My primary association with quantum computing is the 90s sci-fi show Quantum Leap. But here’s what quantum computing refers to, more or less: an emergent sector utilizing the laws of quantum mechanics to solve problems too elaborate for the computers we know. Taking it a step further, quantum mechanics itself is the science dealing with how light and matter behave at a subatomic level, beyond what humans can see. 

I know, I know, why should you care? Well, this was a conference for investors. And, according to the quantum bulls who spoke at the event, the opportunities to invest in the technology, from startups to established companies, are increasing.

“It’s not the sexiest topic in the world, but it’s a $75 million sexy topic,” moderator Dr. Kristin Gilkes, EY Global Innovation Quantum Leader, joked, possibly referring to the U.S. Defense Department’s Quantum Transition Acceleration project.

I heard a couple different numbers throughout the panel about what the possible market opportunity for quantum computing might look like. The one that stuck with me: Michael Biercuk, CEO of Q-CTRL, quoted a Boston Consulting Group figure suggesting that the market for quantum computing by 2035 could be $1.3 trillion. Which naturally leads us to the question, how?

Gilkes, Biercuk, and Ray Harishankar, IBM Fellows at IBM Quantum Safe, ran the audience through a number of use cases for the technology, including DNA sequencing, pharmaceuticals, logistics, and IoT. There are also multiple verticals—there’s quantum computing, yes, but there’s also quantum sensing (which pertains to motion) and quantum advantage (the inflection point where a quantum algorithm is faster than a “classical” computer). 

“There are a whole class of problems waiting to be solved when you have a reasonable quantum computer,” Harishankar told the audience.

The crux of the panel was this: After false-start startups and decades relegated to the ivory tower, these panelists believe quantum computing is ready to step into the limelight.

“The field was driven for many years by academics and national labs, and then the early industry investment came from organizations like IBM, but more recently we’ve seen a change,” said Biercuk onstage. “There was a wave of early quantum technology startups, and many of them have not panned out the way people have hoped. Frankly, that’s changed because it was a very simplistic view.” (In 2023, startups focused on quantum computing snagged almost $1.2 billion, a solid uptick compared to 2022, when the sector raised $800 million, according to Crunchbase data.)

If you, like me, are into history, this might sound a bit like something else—AI, which was long the province of academia and government. (AI research as we know it, for example, began in 1956 at Dartmouth.) 

And, like AI, quantum anything will also have limitations in what it can do relative to expectations.

“Quantum computing isn’t magic pudding,” said Bierchuk.

Before this talk, I didn’t know the phrase “magic pudding,” and didn’t know anything about quantum computing. But both are memorable and seem to merit further investigation.

A poem…Out in the LinkedIn wild, I came across this fun poem posted by Maria Palma of Kindred Capital—but penned anonymously—about the current state of VC. My personal favorite lines: “What do VCs want?/Continue the current jaunt?/Or is 3x better than naught?/A lack of LP liquidity will soon start to haunt.”

See you tomorrow,

Allie Garfinkle
Twitter: @agarfinks
Email: alexandra.garfinkle@fortune.com
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Joe Abrams curated the deals section of today’s newsletter.

VENTURE DEALS

- Alumis, a South San Francisco-based biopharmaceutical company developing oral therapies designed to treat immune-mediated diseases, raised $259 million in Series C funding. Foresite Capital, Samsara BioCapital, and venBio Partners led the round and were joined by Cormorant Asset Management, SR One, Lilly Asia Ventures, Nextech, Ally Bridge Group, and others.  

- Zama, a Paris, France-based open source cryptography company developing blockchain and AI privacy solutions, raised $73 million in Series A funding. Multicoin Capital and Protocol Ventures led the round and were joined by Metaplanet, Blockchange Ventures, VSquared, and Stake Capital.

- DTEX Systems, a Saratoga, Calif.-based insider risk management platform, raised $50 million in Series E funding from CapitalG.

- Todyl, a Denver, Colo.-based security and networking company, raised $50 million in Series B funding. Base10 Partners led the round and was joined by Anthos Capital, Tech Operators, and StoneMill Ventures. 

- Remofirst, a remote-based human resources and employee management platform, raised $25 million in Series A funding. Octopus Ventures led the round and was joined by QED, Mouro Capital, and Counterpart Ventures. 

- Hunch, a Dubai-based social app social polling platform, raised $23 million in Series A funding from Alpha Wave, Hashed, and others. 

- Argyle, a New York City-based provider of direct-source income and employment data, raised $20 million in funding. Rockefeller Asset Management led the round and was joined by Bain Capital Ventures, SignalFire, and Checkr.

- Tava Health, a Salt Lake City, Utah-based provider of electronic medical record and practice management software to therapists, raised $20 million in Series B funding. Catalyst Investors led the round and was joined by Peterson Partners, Toba Capital, SpringTide, and Blue Heron Capital. 

- Betr Holdings, a Miami, Fla.-based sports media and sports gaming platform, raised $15 million in funding. Harmony Partners and 10x Capital led the round and were joined by Fuel Venture Capital, Aliya Capital Partners, and others. 

- Fluent, a London, U.K.-based data analytics platform, raised $7.5 million in seed funding from Hoxton Ventures and Tiferes Ventures.

- MALK Organics, an Austin, Texas-based plant-based milk brand, raised $7 million in funding from Benvolio Group, Rotor Capital, and others.

- Nextron, a Sāo Paulo, Brazil-based platform designed to connect residents and businesses with subscription-based renewable energy, raised $5.3 million in Series A funding. Vox Capital and Copel Ventures led the round and were joined by others.

PRIVATE EQUITY

- Gap Intelligence, a portfolio company of ParkerGale Capital, acquired Competitive Promotion Report, a Marietta, Ga.-based provider of trade pricing, promotions, and product intelligence data. Financial terms were not disclosed. 

- McDanel Advanced Material Technologies, a portfolio company of Artemis, acquired Rayotek Scientific, a San Diego, Calif.-based manufacturer of optical window and mirror systems for the Aerospace, Defense Space, and Semiconductor industries.

OTHER

- Cloudflare (NYSE: NET) acquired Nefeli Networks, a Berkeley, Calif.-based multi-cloud networking startup. Financial terms were not disclosed. 

- Swiftly acquired BYBE, a Columbus, Ohio-based alcohol promotions platform. Financial terms were not disclosed. 

FUNDS + FUNDS OF FUNDS

- Prudence, a New York City-based venture capital firm, raised $80 million for its third fund focused on tech companies real estate, prop tech/construction, and infrastructure spaces.

PEOPLE

- True Wind Capital, a San Francisco-based private equity firm, hired Emily M. Brakebill as partner, head of investor relations. Formerly, she was with HMI Capital Management.