coordinated quantum cluster can translate modest funding into outsized innovation speed, giving it a strategic edge in shaping the emerging global quantum market.

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BIRD Foundation Backs Qarakal Quantum and Quantum Elements for Quantum-Accelerated Catalysis Modeling

The Israel‑U.S. Binational Industrial Research and Development (BIRD) Foundation has approved conditional grant funding for a joint quantum computational chemistry project between Tel Aviv‑based Qarakel Quantum and California‑based Quantum Elements. Selected as one of seven deep‑tech collaborations in BIRD’s September 2026 cycle, the initiative joins $7.4 million in conditional grants that aim to unlock roughly $20 million of public‑private investment. Reviewers from NIST and the Israel Innovation Authority will oversee the effort, which can receive up to 50 % of its budget—capped at $1.5 million—on a non‑dilutive basis, repayable via royalties after commercial revenue begins. The partners will develop a minimum viable product that embeds quantum algorithms to model heterogeneous surface catalysis, targeting more accurate predictions of binding energies and kinetic pathways than classical density‑functional or post‑Hartree‑Fock methods. The software is intended to give chemical manufacturers predictive tools for catalyst discovery and optimization, extending BIRD’s historic $470 million investment across more than 1,200 bilateral projects since 1977.

💡 By harnessing quantum computing to overcome classical electronic‑structure bottlenecks, the project could dramatically shorten the design cycle for industrial catalysts, delivering faster, cheaper routes to greener chemical processes.

quantumcomputingreport.com · Oct 25

New Mexico Deploys JTIP Workforce Grants to Support Quantum Hardware Hiring at…

State Economic Development New Mexico (EDNM) approved more than $12 million in workforce funding under its Job Training Incentive Program. Of the 33 commercial recipients, the agency earmarked wage‑reimbursement awards for two quantum ventures expanding operations in the state: trapped‑ion computer maker IonQ Inc. and Santa Fe‑based quantum‑sensing firm Bandelier Technologies. JTIP reimburses 50‑90 % of eligible employee wages for up to six months during structured onboarding. The grants follow earlier state technology‑commercialization awards, including $1.2 million allocated to regional quantum startups, reflecting New Mexico’s drive to commercialize deep‑tech IP linked to Sandia and Los Alamos laboratories. EDNM Cabinet Secretary Rob Black said more than half of the funded firms operate in priority fields such as quantum information science, fusion energy and aerospace defense.

💡 Targeted wage subsidies accelerate the hiring of scarce quantum‑hardware talent, turning New Mexico’s research hubs into a competitive production corridor.

quantumcomputingreport.com · Oct 25

Review Unpacks China’s Surging Neutral-Atom Ecosystem: World-Record Arrays, Commercial Systems, and Scaling…

A new arXiv review (arXiv:2608.05010) from Information Engineering University maps neutral‑atom quantum computing from 2000 to mid‑2026, highlighting China’s rapid ascent. Chinese labs have set world records with two‑qubit gate fidelities above 99.8%, constant‑time parallel atom rearrangements, and metasurface tweezer arrays holding more than 11,000 atoms. Domestic startups have moved from prototype to commercial‑grade hardware, backed by venture capital and a growing supply chain for lasers, vacuum chambers, lenses and control electronics. The paper notes that while China now matches or exceeds Western peers in raw hardware metrics and array scaling, it still trails U.S. efforts in multi‑round quantum error correction and fault‑tolerant logical operations, which remain the next milestone toward practical quantum advantage.

💡 China’s hardware breakthroughs compress the global race to scalable quantum machines, forcing Western teams to accelerate error‑correction research.

therobotreport.com · Oct 24

Eka Robotics raises $150M to scale its vision-force-action model for robots

Cambridge‑based Eka Robotics announced a $150 million Series A round led by Andreessen Horowitz and F‑Prime, aiming to scale its vision‑force‑action (VFA) model for robotic manipulation. Founded in 2024, the startup uses large‑scale reinforcement learning in simulation to give robots an intuitive grasp of physics, allowing them to pick diverse objects at roughly 1,500 operations per hour and perform tasks such as screwing light bulbs and wiring. Eka claims its VFA approach overcomes the traditional sim‑to‑real gap, delivering both speed and generality needed for daily deployments. The funding also includes existing backers Obvious Ventures, E14 Fund and strategic investors like Samsung Next, supporting broader customer rollouts and further development of the foundation model for dexterous manipulation in manufacturing, logistics, and service sectors.

💡 By finally bridging simulation and real‑world dexterity, Eka could make high‑throughput, adaptable robots viable on factory floors today.

techcrunch.com · Oct 22

Investors break down how founders can raise a Series A today

At TechCrunch Disrupt, investors Peak XV, Index Ventures, and Bessemer warned founders that raising a Series A is now the toughest market seen, citing inflated AI valuations and “tranchopalooza” rounds. Shailendra Singh highlighted the need for intellectual honesty, cautioning against cumulative ARR charts. Partners emphasized a compelling founder story, talent acquisition, and sector focus on defense, robotics, and AI infrastructure. They urged founders to avoid rushed deals, maintain high product‑market fit standards, and pitch audaciously yet realistically.

💡 The panel’s caution signals a looming correction in venture funding, urging founders to prioritize transparency and strategic fit over hype-driven metrics.

techcrunch.com · Oct 22

DeepSeek reportedly raises $15B days after US restrictions

Two days after U.S. federal agencies were ordered to remove DeepSeek’s AI technology, the Hangzhou‑based startup secured roughly $15 billion (≈100 billion yuan) in a new funding round, one of China’s largest. Investors reportedly include CATL and Tencent. The raise follows earlier rounds of $7 billion in June and a $1.5 billion pursuit in July, with a potential IPO slated for next year. DeepSeek plans to expand AI infrastructure and open models for domestic and global markets, intensifying competition among Chinese AI firms.

💡 The funding underscores China’s aggressive push to rival U.S. AI dominance, even as U.S. restrictions tighten. It signals a strategic shift toward domestic AI self‑sufficiency and heightened geopolitical competition.