1 The EIC Accelerator Project

EIC Accelerator Program Overview

The EIC Accelerator is a flagship program under the European Innovation Council (EIC) designed to support small and medium-sized enterprises (SMEs) and startups in developing and scaling up innovative technologies. It seeks to bridge the funding gap often faced by early-stage companies working on breakthrough innovations, particularly in high-risk sectors such as deep tech.

Funding Structure

The EIC Accelerator provides a blended finance approach, combining both grants and equity investments:

Companies can receive a grant of up to €2.5 million. This grant is intended to fund the development of innovative products, services, or processes, covering research and development (R&D), prototyping, and testing.

• The program also offers equity funding, which has undergone adjustments over the years:
• Until 2024: Companies can receive up to €15 million in equity funding.
• Since 2025: The equity funding cap reduces to €10 million. This is aimed at ensuring sustainable growth while managing the financial resources of the EIC.

Purpose in the European DeepTech and Startup Ecosystem

The EIC Accelerator plays a crucial role in fostering innovation within the European startup ecosystem, particularly in the DeepTech sector, which includes advanced technologies like quantum computing, biotechnology, and artificial intelligence. Its main purposes are:

• Reducing the Innovation Gap: By providing funding, the EIC reduces the financial risk associated with bringing innovative products to market.
• Encouraging High-Risk Ventures: Many groundbreaking technologies face high uncertainty and long development timelines. The EIC Accelerator encourages companies to pursue these high-risk projects.
• Building a Competitive European Economy: The program aims to position Europe as a leader in innovation by supporting companies that can solve significant societal and economic challenges.

Role in Scaling Companies and Attracting Private Funding

The EIC Accelerator assists companies in several ways:

• Validation of Business Models: The rigorous selection process of the EIC provides validation to the winning companies, making them more attractive to private investors.
• Networking Opportunities: The EIC connects startups with potential partners, investors, and other stakeholders, creating a robust ecosystem for collaboration and support.
• Follow-up Investments: By providing initial funding, the EIC often enables companies to attract further investment from private sectors, leveraging their EIC funding as a stamp of credibility.

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EIC Accelerator Winner: SPARROW QUANTUM AS and Project QTOOL

Company Overview

SPARROW QUANTUM AS is a pioneering company based in Denmark that specializes in developing advanced quantum technologies. Their project, QTOOL, focuses on creating cutting-edge single-photon light sources for various quantum applications.

Project Description: QTOOL

The QTOOL project aims to develop state-of-the-art single-photon light sources. These light sources are critical for quantum technologies, including quantum computing, secure communication, and advanced sensing applications. The project seeks to address the growing demand for efficient and reliable single-photon sources, which are essential building blocks for quantum systems.

Technology Basics and Background

Single-Photon Light Sources:

• Definition: Single-photon light sources emit one photon at a time, which is fundamental for many quantum applications.
• Importance: In quantum communication, for instance, single-photon sources enable secure data transmission through quantum key distribution (QKD), where the security of the transmitted information relies on the principles of quantum mechanics.
• Technology: SPARROW QUANTUM utilizes advanced semiconductor technologies to produce these light sources, enhancing their efficiency and scalability. The sources are designed to operate at room temperature, making them more practical for real-world applications.

Application Areas

Conclusion

The EIC Accelerator's support for SPARROW QUANTUM AS and their QTOOL project exemplifies its role in nurturing innovative technologies that have the potential to revolutionize industries. By providing substantial funding and resources, the program not only facilitates the development of cutting-edge solutions but also strengthens Europe’s position in the global tech landscape.

2 The Funding Rounds

Since receiving the EIC Accelerator funding on June 16, 2021, Sparrow Quantum AS, a Danish quantum technology company, has secured additional funding to advance its quantum photonic technologies.

Seed Funding Round (May 2023):

• Amount Raised: 31 million DKK (approximately €4.1 million)
• Date Announced: May 11, 2023
• Lead Investor: 2xN
• Co-Investors: LIFTT and the European Innovation Council (EIC)
• Purpose: Accelerate product development, expand the team, and strengthen market position in quantum light-matter interfaces and single-photon sources for commercial quantum technologies. (finsmes.com)

Investor Information:

• 2xN: A venture capital firm based in London, known for backing world-class teams with high growth potential. (thequantuminsider.com)
• LIFTT: A venture capital firm investing in innovative technologies, with a focus on quantum photonics. (thequantuminsider.com)
• European Innovation Council (EIC): A European Union initiative supporting high-risk, high-reward innovations. (thequantuminsider.com)

Company Valuation:

As of June 13, 2024, Sparrow Quantum's latest deal was a secondary private transaction amounting to $128,000. The company's valuation details are not publicly disclosed. (pitchbook.com)

This seed funding round is the most recent known investment in Sparrow Quantum AS since their EIC Accelerator funding in 2021.

