Economy03:00 · 1h ago

Two Israeli Quantum Computing Firms Eye $5 Billion Valuations in Wall Street SPAC Deals

Calcalist

Translated & summarized from Calcalist by baba

Key points

01Two Israeli quantum firms, Quantum Art and Classic, plan Wall Street SPAC listings valued at $2-5 billion each.
02Quantum Art develops a trapped-ion quantum computer and has raised $200 million since 2022.
03Classic creates a quantum computer operating system, with $200 million raised and major tech partnerships.
04SPAC mergers are a popular route for quantum startups to access public markets amid limited revenues.
05Israel ranks fifth globally in quantum investments and leads in quantum startup density.
06Quantum firms aim to raise $200-300 million via SPACs to accelerate development before 2027-2029 breakthroughs.

In this story

People

Tal David, Roy Ozari, Amit Ben-Kish, Nir Minerbi, Amir Naveh, Yehuda Naveh, Tom Livne, Eyal Waldman

OrganizationsQuantum Art, Classic, Entrée Capital, QBeat, Vertex, Stage One, Disruptive, Amity Ventures

PlacesIsrael, Ness Ziona, Wall Street

The story · English

Two Israeli quantum computing companies, Quantum Art and Classic, are in advanced negotiations to go public on Wall Street through mergers with special purpose acquisition companies (SPACs). Each company is expected to be valued between $2 billion and $5 billion. Quantum Art, founded in 2022 and based in Ness Ziona, is developing a full quantum computer based on trapped ion technology and is further along in the process. Classic, established in 2020, creates an operating system for quantum computers and is considering an additional private funding round to boost its valuation before the public offering.

Quantum Art has raised about $200 million to date, including a $140 million round in April 2024, with investors such as Entrée Capital, QBeat, Vertex, and Harel Insurance. Its founders include Dr. Tal David, former head of Israel’s quantum computing program, Prof. Roy Ozari from the Weizmann Institute, and Dr. Amit Ben-Kish. Classic has raised roughly $200 million as well, with investors including AMD, Qualcomm, and IonQ, and partnerships with Nvidia, Microsoft, and AWS. It employs around 100 people, mostly in Israel, and generates tens of millions in revenue from clients like Comcast, BMW, and SoftBank.

The SPAC route has become a popular method for quantum startups to access public markets, with five companies already listed in 2026 and another five in advanced merger talks. The combined market value of these firms is about $70 billion, typically ranging from $1 billion to $3 billion, except for IonQ and Quantinuum, which trade near $20 billion each. Israeli quantum companies have yet to translate their technological leadership into public market success but see SPAC mergers as a way to raise $200-300 million quickly to accelerate development ahead of an expected industry breakthrough between 2027 and 2029.

Israel ranks fifth globally in quantum investment volume and seventh in innovation ecosystem metrics, hosting about 20 quantum startups out of 270 worldwide. These startups have attracted approximately $800 million in funding so far. The country leads in the proportion of quantum startups relative to all new startups, with one in every 300 being quantum-focused compared to one in 2,000 in the U.S. Despite some skepticism around SPACs since the 2021 bubble, regulatory changes have made them a viable path for quantum firms, which often lack significant current revenues and rely on future growth projections for valuation. For example, Rigetti, an early SPAC-listed quantum company, is valued at about $7 billion despite annual revenues of only $7 million.

Read the original at Calcalist