Israeli Quantum Startup Qedma Attracts $26 Million in Funding, Including Support from IBM

Quantum computers, while incredibly powerful, are quite delicate, facing substantial challenges due to errors that hinder researchers from fully realizing their potential. Unless these obstacles are addressed, revolutionary uses in sectors such as finance, pharmaceuticals, and materials science might remain elusive.

This is why Google emphasized the error correction features of its latest quantum chip, Willow. At the same time, IBM is diligently pursuing the launch of its own “fault-tolerant” quantum computer by 2029, while also collaborating with partners like Qedma, an Israeli startup in which it has invested, as reported exclusively by TechCrunch.

While the emphasis tends to be on quantum hardware, Qedma is known for its advancements in error mitigation software. Its premier product, QESEM (Quantum Error Suppression and Error Mitigation), analyzes noise patterns to reduce specific types of errors during algorithm execution and to correct others during post-processing.

Professor Dorit Aharonov, co-founder and chief scientific officer of Qedma and recognized as a leading figure in quantum research due to her and her father’s remarkable contributions, mentioned that this technology enables quantum circuits to operate correctly up to 1,000 times larger on current hardware, without relying on future error correction improvements at the computational level.

IBM is engaged in both quantum hardware and software development, with partners like French startup Pasqal also innovating in hardware. However, IBM acknowledges the necessity of working with companies focused specifically on software solutions, such as Qedma and the Finnish startup Algorithmiq, backed by Tiger Global, according to Jay Gambetta, IBM’s VP of Quantum, in an interview with TechCrunch.

IBM promotes a collective approach to advancing quantum technology. “By collaborating, I’m hopeful we can soon establish scientifically accepted definitions of quantum advantage, then translate those into tangible applications that will spur industry growth,” Gambetta remarked.

“Quantum advantage” typically signifies demonstrating the superiority of quantum computing over classical systems. However, Gambetta noted that “useful” is a subjective term, likely initially relating more to academic concerns than real-world applications. In this light, reaching consensus that it’s not just another artificial or overly restrictive scenario may take several attempts.

Nonetheless, achieving a quantum computer’s ability to execute a program that a classical computer cannot replicate with comparable accuracy would be transformative for the industry—something Qedma believes is within reach. “It’s possible we could confidently demonstrate the presence of quantum advantage this year,” stated CEO and co-founder Asif Sinay.

Sinay, who holds a Ph.D. in physics, previously worked as a physicist at Magic Leap, a well-funded AR company with a substantial R&D center in Israel. Like many founders of prominent Israeli startups, from Metacafe to Wiz, he is a product of Israel’s elite Talpiot military program, where he was classmates with Lior Litwak.

Litwak now serves as a managing partner at the Israeli VC firm Glilot Capital Partners, which led Qedma’s $26 million Series A funding through its early growth fund, Glilot+, which he manages. This round also saw participation from existing backers like TPY Capital, which contributed to Qedma’s $4.7 million seed funding in 2020, as well as new investors, including Korean Investment Partners and IBM.

Since September of last year, Qedma has been available through IBM’s Qiskit Functions Catalog, enhancing quantum accessibility for users. Sinay pointed out the synergies between the two companies but emphasized that Qedma’s plans remain hardware-agnostic.

The startup has already conducted a demonstration on IonQ’s Aria computer, a publicly traded U.S. firm specializing in trapped ion quantum computing. Additionally, Qedma has an evaluation contract with an undisclosed partner, described by Sinay as “the largest company in the market.” Recently, it also showcased its collaboration with Japan’s RIKEN in merging quantum computing with supercomputers.

The recent joint presentation at Q2B Tokyo included Qedma’s CTO and co-founder, Professor Netanel Lindner. As an associate professor of theoretical physics and leader of a research group at Technion, he expressed optimism that some of his former doctoral students—or those they know—will join Qedma in its recruitment efforts.

According to Sinay, Qedma plans to use funds from its recent financing round to grow its team from around 40 to an expected 50-60 employees. New hires will include researchers and software engineers, along with roles in marketing and sales. “We are selling our software directly to end-users, while our partners handle the hardware.”

For hardware manufacturers like IBM, this software layer addresses the challenge that bankers and chemists—who could benefit from quantum technology—are not specialists in executing circuits amidst noise. Nevertheless, they understand their fields and can define the parameters they wish to set.

“Thus, they should be able to formulate the problem, specify their desired accuracy, and outline acceptable levels of quantum and classical computing usage,” Gambetta conveyed. “They are seeking straightforward options to incorporate into their software; that’s exactly what Qedma, along with some of our other collaborators, is providing.”

Some researchers are already reaping benefits from this through Qiskit Functions or agreements that research institutions have established with Qedma and its industry partners. However, the timeline for large-scale experiments and the realization of quantum advantage for the broader public remains under discussion.

Qedma aims to accelerate this timeline by providing a shortcut. Unlike traditional computer-level error correction that adds overhead and limits scalability, Qedma’s approach does not require additional quantum bits or qubits. “We assert that we can achieve quantum advantage even before reaching the million-qubit threshold,” stated Lindner.

Nonetheless, other companies are approaching this challenge from various angles. For instance, French startup Alice & Bob raised $104 million earlier this year to develop a fault-tolerant quantum computer utilizing “cat qubits,” which are naturally resistant to certain errors, thereby reducing the need for additional qubits.

Yet, Qedma is not dismissive of the competition for more qubits; its team envisions improving performance and aims for both maximum qubit count and quality. However, achieving both concurrently may be difficult, as software-driven error mitigation typically leads to longer runtimes. The ideal solution will depend on the specific task—but first, quantum technology needs to reach those applications.