Recognizing the potential to revolutionize fields beyond traditional tech, the Danish investment firm is focusing its efforts on quantum technologies directly impacting human and planetary health, from advanced algorithms to innovative sensing capabilities. This bold move, detailed in their 2025 Annual Review, signifies a strategic expansion beyond life science investments and aims to position Denmark as a central hub for quantum innovation, fostering promising start-ups and accelerating the path toward real-world applications before 2030.
Novo Holdings Quantum Investments Overview
Novo Holdings has committed DKK 1.4 billion (€188 million) to build a quantum technology ecosystem, recognizing the potential to impact both human and planetary health. This investment, initiated in 2024 and operational as of 2025, focuses on areas like quantum algorithms and sensing, with Denmark as a central hub. Early investments include direct stakes in Sparrow Quantum (DK) and Phasecraft (UK), alongside fund investments in Quantonation (FR) and 55 North (DK), demonstrating a commitment to supporting promising startups and scaling global leaders.
The quantum sector is transitioning from exploratory research towards “megaquop” systems—those incorporating error correction and improved qubit durability. Recent financings—like PsiQuantum’s $1 billion raise and QuEra’s $230 million—highlight growing confidence. McKinsey’s data suggests quantum computing revenues could surge from roughly $4 billion in 2024 to $72 billion by 2035, driven by advancements in hardware stability and the demand for practical applications beyond pure qubit count.
Novo Holdings’ strategy centers on identifying and supporting companies that can translate quantum potential into tangible health and environmental solutions. This includes software investments like Classiq, which automates quantum programming, alongside hardware firms like IonQ (with its acquisition of Oxford Ionics). The focus is shifting from simply increasing qubit numbers to achieving error correction and building robust, scalable systems—a key requirement for real-world impact and the development of industrial-grade quantum infrastructure.
Quantum Investment Momentum in 2025
Quantum investment surged in 2025, moving beyond speculative funding towards tangible infrastructure development. McKinsey’s data indicates a potential leap from USD 4 billion in quantum computing revenue (2024) to USD 72 billion by 2035. Key financings – like PsiQuantum’s USD 1 billion Series E and QuEra’s USD 230 million raise – demonstrate investor confidence. Novo Holdings’ DKK 1.4 billion (€188 million) commitment exemplifies a strategic shift toward supporting a full quantum ecosystem, particularly within human and planetary health applications.
The focus is now shifting from simply increasing qubit counts to stabilizing and correcting errors. Companies like IonQ (acquiring Oxford Ionics for USD 1.08 billion) and Quantinuum (42% revenue growth) are prioritizing hardware durability and fault tolerance. Software advancements are also crucial; Classiq secured a USD 10 billion valuation for its quantum circuit compilation technology, aiming to streamline program synthesis and scale quantum programs. This signals a move towards practical, usable quantum systems.
Novo Holdings, alongside funds like 55 North, are strategically investing in both startups and established players. This dual approach aims to build a robust Nordic quantum landscape and facilitate connections between emerging technologies and global stakeholders. The sector anticipates entering a “megaquop” era – systems incorporating error correction and significantly improved stability – and investment is aligning to support this transition from experimental labs to industrial infrastructure.
Transitioning Beyond the NISQ Era
The quantum computing landscape is rapidly shifting beyond the Noisy Intermediate-Scale Quantum (NISQ) era. Recent investment – Novo Holdings committed €188 million in 2024 – signals growing confidence in tangible progress. Key indicators include financing rounds exceeding USD 1 billion (PsiQuantum) and USD 230 million (QuEra), alongside revenue increases for companies like Quantinuum (+42% year-on-year). The focus is now expanding beyond simply increasing qubit counts to achieving stability and demonstrably lower error rates – a move toward “megaquop” systems.
A critical transition involves prioritizing error correction and durable qubits. While raw qubit counts initially drove investment, the industry recognizes that scalability requires significantly improved stability. Companies are actively pursuing diverse hardware approaches – trapped ions (IonQ acquiring Oxford Ionics), photonic systems (PsiQuantum), and neutral atoms (QuEra) – all aiming to create systems with error rates 100-1,000x better than those seen in 2020. This shift necessitates substantial investment in both hardware and sophisticated error mitigation techniques.
Software is equally vital. Classiq’s recent USD million Series C highlights the importance of automating quantum programming and building scalable quantum circuits. Beyond computation, applications like quantum secure communication are gaining traction. The combination of quantum computing and Artificial Intelligence (AI) presents a powerful synergy, potentially accelerating drug discovery and optimizing research. This convergence, coupled with increased focus on practical applications, suggests a maturing quantum ecosystem poised for significant growth by 2030.