3 The Press Releases

Since receiving the European Innovation Council (EIC) Accelerator funding on June 16, 2021, Sparrow Quantum AS has published several press releases detailing significant developments:

1. Record Seed Funding Announcement (May 11, 2023): Sparrow Quantum secured 31 million DKK (€4.1 million) in seed funding, marking the largest investment in a Danish quantum technology company at that time. The funding round was led by the venture capital firm 2xN, with co-investments from LIFTT and the EIC. This investment aims to accelerate the development of Sparrow Quantum's products and services, expand its team, and strengthen its position in the market for quantum light-matter interfaces and next-generation single-photon sources for commercial quantum technologies. (thequantuminsider.com)

2. Strengthening Leadership Team with Niels Nielsen (September 14, 2023): Sparrow Quantum announced the addition of Niels Nielsen from 2xN to its Board of Directors. Niels, a seasoned entrepreneur and tech investor, brings valuable perspectives from the broader quantum tech industry. His expertise is expected to drive Sparrow Quantum's continued success, growth, and strategic vision forward. (thequantuminsider.com)

3. Quantum Leap in AI: Sparrow Quantum’s Chip at the Core of ORCA Computing’s PT-2 System (October 31, 2024): Sparrow Quantum's chip was integrated into ORCA Computing’s newly launched PT-2 quantum computing system, highlighting the company's role in advancing quantum computing technologies. (sparrowquantum.com)

4. New Initiative Elevates Denmark’s Role in Fault-Tolerant Photonic Quantum Computing (May 8, 2024): Denmark launched a five-year research and innovation initiative, backed by a DKK 16.2 million grant from the Innovation Fund Denmark. The 'Fault-Tolerant Quantum Photonics' (FTQP) project aims to redefine photonic quantum computing, with Sparrow Quantum playing a pivotal role in this advancement. (sparrowquantum.com)

5. Quantum Experts Join Forces to Revolutionize European Quantum Computing (March 14, 2024): Sparrow Quantum collaborated with ORCA Computing, Pixel Photonics, and the Niels Bohr Institute on the Eurostars project 'SupremeQ.' The initiative focuses on accelerating the development and commercialization of photonic quantum computing technology to achieve quantum advantage. (sparrowquantum.com)

These press releases underscore Sparrow Quantum's strategic partnerships, technological advancements, and leadership enhancements, reflecting its commitment to advancing quantum technology.

4 The Technology Advancements

Sparrow Quantum AS, based in Denmark, specializes in photonic quantum chip technology, focusing on delivering deterministic single-photon sources essential for quantum computing and communication. (sparrowquantum.com)

Advancements Since EIC Accelerator Funding (June 16, 2021):

Since receiving the European Innovation Council (EIC) Accelerator funding on June 16, 2021, Sparrow Quantum has achieved several significant milestones:

• Collaboration with NQCP: In May 2024, Sparrow Quantum and the Novo Nordisk Foundation Quantum Computing Programme (NQCP) at the Niels Bohr Institute formalized a collaboration agreement. This partnership aims to advance photonic quantum technology by co-locating their commercial lab spaces, sharing resources, and jointly nurturing future talent in the field. (sparrowquantum.com)
• FTQP Initiative: In May 2024, Denmark launched the 'Fault-Tolerant Quantum Photonics' (FTQP) project, a five-year research and innovation initiative backed by a DKK 16.2 million grant from the Innovation Fund Denmark. Sparrow Quantum is a key participant in this project, focusing on developing fault-tolerant quantum computing architectures centered around deterministic single-photon emitters. (sparrowquantum.com)
• Seed Funding: In May 2023, Sparrow Quantum secured €4.1 million in seed funding, marking the largest investment to date in a Danish quantum technology company. This funding is intended to expand the company's team and accelerate the development of its single-photon source technology. (tech.eu)

Technology Improvements and New Features:

Sparrow Quantum has made notable advancements in its technology:

