Due-Diligence Filters IWC Uses to Find "Value-for-Money" Quantum + AI Deals

Quantum computing and AI are no longer science projects confined to university labs. As these technologies converge and move toward commercial deployment, investors face a critical challenge: how do you identify "value-for-money" deals in a landscape saturated with hype, inflated valuations, and long-horizon bets?

At the World Quantum Summit 2025, IWC Management's CEO Ken Chew moderated a panel discussion with top-tier venture investors, exploring the frameworks that guide capital allocation in deep tech. The conversation revealed three sharp due-diligence filters that separate genuine opportunities from expensive science experiments.

Filter 1: Commercialization Clarity Over Scientific Novelty

The first filter is the most important—and the one most founders fail.

The question IWC asks: "Does this team have a clear path from lab to market, or are they still operating in pure R&D mode?"

Why It Matters

Quantum and AI deals often come with impressive technical credentials: peer-reviewed papers, cutting-edge algorithms, patents pending. But scientific novelty doesn't equal commercial viability. Investors have learned the hard way that brilliant technology without a defined go-to-market strategy is a recipe for capital destruction.

As Ken Chew noted during the summit: "Quantum is no longer the future—it's today's most powerful strategic edge and already seeing some real applications. The confluence of quantum and AI and their cross-synergies are powerful, and those who integrate it into their AI stack early will potentially define the competitive landscape of the next decade."

The emphasis is on "real applications." Not theoretical. Not aspirational. Real.

How IWC Applies This Filter

When evaluating quantum and AI deals, IWC looks for evidence of commercialization clarity:

• Pilot customers: Has the company secured real-world testing agreements with enterprise clients, government agencies, or industry partners?

• Revenue milestones: Are there defined, achievable revenue targets within 12–24 months—or is the entire business model contingent on breakthroughs 5+ years away?

• Go-to-market strategy: Can the founder articulate which industries they're targeting first (finance, pharma, logistics, cybersecurity) and why those segments are ready to adopt?

If a founder can't answer these questions with specificity, it's a red flag—no matter how strong the science is.

The Walk-Away Moment

One of the sharpest questions posed during the panel: "What makes you walk away from a deal, even if the science is strong?"

The answer: when commercialization clarity is missing. If a team is still trying to "figure out" their customer, their pricing model, or their competitive advantage after years of operation, they're not ready for venture capital.

Filter 2: Hype Detection—Separating Signal from Noise

The second filter is about cutting through the quantum hype cycle.

The question IWC asks: "What do you see as hype versus genuine signals of progress?"

The Hype Problem in Quantum + AI

Quantum computing has been "five years away" for two decades. AI has cycled through multiple hype waves, from expert systems in the 1980s to deep learning in the 2010s. Now, as quantum and AI converge, the marketing noise has reached deafening levels.

Investors are flooded with pitches claiming:

• "Revolutionary quantum algorithms that will disrupt every industry"

• "AI models enhanced by quantum computing delivering 1000x speedups"

• "The next Google/Microsoft/NVIDIA of quantum"

Most of these claims are overblown. The best investors have developed filters to separate genuine progress from marketing spin.

IWC's Hype Detection Framework

IWC evaluates quantum and AI deals using three key signals:

1. Patents, Partnerships, or Pilot Customers?

Which of these three does the company actually have? And how substantive are they?

• Patents: Does the company hold defensible IP that creates a moat? Or are their patents incremental improvements on existing techniques?

• Partnerships: Are they working with credible industry players (Fortune 500s, government agencies, leading research institutions)? Or are their "partnerships" just MOUs with no commercial commitments?

• Pilot customers: Have they secured paying pilot agreements—or are they still giving away technology for free in hopes of future adoption?

The more concrete the evidence, the less likely the company is selling hype.

2. Benchmarking Against Frameworks Like QCI

The Quantum Capital Index (QCI) provides a structured methodology to assess risk-adjusted returns across different quantum modalities (superconducting, photonic, ion-trap). By comparing a target company's metrics against QCI benchmarks, IWC can quickly identify whether valuations are justified—or inflated by narrative-driven fundraising.

As one panelist asked: "Is the Quantum Capital Index genuinely useful, or just noise?"

The answer: it's useful when applied pragmatically. QCI helps investors avoid overpaying for companies riding the hype wave without delivering real technical differentiation or commercial progress.

3. The "Personal Money Test"

During the summit panel, a provocative question was posed: "If you had to bet your own money—not fund money—on one quantum approach (superconducting, photonic, ion-trap), which would you choose and why?"

