The Challenge
Today, sensitive data is protected by cryptographic algorithms that are effectively impossible for computers to break. Quantum computers, however, can solve these widely used algorithms, potentially exposing large quantities of data. Rapid advances in quantum capability make the timing and scale of the risk difficult to predict. Although quantum-secure algorithms are available, they typically require more processing power and memory than some constrained platforms, such as sensors and embedded systems, can support.
A university-founded deep tech spin-out company had developed a lightweight quantum-secure algorithm designed for these resource-constrained applications. As the next investment round approached, a venture capital fund needed independent evidence that the company’s commercial strategy was focused on the markets with the greatest opportunity for growth on a 5-year time scale, and that the team had a comprehensive view of competitive positioning.
Several strategic questions remained unresolved. Commercial activity was concentrated in one sector that reflected the company’s existing experience and networks. Opportunities across other industries had not been systematically evaluated, and therefore might have been missed. The company believed its technical capabilities offered differentiation, but lacked validation from a broad range of potential customers. Increasing competition within the post-quantum security market added further uncertainty, making it difficult to distinguish genuine competitive threats from marketing claims.
The fund recognised that these questions could not be answered through internal discussions alone. They needed an external perspective from senior technology leaders and decision-makers across multiple industries to make a fully informed decision about the next phase of investment and commercial growth.
The Solution
Outsmart designed an Insider Viewpoints study that assessed the spin-out’s commercial strategy and provided recommendations on next steps. The engagement combined structured market analysis, insights from senior cybersecurity and technology leaders across automotive, banking, insurance, defence, utilities and software , and analysis of the competitive landscape.
Our team began by evaluating every industry sector for potential, scoring them by the importance and urgency of post-quantum security, alignment with the spin-out’s technical strengths, and likely barriers to adoption. This created an objective shortlist of the most commercially attractive sectors.
Outsmart then assembled a bespoke team of specialists with expertise in post-quantum security from our global network, typically at Chief Information Security Officer (CISO) level. The specialist team analysed the opportunity in priority sectors by exploring the urgency of post-quantum adoption, migration strategies, specific use cases, preferred procurement models, key buying factors, willingness to adopt, perceptions of differentiation, and recommended go-to-market approaches. Finally, our team synthesised the insights into concise answers to the fund’s key questions that highlighted the implications for the company’s strategy.
The Value and Impact
The study delivered independent evidence to support a high-stakes investment decision, increasing confidence that the business had a sound strategy.
Similar to other small companies or spin-outs, the team did not have the capacity to run a rapid and thorough validation of their commercial approach with senior leaders across industries. Outsmart’s existing network helped the client access experienced leaders, with the right expertise to answer their questions, within days.
The research reshaped the company’s strategy, broadening its approach to look at low-resource use cases across adjacent sectors, and helped it reframe its commercial positioning. Rather than leading with technical language around specific features, the spin-out repositioned its messaging around key buying factors such as ease of migration.
