Novo Holdings makes first direct quantum investment with Sparrow Quantum

Novo Holdings has made its first direct investment in a quantum technology company, participating in Sparrow Quantum’s €21.5 million (DKK 160 millon) series A funding round. The investment, co-led by PensionDanmark and EIFO, also includes strong backing from existing investors 2xN, Liftt, and the European Innovation Council.

This funding will enable Sparrow Quantum, a leading European supplier of photonic quantum chips, to accelerate the development and commercialisation of its quantum chip technology. The company will expand high-volume chip production, advance R&D efforts, and bring next-generation quantum chips to market.

Sparrow Quantum builds on Denmark’s strong legacy of quantum research, at the Niels Bohr Institute in Copenhagen. The Company’s flagship product, Sparrow Core, is an on-chip deterministic single-photon source that is critical for scaling photonic quantum computing by reliably generating photons on demand. With best-in-class efficiency and exceptional stability, Sparrow Core sets the industry benchmark for single-photon sources.

Powered by the Sparrow Core chip, photonic quantum computers can achieve notably faster processing speeds than earlier iterations using probabilistic sources, fuelling critical advancements in generative AI and quantum-optimised machine learning. These developments promise unprecedented scalability and real-world applications across multiple sectors.

Jeroen Bakker, Partner, Seed Investments, Novo Holdings, said:
“We are pleased to announce our first direct investment in the quantum sector with Sparrow Quantum. Photonic quantum technology holds significant promise for the future of quantum computing, and Sparrow Quantum’s approach has the potential to play a critical role in this evolving landscape. Our investment reflects Novo Holdings’ commitment to supporting the quantum ecosystem in Denmark and fostering innovation that can lead to real-world impact.”

Strategic growth areas
Building on a €4.1 million seed investment raised in 2023, this new funding will allow Sparrow Quantum to scale up its production capabilities, establish a full-scale manufacturing line for photonic quantum chips, and meet increasing market demand. The company will also intensify its research and development efforts, particularly in the development of entangled photon sources, which are essential for unlocking the full potential of quantum technologies. Additionally, the investment will support the expansion of Sparrow Quantum’s technical team to accelerate product development and bring new quantum solutions to market.

Kurt Stokbro, CEO of Sparrow Quantum, said:
“This investment is a testament to Denmark and Europe’s ability to lead in quantum technology. With strong backing from visionary investors, we are ready to unlock quantum breakthroughs that benefit society and the global economy.”

Peter Lodahl, founder and CQO of Sparrow Quantum, added:
“With this investment, we can truly intensify our efforts to bring quantum technology from the lab to the market. The funding enables us to scale up in three critical areas: expanding our team with more technical specialists, accelerating the development of our chip, and establishing a professional production line. These steps are essential for industrialising our photonic quantum chips and ensuring we can deliver stable, advanced solutions to the market.”

Novo Holdings’ commitment to quantum technology
Novo Holdings’ investment in Sparrow Quantum follows the announcement last year of a DKK 1.4 billion commitment to the quantum sector. The investment also builds on Novo Holdings’ recent participation in Quantonation’ s quantum fund Quantonation II further strengthening its support for emerging quantum technologies.

The Quantum Investments Team at Novo Holdings focuses on quantum computing, sensing, and algorithms – all areas that have relevant applications within human and planetary health – by making direct investments in quantum technologies while also addressing the broader quantum technology landscape through fund investments.

Geographically, Denmark has been identified as a promising quantum technology hub, building on a strong momentum and a heritage dating back to Niels Bohr. However, the investment mandate is global, so although Denmark is the centre of gravity, Novo Holdings also invests beyond the Nordics.

With the investments in Sparrow Quantum and Quantonation, Novo Holdings contributes to the development of Denmark’s world-class quantum ecosystem, supporting the advancement of transformative technologies with long-term potential.

What is photonic quantum technology?
Quantum physics has opened the door to a new technological era, enabling the development of extremely powerful computers – known as quantum computers – and the creation of communication systems that are entirely secure against hacking.

In quantum computers, classical bits are replaced by quantum bits, or qubits. While a classical bit is binary and can only be either 0 or 1, a qubit can exist in a so-called superposition – a state where it holds both possibilities at once until it is measured. This unique property allows quantum computers to solve certain types of problems far faster than even the most advanced supercomputers today.

Photonic quantum technology distinguishes itself from other quantum platforms by using light – photons – instead of electrons or atoms. This provides several advantages: these systems can operate at room temperature, they are highly resistant to noise, and they can be integrated into microchips – similar to the technology already used in modern electronics. This makes them scalable, stable, and easier to deploy in real-world applications.

A key component of this technology is the deterministic single-photon source, which emits precisely one photon at a time with high accuracy. This is essential to ensuring that quantum systems operate stably and reliably. The photons are processed through specially designed photonic chips, where light is controlled and manipulated – enabling quantum computations or secure communication that cannot be intercepted by unauthorised parties.

About Sparrow Quantum
Sparrow Quantum is a spin-out from a powerhouse of innovation – Professor Peter Lodahl’s research group at the Niels Bohr Institute. With 25+ years of groundbreaking research and nearly a decade of engineering expertise, we are dedicated to advancing the frontier of high-quality photon generation for quantum technologies. We specialize in light-matter interfaces – the essential building blocks for scaling optical quantum technologies. At the core of our innovation is our on-chip deterministic single-photon source, a breakthrough technology that sets industry benchmarks and is trusted by quantum technology leaders worldwide.

By delivering high-purity, high-efficiency photons, Sparrow Quantum empowers its partners and customers to push the boundaries of quantum computing and secure communication, transforming the immense potential of quantum technology into real-world innovation and impact.

Learn more at www.sparrowquantum.com

About Novo Holdings A/S
Novo Holdings is a holding and investment company that is responsible for managing the assets and the wealth of the Novo Nordisk Foundation. The purpose of Novo Holdings is to improve people’s health and the sustainability of society and the planet by generating attractive long-term returns on the assets of the Novo Nordisk Foundation. Wholly owned by the Novo Nordisk Foundation, Novo Holdings is the controlling shareholder of Novo Nordisk A/S and Novonesis A/S (Novozymes A/S) and manages an investment portfolio with a long-term return perspective. In addition to managing a broad portfolio of equities, bonds, real estate, infrastructure and private equity assets, Novo Holdings is a world-leading life sciences investor. Through its Seed, Venture, Growth, Asia, Planetary Health and Principal Investments teams, Novo Holdings invests in life science companies at all stages of development. As of year-end 2024, Novo Holdings had total assets of EUR 142 billion. www.novoholdings.dk