Cybersecurity experts predict that Q-day is coming when a fully functional quantum computer can break current encryption within seconds, leaving sensitive data unprotected against hackers and espionage. Experts predict this will happen in the next three to five years.”
This could mean that passwords become useless and digital signatures no longer work. Every online banking transaction that relies on RSA or ECC encryption would be vulnerable. Digital signatures could be forged, enabling massive fraud and theft. Encrypted emails, chat messages, cloud storage, and VPNs would be exposed. Further, intelligence agencies’ encrypted communications, military strategies, and classified files could be accessed, leading to geopolitical instability.
Last week, Microsoft said that powerful quantum computers are just years, not decades, away, underscoring the urgent need to protect critical infrastructure from quantum threats.
Today, Quantum Industries (QI), a global leader in quantum secure communications for critical infrastructure, announced it has raised €10 million in Seed funding.
Founded in 2023 and based in Vienna, startup QI harnesses over 40 years of pioneering research of its founders to tackle one of the most pressing technological challenges of our time: securing global communications against the looming threat of quantum computing which will break today’s encryption systems in seconds leaving sensitive data unprotected against hackers and espionage.
I spoke to QI’s co-CEOs, Rupert Ursin and Felix Tiefenbach to learn more.
From academic to real-world applications
The duo worked together as postdocs at a Nobel Prize-winning lab in Vienna. It set world records in quantum communication, including transmitting data between the Canary Islands. The experiment not only broke distance records but also provided a foundation for future quantum information networks, secure communication systems, and the development of quantum computers.
During the 20 years Ursin spent in academia, working on quantum communications, he became the deputy director at the Austrian Academy of Sciences.
He realised:
“At some point, it became clear that the technology we were developing was ready for real-world applications, so I left my permanent position to become a full-time entrepreneur.
Unlike in our academic days, where it was more of a curiosity, it’s now a critical security concern.”
Tiefenbacher left academia in 2008 to start a solar tech company, which he ran for 15 years. Ursin convinced him to return to physics and launch Quantum Industries.
Critical industries are waking up to the threat of quantum
Quantum cybersecurity isn’t yet part of daily global infrastructure, but major companies—especially CIOs, CEOs, and CSOs—are aware of its significance.
Additionally, intelligence agencies are already storing encrypted data in anticipation of decrypting it once quantum computers become available.
According to Ursin, this “store now, decrypt later” strategy means that sensitive information being transmitted today is at risk in the near future.
QI’s Quantum Key Distribution secures communications with physics
QI has developed proprietary Quantum Key Distribution (eQKD) technology is based on the principle of quantum entanglement – a revolutionary approach to cybersecurity that provides encryption via a law of physics which is inherently impossible to hack.
Currently, most encryption on classical computing relies on software-generated keys that are rarely updated.
QI’s proprietary technology generates encryption keys simultaneously and symmetrically, making them uniquely capable of securing large-scale networks.
This allows QI’s technology to deliver the world’s most advanced secure communication solutions, offering ultra-high key rates and long-distance coverage (up to 350 km), setting it apart from its competitors.
QIs solution is hardware-based: a 19-inch data centre device that generates quantum-secure encryption keys.
Two such devices, installed in separate data centres, generate identical keys that integrate seamlessly into existing encryption systems. We use existing fibre-optic infrastructure, making deployment efficient and cost-effective.
Geopolitical shifts drive demand for European quantum security solutions
Quantum cybersecurity is a rapidly evolving area — arguably, QI’s biggest competitor is a publicly traded Chinese company founded by one of Ursin’s former PhD students.
However, while Chinese quantum security products might have dominated the market a decade ago due to cost advantages, much like Huawei’s telecom infrastructure, Ursin said, “current geopolitical shifts mean that Western nations now seek local quantum security solutions, which benefits us.”
QI makes all its components locally in Austria.
“This is a European scientific achievement, and we want to keep it here. While many startups might be tempted to move to the US, we believe the best talent for developing this technology is in Europe.
That’s why we’re committed to building our company and our production facilities here.”
Further, while several European startups compete in this space, QI’s unique selling point is long-distance quantum communication. Most competitors focus on short-range solutions, which are less practical for large-scale networks like those in Europe or Australia.
In response to the funding, Dr Ursin added:
“We have harnessed more than 40 years of Nobel Prize-winning scientific research to set a new benchmark for quantum secure communications.
From day one, our goal has been to establish a global leader in this field. With this investment, we now have the resources and the backing to realise that vision on a global scale.
It’s a vision our investors share, and together, we aim to establish Quantum Industries as a key player in securing the future of global communications for critical infrastructure.”
The financing round was led by Sparring Capital Partners, Findus Ventures, alongside KGAL. Dr Wolfgang Bernhard, former Board Member of Daimler AG, CEO of Daimler Trucks and Supervisory Board Member of Andritz AG and AMAG will join the Board of QI for Sparring Capital along with other industry and investment professionals.
According to Michael Steiner, CEO of Sparring Capital Partners:
“The potential of quantum computing requires new and much higher standards in cybersecurity and encryption. Quantum Industries effectively addresses this emerging need, and we are proud to support them.“
Christian Federspiel, founder and CEO of Findus Ventures, shared:
“Quantum technology will be a decisive force over the following decades and remains one of few areas of technology in which Europe is globally leading.
QI and its world-class team are the prime example in this context as they have developed and are commercialising the most potent quantum key distribution system globally available.”
QI is already generating significant revenue by selling hardware components to the scientific community. It is a key supplier of the European Quantum Communication Infrastructure Programme (EuroQCI) and is working with national and international critical infrastructure providers to deliver the foundations of the most secure communication in the world. This has already resulted in €1.8 million of booked sales in QI’s second year of operation.
Tiefenbacher shared:
“Our entangled photon sources, which operate at world-record efficiency, are in demand by research institutions.”
After winning a public tender, QI just shipped its first full quantum key distribution (QKD) system to Spain.
“This marks a major milestone, as we delivered a fully operational product within just 1.5 years of launching technical operations.
The enthusiasm for our technology is incredible—every potential customer we’ve spoken to recognises its value and wants to learn more. With our first customer projects already underway, this marks a significant step towards commercialisation.”
The company is also patenting key technologies to make its devices more robust and easier to deploy.
Tiefenbacher asserts:
“Eventually, our entangled photon sources will be so compact that we can ship them in an envelope and have them work immediately upon connection.”
Lead image: Freepik.