Integrated Single-Photon Source: The company has developed an on-chip single-photon source capable of emitting over 100 single photons without quality degradation, at a rate exceeding 20 million single photons per second. This technology is directly deployable for applications such as multi-photon quantum simulations and quantum key distribution experiments. (tech.eu)

Market Demonstrations:

Sparrow Quantum has actively demonstrated its technology in the market:

Collaboration with ORCA Computing: In October 2024, Sparrow Quantum's chip was integrated into ORCA Computing's PT-2 quantum computing system, showcasing the practical application of their single-photon source technology in a commercial quantum computing platform. (sparrowquantum.com)

Patents and Publications:

Sparrow Quantum has established a foundational patent portfolio on deterministic single-photon source technology, securing intellectual property rights for their innovations in this field. (sparrowquantum.com)

While specific details about new scientific studies, clinical trials, or whitepapers are not readily available, the company's ongoing collaborations and technological advancements suggest active engagement in research and development within the quantum technology sector.

5 The Partnerships and Customers

Since receiving the EIC Accelerator funding on June 16, 2021, Sparrow Quantum AS from Denmark has established several significant partnerships and collaborations:

1. Collaboration with the Novo Nordisk Foundation Quantum Computing Programme (NQCP) at the Niels Bohr Institute (NBI): In May 2024, Sparrow Quantum and NQCP formalized a collaboration agreement, co-locating their commercial lab spaces at NBI. This partnership aims to advance photonic quantum technology by combining Sparrow Quantum's engineering expertise with NQCP's materials science proficiency. The collaboration focuses on sharing advanced photonic production and testing equipment, enriching the research and development environment at NBI, and nurturing future talent through joint knowledge-sharing and educational initiatives. (sparrowquantum.com)

2. Partnership with ORCA Computing: In October 2024, Sparrow Quantum provided its chip technology for ORCA Computing's PT-2 quantum computing system. This collaboration enhances the PT-2 system's computational power, making it approximately 4,000 times more powerful. The integration of Sparrow Quantum's deterministic photon chip technology is expected to drive advancements in generative AI and quantum-enhanced machine learning, with applications in healthcare, biotechnology, and high-performance computing. (sparrowquantum.com)

3. Participation in the 'SupremeQ' Eurostars Project: In March 2024, Sparrow Quantum, along with ORCA Computing, Pixel Photonics, and NBI, launched the 'SupremeQ' Eurostars project. This initiative aims to accelerate the development and commercialization of photonic quantum computing technologies to achieve quantum advantage. The project focuses on integrating Sparrow Quantum's single-photon sources with Pixel Photonics' detectors and ORCA Computing's system architecture, addressing challenges such as system engineering for scale and high operational costs. (insidequantumtechnology.com)

4. Strengthening Leadership with Niels Nielsen from 2xN: In September 2023, Sparrow Quantum expanded its Board of Directors by adding Niels Nielsen, a seasoned entrepreneur and tech investor from 2xN. Nielsen's expertise in the quantum technology industry is expected to accelerate Sparrow Quantum's growth and strategic initiatives, contributing to its vision of becoming a market leader in light-matter interfaces for quantum technologies. (sparrowquantum.com)

Impact on Market Position and Technological Advancements: These collaborations position Sparrow Quantum AS as a key player in the quantum technology sector, enhancing its market presence and credibility. The partnerships with leading institutions and companies facilitate access to advanced research facilities, cutting-edge technologies, and a broader customer base. They also provide opportunities for joint development of innovative solutions, fostering technological advancements and scalability in quantum computing applications.

By leveraging these strategic relationships, Sparrow Quantum AS is well-positioned to drive the commercialization of quantum technologies, contribute to the advancement of quantum computing, and establish itself as a leader in the field.

6 The Hiring and Company Growth

Since receiving the European Innovation Council (EIC) Accelerator funding on June 16, 2021, Sparrow Quantum A/S, a Danish quantum technology company, has demonstrated significant growth and strategic development.

Current Team Size and Hiring Status:

As of April 2025, Sparrow Quantum employs 32 individuals, reflecting a substantial increase from previous years. In 2023, the company had 20 staff members, indicating a 60% growth over approximately a year. (copenhagensciencecity.dk) This expansion underscores the company's commitment to scaling its operations and enhancing its technological capabilities.