This thought experiment reveals conviction. When investors talk about where they'd deploy personal capital, they strip away portfolio theory and narrative-driven hype. They focus on what they genuinely believe will work.

IWC applies this lens internally: "Would we personally invest in this deal if it weren't a fund allocation?" If the answer is no, it's a pass.

Filter 3: Risk-Adjusted Capital Efficiency

The third filter is about capital discipline in a world of long-horizon bets.

The question IWC asks: "What is the burn rate relative to milestones achieved—and does the capital efficiency justify the risk?"

Why Capital Efficiency Matters in Quantum + AI

Quantum hardware companies often require $50M–$100M+ in upfront capital to build infrastructure, hire specialized talent, and scale operations. AI companies can burn through millions on compute costs, data acquisition, and model training.

The challenge: are these companies achieving meaningful milestones commensurate with the capital deployed? Or are they burning cash without demonstrating product-market fit?

How IWC Evaluates Capital Efficiency

IWC looks at:

• Burn rate vs. runway: How long will the current capital last—and what milestones will be achieved before the next fundraise?

• Capital intensity: Does the business model require continuous infusions of capital, or can it achieve cash-flow break-even within a realistic timeframe?

• Milestone progression: Has each funding round delivered meaningful progress (new customers, technical breakthroughs, revenue growth)—or has the company repeatedly missed targets?

For quantum and deep-tech deals with 10–15 year timelines, this filter is especially critical. As one panelist asked: "Do you think VCs should even be in this game, or is this better left to governments and corporates?"

IWC's answer: VCs have a role—but only when investing in companies that can demonstrate capital-efficient progress toward commercial milestones. If a deal requires infinite patience and infinite capital, it's not a venture-backable opportunity.

The Red Line

Another provocative question from the summit: "What's your personal red line—the one thing that makes you reject a deal instantly?"

For IWC, the red line is a founder who can't articulate how they'll achieve revenue with the capital they're raising. If the pitch is "give us $20M and we'll figure it out," it's an immediate pass.

Bringing It All Together: IWC's Investment Philosophy

The three filters—commercialization clarity, hype detection, and capital efficiency—form the backbone of IWC's due-diligence approach in quantum and AI deals.

Here's how they work in practice:

1. Commercialization clarity: Does the team have pilot customers, revenue milestones, and a defined go-to-market strategy? If not, walk away.

2. Hype detection: Are there genuine signals (patents, partnerships, pilots)—or just marketing noise? Use benchmarking tools like QCI to validate claims.

3. Capital efficiency: Is the burn rate justified by milestones achieved? Will the company reach cash-flow break-even, or require endless funding?

These filters help IWC identify "value-for-money" deals—companies that balance scientific ambition with commercial discipline, defensible differentiation with realistic timelines, and bold vision with capital efficiency.

Singapore's Positioning in the Global Quantum + AI Ecosystem

A recurring theme at the World Quantum Summit was Singapore's unique role as a bridge market for deep-tech investments. While the US, Europe, and China dominate quantum R&D, Singapore offers:

• Government co-investment programs that de-risk early-stage ventures

• Access to ASEAN markets hungry for quantum and AI applications in finance, logistics, and cybersecurity

• A regulatory environment that encourages innovation

For IWC, Singapore's positioning creates opportunities to back companies that leverage regional strengths—such as quantum-enhanced AI solutions for supply chain optimization, secure communications, or financial modeling across Southeast Asia.

Final Thoughts: One Piece of Advice for Quantum Investors

At the close of the summit panel, Ken Chew posed a final question: "If you had to give one piece of advice to investors trying to understand frontier tech, what would it be?"

The answer distills IWC's investment philosophy: Investor confidence equals clarity on commercialization.

No matter how exciting the science, no matter how revolutionary the potential, the best quantum and AI investments will come from founders who can articulate:

• Who their customers are

• What problems they're solving

• How they'll reach revenue milestones

• Why their approach is defensible

Frameworks like the Quantum Capital Index help. Filters for hype detection and capital efficiency help. But ultimately, the winning deals are the ones where commercialization clarity cuts through the noise.

About IWC Management IWC Management is a Singapore-based investment firm specializing in deep-tech, quantum computing, and AI-enabled ventures. As a Gold Capital Network Partner at the World Quantum Summit 2025, IWC connects founders and investors to accelerate funding into quantum ventures poised for growth.