Portfolio Highlights and Investments
Novo Holdings has committed DKK 1.4 billion (€188 million) to build a quantum technology ecosystem, recognizing the potential to impact both human and planetary health. Initial investments in 2025 focused on a diversified portfolio: direct investments in Sparrow Quantum (DK) and Phasecraft (UK), plus participation in the Quantonation (FR) fund and Playground (US). Critically, Novo Holdings also acted as a cornerstone investor in 55 North, a Danish-anchored quantum fund, signaling a commitment to fostering regional and global quantum leadership.
The quantum industry is transitioning from early experimentation toward more practical applications, with a projected revenue jump from USD 4 billion in 2024 to potentially USD 72 billion by 2035. Recent advancements, like Harvard/MIT’s two-hour continuous operation system, highlight progress beyond simply increasing qubit counts. This “megaquop” era prioritizes stability, error correction, and algorithmic compatibility, moving quantum computing closer to reliable, scalable infrastructure.
Software is also maturing, with companies like Classiq raising substantial funding (USD 100M Series C) to automate quantum programming. Strategic acquisitions, such as IonQ’s purchase of Oxford Ionics (USD 1.08B), demonstrate consolidation and a focus on achieving fault tolerance. This shift toward practical application and ecosystem development, combined with strategic investment, positions Novo Holdings to capitalize on the growing quantum landscape.
The Emerging “Megaquop” Era
The quantum computing landscape is rapidly maturing, transitioning from speculative research into a nascent industrial sector. 2025 marks a pivotal shift, moving beyond the “Noisy Intermediate-Scale Quantum” (NISQ) era towards what’s being termed the “megaquop” era. This new phase prioritizes stability, error correction, and algorithmic compatibility over simply increasing qubit counts. Recent funding – including IonQ’s $1.08B acquisition of Oxford Ionics and Classiq’s $100M Series C – signals increasing commercial viability and a focus on building robust, scalable systems.
Investment is surging, with McKinsey estimating quantum computing revenues could jump from USD 4 billion in 2024 to USD 72 billion by 2035. Key players like QuEra and Quantinuum are attracting substantial funding rounds (USD 230M and USD 600M respectively), while European firms like IQM secured a €275M Series B. Novo Holdings’ commitment of DKK 1.4 billion (€188 million) exemplifies a strategic move towards supporting companies advancing quantum technologies for both human and planetary health applications.
This “megaquop” era isn’t solely about hardware. Advancements in quantum software – like Classiq’s automated circuit compilation – are crucial for translating theoretical potential into practical applications. The focus is now on creating quantum systems that offer tangible improvements in areas like drug discovery, materials science, and secure communication. The industry is seeing a shift from pure experimentation toward building durable, error-corrected systems ready for industrial deployment, supported by a growing ecosystem of investors and developers.
Focus on Quantum Sensing Technology
Novo Holdings is significantly investing in quantum technologies, committing DKK 1.4 billion (€188 million) to build a thriving ecosystem. Their focus isn’t solely on computation, but strongly emphasizes quantum sensing alongside algorithms, recognizing its near-term potential for impactful applications in human and planetary health. This strategy positions them to capitalize on technologies poised for quicker commercialization, like advanced positioning, navigation, and timing systems – areas where quantum sensors offer distinct advantages over classical alternatives.
A key observation in 2025 is a shift beyond simply increasing qubit counts in quantum computers. The industry is now prioritizing stability, error correction, and algorithmic compatibility. This “megaquop” era—characterized by improved error rates (100-1000x better than 2020) and early logical qubit systems—is driving investment in companies like Sparrow Quantum and Phasecraft. Novo Holdings‘ investment reflects this maturation, focusing on durable, practical quantum solutions, including sensing, rather than purely experimental builds.
Quantum sensing is gaining traction due to its relatively mature technology and recognized importance. Unlike fault-tolerant quantum computing which is still years away, sensors are seeing applications emerge now. Investments in companies like those within Novo Holdings‘ portfolio are aimed at bridging the gap between research and real-world deployment, particularly in areas needing precise measurement, like medical diagnostics and environmental monitoring. This focus allows for quicker returns and demonstrable impact.
Synergy of Quantum Computing and AI
The synergy between quantum computing and AI is rapidly gaining momentum, fueled by over $1.4 billion in recent investments like those from Novo Holdings. While early quantum efforts focused on simply increasing qubit counts, the field is now shifting toward “megaquop” systems – prioritizing error correction and stability. This transition is vital because AI algorithms, particularly in areas like drug discovery and materials science, demand reliable, low-error computation to unlock their full potential—something traditional computers struggle with for complex simulations.
Quantum computing promises to dramatically accelerate AI’s capabilities in specific areas. For example, quantum machine learning algorithms could significantly speed up molecular simulations – currently a bottleneck in pharmaceutical research. Recent advancements, such as Harvard & MIT’s system achieving continuous two-hour operation via dynamic atom replacement, address stability issues crucial for running complex AI models. Companies like Phasecraft and Sparrow Quantum are at the forefront of developing these hybrid quantum-AI solutions.
