Welcome to Quantum Valley

How quantum fuels economic growth 

From Mike Lazaridis’s initial multimillion-dollar contributions to consistent support from federal and provincial governments, private investors and philanthropists, Waterloo has attracted more than $1.5B in quantum-related investments.  

Few places in the world have bet on quantum like Waterloo, and it’s paying off. These investments have helped propel Waterloo into the international spotlight. 

Much of this success can be attributed to the phenomenal work being done at IQC and Perimeter.  

• IQC has played a leading role in advancing quantum information science at the highest level, while also bridging the gap between research and commercialization. 

• PI has pushed the boundaries of fundamental quantum research, strengthening Waterloo’s research community and helping the region become a global destination for quantum talent. 

Beyond their research contributions, these institutions have continually attracted top-tier global talent.  

IQC alone has over 300 researchers working on quantum technologies, while PI has drawn world-class faculty, postdoctoral researchers and students from across the globe. This steady talent pipeline helps drive job creation, industry partnerships and startup formation, reinforcing Waterloo’s status as a global quantum hub. 

The impact of these investments, though, has stretched far beyond research and talent attraction. They’ve helped create highly skilled jobs in physics, engineering and computer science, with many researchers transitioning into industry roles or launching their own startups.  

Some of the quantum startups born in Waterloo include: 

• Open Quantum Design: A non-profit startup building the world’s first open-source full–stack quantum computer. 

• EvolutionQ: A quantum-safe cybersecurity company helping organizations prepare for the post-quantum era. 

• High Q Technologies: Developing quantum-enabled scientific instruments for biophysical and chemical analysis. 

• QEYnet: Building the world’s first global quantum key distribution network, enabling ultra-secure communication. 

• SoftwareQ Inc: Developing the software needed to correctly operate quantum platforms like reliable quantum compilers, optimizers and simulators. 

Funding the future of quantum

According to the National Research Council of Canada, the quantum sector could become a $139B industry in Canada, creating more than 200,000 jobs and generating $42B in returns by 2045, potentially contributing to 3% of Canada’s GDP. But reaching that potential will require sustained funding and long-term commitment. 

In January 2023, the Government of Canada launched the National Quantum Strategy (NQS) with a $360M investment to strengthen Canada’s global leadership in quantum innovation. 

With a focus on quantum computing, communication networks and sensing technologies, the strategy aims to translate cutting-edge research into commercial applications, develop top talent and establish Canada as a world leader in the global quantum economy. 

Waterloo’s leadership in quantum research and commercialization has made it a focal point for national investment. Recent funding highlights include: 

• January 2024: Ontario makes a $14.9M investment to support a project by Quantum Valley Ideas Lab (QVIL) 

• February 2024: FedDev Ontario announces $17.2M in funding to support 12 quantum projects and create 150 jobs in Southern Ontario, including Waterloo 

• June 2024: Government of Canada invests $18.4M in quantum research at IQC Canada Inc. 

By continually funding research, commercialization and talent development in Waterloo, the government is not only demonstrating its confidence in the region’s potential but also betting on the region to drive Canada’s broader quantum ambitions. 

How can your company join in?

As Waterloo’s quantum industry grows, so do the opportunities for companies and investors to get involved. The good news is that there are multiple ways to establish a foothold in this ecosystem, and we’re here to help.  

Here are three ways you can get in on the action: 

1. Set up a research hub in Waterloo

One of the most effective ways to enter the quantum space is by establishing a small, focused research outpost in Waterloo. This approach gives your company access to a robust ecosystem of talent, facilities and partnerships, without the need for full-scale expansion.  

A small team of researchers can collaborate with leading institutions like PI and IQC, access state-of-the-art quantum labs and scout talent from our universities and colleges.  

Establishing a presence in Waterloo also opens the doors to valuable funding opportunities. Programs like the SR&ED Tax Incentive Program (up to 35% tax credit) and Alliance Quantum Grants (ranging from $50,000 to $500,000 per year) can offset R&D costs and accelerate your work. 

For companies ready to take the next step, Waterloo EDC can provide guidance on navigating the ecosystem from securing office space to connecting with key research partners.  

We’ve already helped develop R&D offices for multiple companies such as Bosch, Turntide Technologies and Lincoln Electric, helping them tap into local expertise, access world-class facilities and integrate into Canada’s innovation network. 

2. Partner with research institutions

Collaborating with research leaders like IQC and PI is another effective entry point into Waterloo’s quantum ecosystem. 

These partnerships can take many forms, from funding specific research initiatives to collaborating on applied projects that bridge the gap between academic breakthroughs and real-world business applications. 

Sponsoring research in areas relevant to your industry, whether that be quantum cryptography, optimization or communication, can provide early access to new discoveries, the opportunity to shape research directions and, in some cases, priority rights to commercialize emerging technologies.  

Unlike conventional R&D models that require building in-house quantum expertise from the ground up, these collaborations allow businesses to leverage existing knowledge and infrastructure. 

3. Acquire or fund a startup

For larger companies, acquiring or funding a startup offers a fast-track into the quantum sector. 

Many Waterloo-based quantum startups, often consisting of less than 10 researchers, are working on cutting-edge quantum innovations but lack the funding and resources needed to scale. By acquiring a startup, your company can bring quantum expertise in-house while shaping the startup’s research to align with your business objectives. 

Funding a startup, on the other hand, allows companies to nurture and guide quantum innovation without high upfront risk. This can be done through capital investments, strategic partnerships and incubator programs that provide startups with the resources and business mentorship they need to scale.  

In return, your company gains access to emerging quantum technologies and a competitive edge in a rapidly developing field.

Ready to explore quantum opportunities in Waterloo? 

Like transistors and AI, quantum technology is changing the game, and Waterloo is already in the lead.   

As the industry evolves, now is the time to explore, invest and innovate. Waterloo offers one of the world’s most advanced quantum ecosystems, and we’re here to help you tap into it.  

Our team can connect you with the right people, funding programs and research partners to help your company succeed in Quantum valley, and our services are completely free.