Nu Quantum is the category-creator of a new segment of the quantum computing stack - the networking layer. The inevitable need to network to scale a QC system offers a prize to a credible first-mover: to occupy a strong central position in the stack that is cleanly demarcated and defensible. By combining 3 separate disciplines and working from photon-collection with our QPIs to QEC - Nu Quantum has the possibility to own and gate-keep this crucial enabling technology.

In this page, we give an overview of our commercial strategy, including:

• Our commercial vision and proposition
• Product roadmap for Series A and beyond
• Go-to-Market strategy over the next 5 and 10 years
• Business models for delivering Fault-Tolerant QC via Networking
• Product starting points, including our current contracts
• Commercial opportunities from component and sub-system development
• Optionality of exit strategies and liquidity events in <5, <10 years

Commercial vision

Like in classical computing, the transition to networked & distributed quantum computing is inevitable given the hard limit on monolithic scaling. This transition will also bring about an increase in the maturity of the ecosystem, from an R&D paradigm to a Commercial paradigm. In the current R&D paradigm, QPUs are scaled up inefficiently, and a software layer is designed on top of it, custom to its particular architecture and qubit kind. This in terms slows down innovation in the software layers of the industry. The shift to commercial QC via a horizontalisation of the computing stack will be enabled by the introduction of the networking layer, which enables modular and efficient scaling of QPUs from different vendors.

The network, weaving together QPUs to deliver an Entanglement Fabric, also acts as an ‘abstraction’ or ‘virtualisation’ layer between the qubits and the software. This has the critical implication that a qubit-agnostic software compiler can be built atop the network API. We can draw analogies with the evolution of classical networking to understand the significance of this new networked stack to scaling both hardware and software towards commercial applications.

We draw a further parallel with the classical industry to understand the potential size of the quantum networking market. In classical datacenters, networking and storage systems account for 40% of the Capex spent on IT. Furthermore, classical datacenter networking is a high margin, profitable business due to the fact that there is scarcity of solutions (only two leading players, Cisco and Arista), and that the high-complexity of the solutions enables high defensibility. Similar market dynamics will appear in quantum networking - where Nu Quantum is the sole provider with a full solution today; one which is also highly defensible.

Nu Quantum has partnered with the leading analyst in the quantum industry, GQI, to develop a model of the quantum computing value chain. GQI predicts that the Total Addressable Market for Nu Quantum will be $44BN by 2040. Please see the page "Nu Quantum TAM" for further details.

Nu Quantum’s technology will usher in the era of commercial quantum computing at scale - unlocking continuous modular scaling to thousands of logical qubits and tackling transformational industrial problems is possible. We predict this commercial quantum era will begin in 2028-2029 - what we call ‘Market Take-off’.

In the commercial era, Nu Quantum will be the leading Quantum Computer Networking player. We will sell our networking infrastructure to Cloud companies, Hyperscalers, End Users and Governments, who will integrate it together with QPUs from a range of available vendors, building Commercial Quantum Datacentres. The networking infrastructure (Entanglement Fabric) will account for a sizeable (circa 40%) of each system, and will command high margins. Nu Quantum’s business will be extremely valuable and profitable, accessible IPO opportunities and being an obvious target for acquisition by Datacentre companies and Hyperscalers.

Over the next four years, we will build a robust business: the leading voice in the sector with the highest number of commercial partnerships, building enough revenues to reach break-even in 2029-2030, and ready to scale up the business at market take-off.

We are already establishing partnerships with the leading QPU companies in the world, integrating our networking technology with their QPU technology (e.g. our partnership with Infleqtion). During the next four years, this will enable the sale of intermediate Distributed Quantum Computing systems, as a precursor of Commercial Quantum Datacenter scale systems. In parallel, we will productise and sell our Quantum Networking Testbeds to Governments, using our own Ion Trap technology - an early example of this being our contract IDRA (with UK Government).

Our go-to-market over the next 4 years also includes a range of commercial and product activities carefully aimed to successfully navigate the quantum computing industry as it develops, such that Nu Quantum has the highest chances of extraordinary success whichever way the industry evolves (e.g. no matter which kind of qubit ‘wins’) - by exploiting our privileged position in the stack, the fantastic range of routes-to-income we possess, and the commercial maturity and agility we have already demonstrated as a company:

• Acquire Grants and funded projects that strongly support and align with roadmap towards enabling FT-QC (i.e. fit projects to roadmap not vice-versa)
• Pursue parallel tracks of breakthrough science & engineering with increasingly mature, reliable and consumable Product deployments (Product track can consume and manifest new tech from science track)
• Sell large (£5m - £20m) R&D contracts that deliver proof of state-of-the-art performance of end-end network.
• Sell upgradable prototype Products (productised version of R&D technology) for ~£10-35m
• Maintain commercial flexibility in relation to Qubit suppliers - I.e. be prepared to respond to bids contracts in partnership with qubit vendor (3rd party is system integrator) and be prepared to Lead / Prime contract and subcontract qubit supply.
• Expand Commercial Quantum Datacentre Alliance (Cisco + 5) into broad Quantum Networking Special Interest Group to promote e.g. standardisation
• Pursue ‘full network stack’ path primarily [QPI + QNU + DistQEC] but be alert and agile to exploitation and partnerships with individual pieces - ‘optionality’.

