Terra Quantum

Terra Quantum operates an enterprise licensing model: customers pay for access to its quantum algorithms and hybrid quantum-classical software under multi-year contracts. The company sells optimization, simulation, and cryptography solutions directly to large corporate R&D and IT departments — its disclosed partners include HSBC, Aramco, and Volkswagen. Revenue is recognized upon license delivery and across contract terms, typically structured as upfront fees plus annual maintenance or support retainers. The model's economics are typical for enterprise software: high gross margins on the software itself once the algorithms are developed, with the principal variable cost being the quantum and classical compute resources consumed during development and client delivery. The company subsidizes heavy R&D investment — $75M raised to date — against the expectation of long-duration, high-value license deals with a small number of large accounts. Scaling requires winning additional enterprise logos rather than growing per-customer usage, which keeps sales cycles long but unit economics favorable per deal closed.