Merck Venture Arm Invests in Quantum Computing Startup Seeqc
April 09 2020 - 2:14PM
Dow Jones News
By Sara Castellanos
Quantum computing startup Seeqc Inc. has raised more than $11
million in venture capital funding from investors including a
subsidiary of German company Merck KGaA, which is interested in
using the technology for materials science and pharmaceutical
development.
M Ventures, the corporate venture arm of Merck, has invested $5
million in Elmsford, N.Y.-based Seeqc, betting that in several
years, the startup's technology could save Merck time and money
related to simulating drugs and chemicals. The Series A is expected
to close later this spring, according to a Seeqc spokesperson.
"We think this technology will change the world of simulations
for us if it proves to be scalable," said Philipp Harbach, head of
in silico research at Merck.
Over the past two years, Merck has formed a quantum-computing
task force of about 50 experts who are exploring use cases for a
technology that could one day prove to be more powerful than
traditional computers, including supercomputers.
Some experts say quantum computing could possibly be used by
researchers combating the coronavirus pandemic to speed up certain
calculations related to drug discovery and hospital logistics.
However, neither Merck nor Seeqc have plans to use the technology
for purposes related to the new coronavirus.
Instead, Merck is interested in experimenting with technology
from Seeqc and other quantum computing-related vendors including
Germany-based HQS Quantum Simulations to benefit materials science
and drug discovery over the next several years, Mr. Harbach
said.
Simulations of chemicals and pharmaceuticals, which Merck
manufactures, are costly and time-consuming to complete using
standard computers, even supercomputers. Validating the drugs in
labs adds more time to a process that can take years. Predicting
positive and negative effects of specific drugs, for example, is a
computationally complex problem because it requires simulating the
structure of molecules and their chemical features.
Quantum computing could potentially speed up drug and materials
development, therefore cutting costs, Mr. Harbach said, because the
technology has the potential to sort through a vast number of
possibilities nearly instantaneously and come up with a probable
solution. "If you can mimic a real-life experiment on a quantum
computer, that could basically make things much faster in
development, and of course much cheaper," Mr. Harbach said.
By 2023, about 20% of organizations, including businesses and
governments, are expected to budget for quantum-computing projects,
up from less than 1% in 2018, according to research and advisory
firm Gartner Inc.
Founded in 2019, Seeqc is a spinout of Elmsford-based Hypres
Inc., a developer of superconductor electronics. Aside from M
Ventures, the startup's other investors include BlueYard Capital,
Cambium, New Lab and the Partnership Fund for New York City.
There is currently no commercial-grade quantum computer on the
market, but many companies are building quantum-computing systems
using different technologies and architectures. They face
engineering challenges that are making the road to market longer
than planned.
Seeqc is building a quantum computing system using a so-called
hybrid architecture that combines classical and quantum computing
and is meant for very specific use cases, said John Levy, Seeqc's
co-chief executive.
One of the benefits of the system is that it could reduce
decoherence and therefore run an algorithm more reliably, Mr. Levy
said. Decoherence refers to changes in temperature, noise,
frequency and motion that can jostle quantum particles and hurt the
accuracy of a calculation or prevent it from being completed.
The company is currently raising more money from investors and
will use the funding to build a "toy-level" version of its quantum
computer. "The idea is to deliver, within a three-year time
horizon, an architecture that's built around a real-world problem
and has the potential to scale, " Mr. Levy said.
Write to Sara Castellanos at sara.castellanos@wsj.com
(END) Dow Jones Newswires
April 09, 2020 13:59 ET (17:59 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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