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Product Roadmap

Nu Quantum has a Product roadmap in place to deliver three generations of it's Qubit-Photon Interface product Rosetta, and of its Quantum Networking Unit Medusa.We have now overcome all ‘scientific risks’. At each generation going forward, we overcome certain engineering technology challenges. Each product generation enables higher product volumes; the ability to interconnect a higher number of QPUs; with higher networking performance. Gen1 and Gen2 enable larger NISQ-era Distributed Quantum Processors. At Gen3, we enable Fault Tolerant networking of QPUs, which enables the use of our Distributed Quantum Error Correction offering, delivering efficient 100:1 Physical to Logical Qubit ratios (10x better than current monolithic architectures). Our roadmap, when put in context alongside some of the leading QPU roadmaps in the industry - e.g. Quantinuum’s roadmap - immediately shows the power of networking: a multiplicative factor which can dramatically accelerate the path to value.

Go-to-Market Strategy

An outline of our revenue model can be found in our Finance>Revenue Model page. You will be able to access detailed revenue and financial models in our post-NDA dataroom.

The next 5 years: 2025-2029

Our ability to bring in income via at least 2 different routes-to-market over the next 4-5 years enables predictable revenues which mature from contract revenues within the Series A period (2025-2027) to product revenues during our Series B period (2027+).

The optionality comes from two income routes:

• Intermediate-Scale Distributed Quantum Computers via partnerships with QPU companies
• Quantum Networking Testbeds via in-house ion trap technology

Intermediate-Scale Distributed Quantum Computers

The market for intermediate scale quantum computers continues to grow - with Governments, Cloud companies and End-Users procuring and purchasing these systems for R&D purposes all over the world.

Quantum Computing companies are in a constant race with each other to access these commercial opportunities. The rate at which they can deliver larger systems is critical. QPU companies who partner with Nu Quantum and integrate quantum networking technologies will be able to offer Distributed Quantum Computing systems boasting a multiple on the number of qubits available, faster.

Nu Quantum expects to bring in revenues for the sale of quantum networking infrastructure to deliver intermediate Distributed Quantum Computers. These revenues will come either from the sale to QPU companies who will sell to the ultimate Customer (e.g. Government), or directly from the Customer in the case of a co-sale. These early models will continue to develop as the industry matures (see next Section: Networking to deliver Fault Tolerant Quantum Computers).

Nu Quantum already partners with 5 QPU companies (learn more about our partnerships here). Within Series A, we will expand these partnerships - some partnerships will entail hardware development and some will be commercial relationships.

The route to market with QPU companies is in two steps:

1. Integration of QPU with Networking technology (2025, 2026)
2. Sale of Distributed Quantum Computers (2027+)

Quantum Networking Testbeds

Quantum networking underpins scalable quantum computing, communications and sensing, and as such. Quantum Networking Testbeds, allowing users to run real networking protocols of increasing complexity, and get familiar or skill up on the deployment of next-generation networks, will be highly sought-after by Governments globally, as well as by other end-users such as Telecommunication companies, Datacenter companies and larger QPU companies.

Nu Quantum will develop and commercialise Quantum Networking Testbeds with increasing number of connected nodes, and a modest number of qubits per node (1-20 qubits per node), utilising Nu Quantum’s in-house ion trap QPU technology.

Nu Quantum is, to our knowledge the only company world-wide with the capabilities to develop and successfully deliver such scalable and performant room temperature quantum networking testbeds.

The IDRA Project is the first won example of this - the UK Government seeks to acquire competitive advantage on quantum networking and thus is procuring such capability from Nu Quantum over a 4-year period. Nu Quantum has now de-risked the networking subsystems via project IDRA, and a follow-on from IDRA will focus on delivering a Quantum Networking system with 1 qubit per node - first a 2x1 Qubit Network (2026), followed by a 4x1 Qubit Network (2027). This will be followed by a system upgrade to add experimental compute capabilities (adding discrete compute qubits to each node) and is thus referred to as 4xN Quantum Networks (2028).

The expected sales vehicles will be:

1. Series A: Contracts with UK and US Government to deliver 4x1 and 4xN Qubit Network MVP.
2. Series B: 4xN Qubit Network Product sales of the productised systems sold to other Governments (primarily: individual EU states; EU supranational entities, US Gov agencies - e.g. AFRL, DARPA), and end-users.

The 5-to-10 year vision: 2029-2035

Nu Quantum is the global leader on quantum computer networking today. We will further improve our competitive positioning over the Series A and B period, building the best networking products and revenue pipelines via partnerships with QPU companies, Datacenter companies, and End-Users (see how we are building the ecosystem around us here).

We assert that true market take-off will happen when the industry fully shifts from R&D Monolithic systems to Commercial Distributed Systems. The shift is inevitable, like it happened in the classical industry, due to a number of advantages including upgradability, volume pricing, reliability, but most importantly, the ability to build quantum computers with enough logical qubits to be able to access the most transformative and valuable applications .