Recent Key Hires and Leadership Changes:

In September 2023, Sparrow Quantum bolstered its leadership team by appointing Niels Nielsen from the investment firm 2xN to its Board of Directors. Niels Nielsen is a seasoned entrepreneur and tech investor with extensive experience in the quantum technology sector. His appointment is expected to provide valuable insights and strategic guidance, particularly in accelerating growth and expanding market reach. (sparrowquantum.com)

Implications for Company Growth and Scaling:

The addition of Niels Nielsen to the board is anticipated to drive Sparrow Quantum's strategic initiatives forward. His expertise is expected to enhance the company's ability to navigate the competitive quantum technology landscape, foster innovation, and establish partnerships that are crucial for scaling operations. The expanded team and leadership are well-positioned to advance Sparrow Quantum's mission of developing cutting-edge single-photon components for quantum technologies.

Management and Founding Team Developments:

Sparrow Quantum was founded in 2016 by Professor Peter Lodahl and Associate Professor Søren Stobbe from the Niels Bohr Institute. The company has experienced steady growth, with significant investments and strategic hires contributing to its expansion. The recent appointment of Niels Nielsen signifies a continued focus on strengthening the management team to support the company's ambitious growth objectives.

Overall, Sparrow Quantum's strategic hiring and leadership enhancements since receiving the EIC Accelerator funding reflect a robust trajectory toward becoming a market leader in quantum photonic technologies.

7 The Media Features and Publications

Since receiving the EIC Accelerator funding on June 16, 2021, Sparrow Quantum AS has been featured in various media outlets, participated in notable events, and engaged in significant activities. Below is a summary of these engagements:

Media Features:

• Podcast Appearances:
• Quantum Tech Pod, Episode 64: On January 3, 2024, Kurt Stokbro, CEO of Sparrow Quantum, discussed his journey from physicist to entrepreneur and investor, delving into the world of commercial quantum technology. (sparrowquantum.com)
• All Things Photonics: Quantum Dot, Quantum Compute — With Peter Lodahl: On December 12, 2023, Peter Lodahl, Founder and CSO of Sparrow Quantum, explored topics related to quantum dots and their role in advancing photonic quantum technology. (sparrowquantum.com)
• Conference Participation:
• IQT The Hague 2024: Peter Lodahl was selected as a speaker for the conference, highlighting his contributions to quantum physics and the development of deterministic single-photon sources. (insidequantumtechnology.com)

Publications:

• Press Releases:
• Sparrow Quantum Raises €4.1M in Seed Funding: On May 11, 2023, the company announced securing 31 million DKK (€4.1 million) in seed funding, marking the largest investment to date in a Danish quantum technology company. (finsmes.com)
• Danish Quantum Technology Firm, Sparrow Quantum, Lands Record Seed Funding: Also on May 11, 2023, this article detailed the seed funding round led by 2xN, with co-investments from LIFTT and the European Innovation Council. (thequantuminsider.com)
• News Articles:
• Sparrow Quantum Nets $4M in Seed Round: Published in August 2023, this article covered the company's seed funding round and its focus on light-matter interfaces for quantum technologies. (photonics.com)

Podcasts and Interviews:

• Quantum Tech Pod, Episode 64: Kurt Stokbro, CEO of Sparrow Quantum, shared insights into the company's journey and the future of photonic quantum technology. (sparrowquantum.com)
• All Things Photonics: Quantum Dot, Quantum Compute — With Peter Lodahl: Peter Lodahl discussed the significance of quantum dots in advancing photonic quantum technology. (sparrowquantum.com)

Conferences and Events:

IQT The Hague 2024: Peter Lodahl was selected as a speaker for this conference, emphasizing his role in the development of deterministic single-photon sources. (insidequantumtechnology.com)

Involvement in Events:

• Sparrow Quantum strengthens leadership team with Niels Nielsen from 2xN: On September 14, 2023, the company announced the addition of Niels Nielsen to its leadership team, aiming to accelerate growth and strategic initiatives. (sparrowquantum.com)
• Quantum experts join forces to revolutionize European quantum computing: On March 14, 2024, Sparrow Quantum collaborated with ORCA Computing, Pixel Photonics, and the Niels Bohr Institute for the 'SupremeQ' Eurostars Project, aiming to advance photonic quantum computing technology. (sparrowquantum.com)

These engagements highlight Sparrow Quantum AS's active participation in advancing quantum technology and its growing presence in the industry.