The buzz around quantum computing has been growing steadily, but here’s what many investors are missing: its immediate impact on financial markets isn’t just about the technology itself – it’s about who’s positioning for it right now.

Why It Matters Now

While working with our tech portfolio companies at Horizon Capital, I’ve noticed an interesting trend. Traditional tech giants aren’t the only ones making quantum moves. Several mid-cap companies, particularly in the financial technology sector, are quietly building quantum-ready infrastructure.

Follow the Money Trail

Three key developments caught my attention:

• Major clearing houses are investing heavily in quantum-resistant security
• Trading platforms are upgrading their systems for quantum compatibility
• Financial data companies are developing quantum-optimized algorithms

The Hidden Opportunity

Here’s what’s interesting: the market is primarily focused on quantum hardware companies, while overlooking the software and infrastructure players. This reminds me of the early cloud computing days – the real winners weren’t just the infrastructure providers, but the companies that built the essential layers on top.

My Take

The quantum revolution in finance won’t happen overnight, but the groundwork is being laid now. For investors, the opportunity lies in identifying companies building the bridge between current financial systems and quantum capabilities.

I’ll be watching this space closely, particularly the intersection of quantum-ready cybersecurity and financial infrastructure. More on specific subsectors to watch in my next post.