Software is key to unlocking this synergy. Classiq’s recent $100M raise highlights the growing need for tools automating quantum programming, allowing AI researchers without deep quantum expertise to leverage the technology. Furthermore, the increasing deployment of quantum secure communication (QSC) – spurred by both security needs and advancements – creates opportunities for AI-powered threat detection and response systems operating on quantum-encrypted networks. This convergence is shaping the future of secure, accelerated computation.
Mapping the Quantum Innovation Landscape
Novo Holdings is strategically investing DKK 1.4 billion (€188 million) into the burgeoning quantum technology ecosystem, with a focus on applications impacting human and planetary health. This initiative isn’t simply financial; it’s building a connected ecosystem, starting in Denmark, to nurture promising startups like Sparrow Quantum and Phasecraft, alongside funds like Quantonation and 55 North. The goal is to move beyond theoretical advancements toward tangible solutions, anticipating quantum advantage in defined applications before 2030.
The quantum landscape is shifting from a focus solely on increasing qubit count to stabilizing and correcting quantum systems. Recent funding rounds – including over USD 1 billion for PsiQuantum and USD 230 million for QuEra – signal a maturing industry. McKinsey’s data suggests a potential jump in quantum computing revenue from USD 4 billion in 2024 to USD 72 billion by 2035, driven by advancements in error correction and the emergence of what’s being termed the “megaquop” era – systems incorporating robust error correction.
Beyond hardware, software is crucial. Companies like Classiq, having raised significant Series C funding, are automating quantum programming and enabling the creation of complex quantum circuits. This convergence of improved hardware and user-friendly software is vital for scalability. IonQ’s acquisition of Oxford Ionics further demonstrates industry consolidation and a drive toward fault tolerance, while applications like quantum secure communication are entering serious deployment phases, driven by both security needs and technological progress.
Building a Global Quantum Ecosystem
Novo Holdings is actively building a global quantum ecosystem with a commitment of €188 million (DKK 1.4 billion). Their strategy centers on Denmark as a hub, investing in both promising startups and established companies worldwide. This dual approach aims to foster innovation in quantum technologies with direct applications to human and planetary health – specifically targeting areas like quantum algorithms and sensing. Early investments include Sparrow Quantum (DK), Phasecraft (UK), Quantonation (FR), and Playground (US), alongside the fund 55 North, demonstrating a broad portfolio strategy.
The quantum industry is maturing beyond simply increasing qubit counts. Recent advancements, like Harvard/MIT’s two-hour continuous operation system and significant funding rounds for companies like PsiQuantum and QuEra (USD 1 billion and USD 230 million respectively), signal a shift towards stability and error correction. Novo Holdings anticipates entering a “megaquop” era – systems with improved error rates and durable qubits – moving beyond the limitations of Noisy Intermediate-Scale Quantum (NISQ) technology.
Software is also crucial; companies like Classiq are automating quantum programming with substantial Series C funding (USD millions). This focus on software, combined with hardware investments and a European anchor in 55 North (€275 million raise), reflects a holistic ecosystem approach. Novo Holdings believes this convergence of improved hardware, robust software, and strategic partnerships will unlock tangible quantum advantages before 2030, particularly in areas like drug discovery and precision research.
Addressing Challenges in Quantum Scaling
Novo Holdings is strategically investing heavily in quantum technology, committing DKK 1.4 billion (€188 million) to build a robust ecosystem. This focus stems from a belief in quantum’s potential to revolutionize both human and planetary health, specifically targeting areas like quantum algorithms and sensing. Early investments include Sparrow Quantum, Phasecraft, Quantonation, Playground, and the fund 55 North, signaling a commitment beyond pure hardware to encompass software and venture capital within the rapidly evolving Nordic quantum landscape.
The quantum industry is transitioning from the “Noisy Intermediate-Scale Quantum” (NISQ) era towards systems incorporating error correction – dubbed the “megaquop” era. Recent advancements, like Harvard/MIT’s system achieving continuous two-hour operation via dynamic atom replacement, demonstrate progress toward stable quantum circuits. Financially, companies like QuEra and Quantinuum are attracting significant investment (USD 230M & USD 600M respectively), while IonQ’s acquisition of Oxford Ionics signals consolidation and a push towards fault tolerance.
Software is becoming increasingly vital, with Classiq securing a USD 10 million Series C round. This funding supports automation of quantum programming, addressing the challenge of scaling quantum algorithms on complex hardware. Importantly, the shift emphasizes the need for durable systems with reduced error rates, moving beyond raw qubit count. Commercial applications like quantum secure communication are gaining traction, showcasing a maturation beyond research and towards practical implementation.
