Unleashing the Power of Quantum

An Interview with Theodor Lundberg, Associate, Novo Holdings, Seed Investments

Quantum technology is emerging as one of the most transformative areas of innovation, with applications poised to revolutionize healthcare. To gain insights into the investment landscape of quantum technologies, we sat down with Theodor Lundberg. Theo is a physicist with a PhD in Quantum Computing from the University of Cambridge. After a successful stint at Sutter Hill Ventures, one of the world's oldest venture capital firms, he has now moved into the healthcare investment space with Novo Seeds' brand-new Quantum Investment mandate.

In this special "Meet our Community" feature, Theo shares his insights on the transformative potential of quantum tech in healthcare, the challenges that lie ahead, and how Denmark is positioning itself as one of the global hubs for quantum innovation.

- Let’s start with the basics. What is quantum technology, and why is there so much excitement around it now?

Quantum technology has been around for over a century, dating back to Niels Bohr and the early days of quantum physics. In fact, quantum principles are already integral to devices like lasers and PCs. What’s truly exciting today is the next generation of quantum: quantum computing, sensing, and communication. Quantum computing leverages principles like entanglement, superposition, and interference to solve problems that classical computers can't. It's the area with the largest potential for commercial impact. Quantum sensing enables the detection of extremely small phenomena, such as cellular oxidative stress which is the goal for companies such as QT Sense. Quantum communication focuses on secure data encryption over long distances, though its healthcare applications are more limited.

- Focusing on healthcare, how do you see quantum technology shaping the field?

Healthcare won’t see quantum technology everywhere, but there are specific, impactful use cases. For instance, quantum computing could be used for molecular docking in drug discovery or protein folding simulations. Quantum sensing, on the other hand, is more technologically advanced and could become relevant earlier. A great example is hyperpolarized contrast agents, which allow us to visualize biological activities that were previously undetectable. These agents have already been used in 50 clinical trials involving nearly 2,000 patients. These applications show a lot of promise, but it is worth mentioning that they are still in their infancy.

- Are there any specific low-hanging fruits for investments in these areas?

Companies in the sensing technologies space could offer a more near-term promising investment opportunity because they are more mature, and the technical risk is somewhat lower compared to quantum computing, which is still in its early stages. The key here is to find the commercial use case. Another avenue is investing in companies that supply components and equipment needed for quantum computing research. This could be a kind of “picks and shovels” approach. In this sense, companies similar to Bluefors or Zurich Instruments could be interesting opportunities.

- Amid this excitement around quantum, where do you see this technology in the next 5 to 10 years?

This is a challenging question because timelines for quantum breakthroughs are still hard to predict. From an investment standpoint, at Novo we're taking a realistic approach. Quantum technology has immense potential and we are optimistic that we will see the first commercial life science use cases in the coming years, but it’s going to take time before it will be widely applicable to healthcare.

"We are optimistic that we will see the first commercial life science use cases in the coming years, but it’s going to take time before it will be widely applicable to healthcare"

- Then, why do you think that now is the right moment to invest in quantum tech for healthcare?

We are at a pivotal point, especially with the recent progress in quantum computers. There was a landmark result in late 2023 when Google demonstrated a key milestone in creating a logical qubit—the building blocks of scalable quantum computers. Several other companies such as Quantinuum have followed suit with similar results since. This is a big deal because, in theory, once having 100 logical qubits, quantum computers will be able to solve problems that are impossible to address for classical computers nowadays.

- Following up on Novo Holdings and its recently launched Quantum Investment mandate. Can you provide an overview?

The fund is 1.4 billion DKK, to be deployed by 2030. It will support a mix of fund investments and direct investments, with a strategic focus, akin to Novo’s Antimicrobial Resistance Fund. One of the main goals of our Novo Holdings investment strategy is to support the local Nordic ecosystem and help bring in promising international players, pairing them with Denmark’s robust biotech sector.

- Denmark seems to be standing out in the global quantum race. Would you agree?

Yes, Denmark is already making strides. The Novo Nordisk Foundation has been supporting quantum research for several years now, and we’re starting to see the fruits of that effort. From a long-term perspective, we view quantum as a technology that will transform a range of industries, including healthcare. For the moment quantum might not deliver the same investment returns as AI or life sciences in the near-term, but the we and the Foundation believes in its transformative potential and is preparing for its eventual mainstream application.

- Given the hype surrounding this new computational wave, will quantum technology have a positive impact on deal-making?

Diagnostics using quantum sensing may draw greater interest but, at the end of the day, investors must look for a strong commercial case — having quantum tech doesn’t automatically justify a higher valuation, unless it enables a more versatile platform.

- And could it help us make better investment decisions?

For venture investment decisions, quantum computing won’t replace human relationships or intuition, especially in venture capital. However, in capital markets, where vast amounts of data exist, quantum algorithms may be able to help optimize portfolios. That said, quantum optimization algorithms often offer only marginal speed-ups compared to classical methods. In this field, it is more probable that AI has a more immediate impact.

- Now let’s talk about the challenges that quantum technology may bring. For instance, will quantum pose a risk to cybersecurity?

Leveraging quantum computing to discover new drugs will most likely not be much different from the current way we use classical computers or artificial intelligence nowadays. Quantum is just another tool in your toolbox – not a panacea. Success in healthcare, or any industry, will still depend on teams with unique insights and the ability to leverage these tools effectively. Regarding privacy, it is true that quantum computers could eventually break current encryption schemes, which is why quantum-safe cryptography is critical. Also, from the technical angle, scaling quantum computers to the order of thousands or millions of logical qubits and improving quantum algorithms are hurdles we’re still navigating.

- Then, to wrap up, we could say that quantum is incredibly exciting, but we must stay realistic about its timeline and challenges ahead.

Absolutely. It will take time before we see widespread commercial applications, especially in healthcare, but the groundwork is being laid now. As investors, we need to stay focused on the long game and with careful diligence, I believe there will be attractive returns to be found. The key is to keep track of the progress and be ready when quantum tech starts delivering real-world value.

Quantum technology holds immense potential for healthcare and life sciences, but its full realization within the healthcare sector is still years away. With researchers and investors like Theodor Lundberg working tirelessly to bring quantum innovations to life, we may be closer to revolutionary breakthroughs than we think. However, as he emphasizes, it’s essential to approach these investments critically and also with both optimism and realism. We must understand that the true widespread impact of quantum will only be realized in the years to come and will require patience, persistence, and visionary investment.