We believe this shift will happen circa 2028-2029, when QPU and networking technologies are fully integrated and mature to the level required to achieve Fault Tolerance.

Nu Quantum plays a pivotal role in this shift. Series A and B position us perfectly to take a ownership of the central and essential networking segment at market take off. At this point, we expect the Business Model to be similar to the dynamics of classical Datacenters, the quantum equivalent described below.

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Networking to deliver Fault Tolerant Quantum Computing: Business Models

Nu Quantum has route-to-market agility in the Commercial (Fault Tolerant) Era, enabled by the position of networking in the stack and the significance of the Distributed-QEC to highly abstract the physical qubits and offer-up logical qubits

Nu Quantum can either operate as Prime and subcontract provision of qubits for integration with network OR Nu Quantum can Partner with a peer qubit company and jointly offer a solution and a 3rd party would operate as System Integrator (and likely Service Provider). In both cases the logical stack remains the same (networking delivers logical qubits) but the commercial, contractual and service-provision relations change.

Partner model : Nu Quantum partner with qubit provider to make joint offer. Partnership can bid (respond to tenders) or actively offer joint services. The acquiring entity likely functions as System Integrator (SI) and either consumes (Gov, Enterprise) or offers (Cloud provider, Hyperscaler) service. SI likely adds ‘top of stack’ components to give complete QC offering.

Prime model : Nu Quantum contracts for provision of logical qubits and takes responsibility for all services ‘under’ network. Optionally Nu Quantum could partner / acquire ‘top of stack’ components (Algorithm / Compilers etc) and offer full QC service. There is deployment flexibility - could be delivered to market by Cloud vendor (FTQC-aaS) or used On-Prem by Govt or Enterprise entity.

In both cases there are revenue opportunities for Nu Quantum in product sales, S&M and system extensions (scaling systems to increase compute power)

Product Offering

The Entanglement Fabric architecture allows for scaling to an arbitrarily large system size with the addition of more resources in the form of third-party QPUs (with Nu Quantum QPI(s) embedded) and QNUs to connect them together.

Nu Quantum will therefore ultimately offer:

• QNU hardwarewith metrics for Scale (number of QNUs connections) ; Rep Rate & Loss
• Licence terms for software orchestrations capabilities (of system, on QNU hardware platform)
• Licence terms for QPI integrations with QPUs (where QPUs are supplied independently by a third-party

Thus the offerings will tend towards standard IT type T&Cs but reflecting the TRL level possible. Operation in datacenter like environments is expected at this level of maturity.

Model adoption

It’s hard to predict the adoption of models 6+ years into the future. But given that national governments and their agencies are likely first acquirers, and that rich countries mostly have native national qubit-providers, the Partner model may prevail: for Nu Quantum this would mean partnering with strong and credible country local qubit provider. This has strong political advantages and also would allow mature & rich entity to operate as SI (either Gov. or local or international provider). This would also give time for Nu Quantum to mature it’s own SI capabilities.

The Prime model allow more value-capture for Nu Quantum and may be the model that it ultimately aspires to.

The Series A financial model beyond 2029 assumes the partner model. We predict the ASPs of FTQC systems to be in the £200-500M depending on the number of logical qubits instantiated. The model assumes 40% value capture by Nu Quantum. See the section on comparison with the classical datacenter market for data behind these assumptions.

Product Starting Points

In 2024, Nu Quantum has two strong and highly complementary paths that will spawn products of increasing maturity.

1. Advancing State-of-the-Art performance: The current IDRA project explicitly is about the addressing the hard science and engineering challenges to bring order-of-magnitude improvements in overall Rate and Fidelity of remote entanglement. Follow-on projects and grants will continue this path.
2. Productisation and modularisation: The current LYRA project is explicitly about pursuing a path towards the industrialisation of the core ‘QNU’ aspects of the system; to improve robustness and resilience of services. Follow-on projects and expected commissioning-of-systems will continue this path.

With these two tracks,  Nu Quantum intends to take capability from the State-of-Art path and manifest it progressively within the Productisation path.As a concrete example - the initial LYRA project prototype-product uses ‘commercial off the shelf’ (’COTS’) components to form the ‘entangler’ - e.g. discrete optical switches and detectors.By consciously ‘modularising’ the system, this aspect of the solution could be upgraded with a compatible but higher performing (scale, rate, fidelity) sub-system that feature e.g. ‘PIC’ technology from the State-of-the-Art track.

Component and Sub-System Opportunities

In addition to the System Level models above there are opportunities for independent sale or licence of some pieces of technology. These might include : QPI to QC vendor; QNU to QC vendor or System Integrator; licences to patented techniques e.g. Entanglements scheme;  QEC techniques or implementations etc.

None of these opportunities are included in Series A financial model - they are opportunistic and would be considered on $ value vs. roadmap alignment vs. market impact (i.e. partner and competitive landscape).

Exit Strategy

Nu Quantum will unlock different exit opportunities as we progress on our technology, product and commercial roadmap. We see three likely exit strategies described in the diagram below.