Research Meets Industry in Quantum Valley: An Ecosystem Map

Our Quantum Ecosystem Map shows how Waterloo’s quantum ecosystem is built on the connection between four core pillars:

• Research institutions advance quantum science and train talent
• Venture capital and funding for breakthrough science with commercialization potential
• Business ecosystem members develop products and services
• Commercialization and support hubs help startups grow and reach global markets

Wondering how these pieces work together? Let’s explore how companies in Waterloo are rapidly developing quantum solutions for manufacturing, security, healthcare and beyond.

Business ecosystem

Editor’s note: The Waterloo region is made up of three cities and four townships. We’ve included the community where each company is based in parentheses below. Together, we’re known as Waterloo.

Waterloo’s quantum technology ecosystem includes startups, scale-ups and multinationals developing quantum technologies and applications. These companies work on quantum computing, sensing, cryptography and software – moving discoveries from research into real-world use.

Many have spun out of local research institutions or chosen to locate here to access the region’s deep talent pool and investment network.

Key players:

• Anyon Systems (Waterloo) – Develops ready-to-use quantum computing products
• evolutionQ (Waterloo) – Delivers quantum-safe cybersecurity technologies
• HighQ (Waterloo) – Uses quantum computing to enhance protein structure analysis
• ISARA (Waterloo) – Builds quantum-safe cryptography solutions
• Keysight (Kitchener) – Helps organizations test, design and deploy new products

Each company, among many others, contributes uniquely to Waterloo’s quantum economy.

Venture capital and funding

Quantum research and development require long-term investment – and companies in Waterloo can access it through local, national and global sources.

Over the past 20 years, Waterloo’s quantum ecosystem has attracted more than $1.5B in public and private investment. Led from the Waterloo region, the Government of Canada has also committed $360M through its National Quantum Strategy.

Our community is also home to Quantum Valley Investments (QVI), which helps bring quantum technologies to market by investing in early-stage startups and providing strategic guidance.

Research

Waterloo’s quantum research institutions are internationally recognized for advancing quantum technologies – and for training the talent to power them.

Leading institutions include:

• Institute for Quantum Computing (IQC) – One of the world’s top five quantum experimentation research institutes, based at the University of Waterloo
• Perimeter Institute for Theoretical Physics (PI) – the world’s largest research hub devoted to theoretical physics
• Transformative Quantum Technologies (TQT) – Focused on translating quantum research into next-generation technologies
• Quantum NanoFab (QNFCF) – A nanofabrication facility supporting quantum device development

These institutions are fueling Waterloo’s quantum talent pipeline. Researchers from PI and IQC bring deep expertise in quantum theory and applications, while graduates from the University of Waterloo’s renowned math and computer science programs help drive product development and commercialization.

Commercialization and support hubs

Commercialization and support hubs help bring research ideas to life – connecting talent and industry through incubation, acceleration and collaboration. They help quantum startups access funding, mentorship and commercialization pathways.

Key hubs include:

• Velocity – A startup incubator at the University of Waterloo supporting deep tech and quantum ventures
• Quantum Valley Ideas Lab – Focused on turning quantum research into commercial applications
• Communitech – A scale-up support hub that helps high-tech companies grow
• University of Waterloo & David Johnston Research + Technology Park – Provide infrastructure and collaboration space for R&D
• Accelerator Centre – Offers mentorship, programming and funding to help startups scale

The University of Waterloo is a premier university for promoting industry partnerships – for companies looking to tap into Waterloo’s quantum expertise or commercialization opportunities, it’s an excellent first stop.

Spotlight: Open Quantum Design (OQD)

One of the newest additions to Waterloo’s quantum ecosystem is Open Quantum Design (OQD) – a non-profit, open-source foundation building the world’s first open-source, full-stack quantum computer.

Spun out of the Perimeter Institute and Institute for Quantum Computing, OQD is modelled after successful classical computing efforts like the Linux Foundation and RISC-V. Its goal is to lower barriers to entry and create shared prosperity across the quantum sector.

Led by CEO Greg Dick, OQD brings together industry, academia and government in an open environment that supports workforce development and unlocks new possibilities in quantum hardware access, collaboration and innovation.

“We’re in the exact right spot and right country to be doing quantum,” says Dick. “We have good supply chain infrastructure for industries like semiconductors, AI and advanced materials, which will help us scale quantum to give us a Canadian edge.”

Read more about OQD in our recent Q&A.

Collaboration is key

Quantum innovation takes many forms in Waterloo – and so does collaboration.

Within a 5 km (3.1 mile) radius, companies can access research institutions, accelerators, funding and highly skilled talent. This close-knit geography makes collaboration between researchers, founders and investors part of daily business.

That’s what makes Waterloo’s quantum cluster unique: not just the presence of key players, but how they work together. This collaborative spirit accelerates development, reduces barriers and helps quantum companies move from idea to impact – faster.

Why quantum matters for your business

Global businesses in fields like cybersecurity, advanced manufacturing and healthcare are already tapping into Waterloo’s quantum ecosystem to solve complex challenges, explore new applications and hire top talent.

Think of quantum the way many people thought about AI a decade ago – full of potential, still early, but starting to make an impact. Companies that got involved early in AI are now leading the way. The same will likely be true for quantum.

Even if you’re not developing quantum technologies, being close to the research, talent and ideas can help your company stay ahead. In Waterloo, you can access a collaborative network that’s shaping what’s next.