Quantum Startups’ Stock Market Dreams Are Decohering

  • 📰 WIREDBusiness
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 68%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

A shortcut to going public, called a SPAC, helped early-stage tech companies raise money. Now some are suffering slumps.

is a particularly precarious investment field. The technology, meant to accelerate computer processing by harnessing quantum mechanics to solve complex problems, will likely not be widely useful for years. Standards in pricing and business practices have yet to be solidified. And although companies such asare experimenting with quantum computing, products and demand are not yet well-established.

“In some sense, SPACs are ideal for a company that has huge potential but is going to take some time to mature,” D-Wave CEO Alan Baratz toldabout its merger in August 2022. “With a SPAC, you’re able to tap into the funding sources in the public markets to accelerate your growth and do it based on the future potential.

Companies are standing by the SPAC paths they took, and some have significant reserves. Peter Chapman, president and CEO of IonQ, says the company merged with a SPAC to raise the “substantial” amount of capital it needed. The companyin September it had $556 million in cash and investments and losses of $30 million for the year to date.

“IonQ is making outstanding advancements at a time when other companies in our field are slowing down,” Chapman told WIRED in an email. The company is still hiring for dozens of, has worked with with Dell and GE, and has enough cash to keep moving ahead, Chapman says. “Based on our achievements to date, we continue to believe that the money we raised last year will fund IonQ for the foreseeable future.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 68. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Planet Labs Finance Chief Says SPAC IPO Was Key to Recent GrowthThe Google-backed satellite-imaging company recently raised its revenue expectations for the fiscal year, which ends this month.
Source: WSJ - 🏆 98. / 63 Read more »