Sparrow Quantum raises €21.5 million for photonic quantum chips
The Danish company says this investment will enable it to scale production of its on-chip deterministic single-photon source and advance research to develop entangled photon sources, as well as supporting technological sovereignty in Europe
Sparrow Quantum, a supplier of photonic quantum chips, has secured €21.5 million in Series A funding to accelerate the development and commercialisation of its quantum chip technology. The investment round was led by PensionDanmark, with backing from EIFO and Novo Holdings and additional investments from existing investors 2xN, LIFTT, and the European Innovation Council. Sparrow Quantum says this investment will enable it to meet the growing demand for photonic quantum hardware by accelerating R&D, expanding chip production, and bringing next-generation quantum chips to market.
The company describes its flagship product, Sparrow Core, as an on-chip deterministic single-photon source critical for scaling photonic quantum computing by generating photons reliably on demand. While at the Niels Bohr Institute in Copenhagen, Peter Lodahl, founder of Sparrow Quantum, conducted research that laid the groundwork for Sparrow Core. Today, the company says its product sets the industry benchmark, delivering best-in-class efficiency, quality, and exceptional stability.
“With this investment, we can truly intensify our efforts to bring quantum technology from the lab to the market,” says Lodahl, founder and chief quantum officer of Sparrow Quantum. “It enables us to scale up in three critical areas which are essential for industrialising our photonic quantum chips and ensuring we can deliver stable, advanced solutions to the market. It is an honour to build up a truly world-class team of quantum photonics experts with unique know-how on quantum photonic chip technology.”
Building on a €4.1 million seed investment raised in 2023, the company plans to use this new funding to broaden its ambitions across three strategic areas. These include establishing a scaled-up production for photonic quantum chips to meet growing demand, advancing R&D to develop entangled photon sources, and expanding technical expertise to bring new quantum products to market.
“Quantum technology can open an entirely new world of solutions to complex problems, and the Danish research environment, from which Sparrow Quantum emerges, has the potential to position Denmark as an international frontrunner in the field,” says Peter Stensgaard Mørch, CEO of PensionDanmark. “Therefore, we see a clear potential for the investment to yield an attractive return on our members' pension savings while also benefitting the national economy and Danish industry. That is why it is an obvious investment for PensionDanmark.”
In the past few years, Sparrow Quantum says it has made significant strides toward delivering market-ready solutions by partnering with quantum computer integrators and full-stack system providers across Europe. Powered by the Sparrow Core chip, photonic quantum computers can achieve notably faster processing speeds than earlier iterations using probabilistic sources, the company says, fuelling further advancements in generative AI and quantum-optimised machine learning. These developments could offer unprecedented scalability and real-world applications across multiple sectors – within Europe and beyond.
Sparrow Quantum adds that this investment exemplifies how to foster broader collaboration among chip manufacturers, foundries, and system integrators on European soil, marking a crucial leap for Europe’s emerging quantum supply chain.
“This investment is a testament to Denmark and Europe’s ability to lead in quantum technology,” comments Kurt Stokbro, CEO of Sparrow Quantum. “With strong backing from visionary Danish investors, we are ready to unlock quantum breakthroughs that benefit society and the global economy.”
Beyond commercial scaling, Sparrow Quantum highlights that this investment strengthens Europe’s quantum supply chain, ensuring that chip manufacturing, quality control, and R&D remain within European borders. This aligns with key EU initiatives like the Chips Act, supporting technological sovereignty and global competitiveness in quantum innovation.
“Sparrow Quantum demonstrates how Denmark – building on the foundation of the Niels Bohr Institute – has developed world-leading quantum expertise,” says Peder Lundquist, CEO of EIFO. “Professor Lodahl’s research paved the way for the company’s groundbreaking quantum chip, which is now in global demand. With our investment, we are strengthening both their leading position and the role of Denmark and Europe in the quantum future.”
