Venture with Grace
00:18:50 · Juha Vartiainen, Grace Gong
[00:18:50] S1: Right. So, yeah, it's a public information. We have sold close to 30 quantum computers and we have delivered close to 20. So we have pipeline about 10 quantum computers. And as you said, that's worth of about 100,000,000. So there are roughly like 10,000,000 projects, each of them. And we have some... We have different models. We have a model for research for education, which is, let's say, closer to 1,000,000. And then there are some, let's say, flagship models for data centers, which are more expensive. They usually come with some upgrade path. They might come with some educational package. They might have some service together with them. So let's say it's not like a bare hardware whose cost is that much, but it's like a package. Often that package is negotiated to the needs of each customer separately. Let's say, I think these profit margins are public information as well. I don't remember them by heart. Maybe November 5 is our next earnings call, so our CEO is probably telling about the latest profit margins. [00:20:13] S0: When... I guess, like, what would Quantum Computers, like, commercial value be? So, like, for example, I know that, you know, you guys and the Deutsche Bank demonstrated, like, a quantum algorithm for real way scheduling real operational data. Right? So this is kind of like the public information on your website, but maybe we could talk about what is a real life application side of things in... Or the commercial value of the-
00:20:44 · Juha Vartiainen
[00:20:44] S1: quantum? Yeah, there are like a lot of like, let's say there are like classical quantum computing use cases. So it's all started maybe from these breaking the encryption codes, but that's maybe far away like a really to implement. But that's like driving the interest. Then there are use cases for material science, chemistry, which are, let's say, low hanging fruits, but still we are not yet there, but maybe soon we are there. But then there are like some very interesting use cases, let's say, security domain, which are like maybe interesting for secular telecom operators, which are already available today. So they are adding to the security of communication, for example, like generating some quantum keys with a better quality of entropy. Similarly, also, this good quality of entropy might be used for training AI models or something, and that's available already today. So we have seen actually a substantial amount of interest for this type of applications from private companies already now and an increasing amount of applications. So there are many application algorithm companies who are developing this for their end customers. So let's say we are living in really exciting times in quantum computing. So the market size is growing a lot like 30% a year. We are not even there in this, let's say, in the area of commercial applications. So very soon when we have beyond the crossover point, the markets could grow much more. So that's very exciting times.
00:22:50 · Grace Gong
[00:22:50] S0: I wanna talk about, like, since, like, I think at the beginning you shared that, like, you know, in 2018, you guys kind of spun out of the, you know, Aalto University and VTT, like, the company, and it was kind of like a physics lab. Now it's like a hardware company. You transition yourself from COO to nowadays, in charge of all these kind of global affair and everything. So can we talk about the transition of the company? What is it like in the past ten or over like ten years? Like, if you're separating the company into like different phases, like, what are some like different phases that you guys kind of have been through from like maybe?
00:23:30 · Juha Vartiainen
[00:23:30] S1: Yeah, we have had a very, very, let's say, distinct phases. So let's say the transition from the academic research to the company wasn't maybe very big. So we started this, let's say, like an academic research group with steroids. So we had like a lot of PhDs, about 20 PhDs and good funding. And then we had like a cozy, nice office and good equipment and started the research. Then we were about half a year old company and then came the COVID and they closed. And that was like a very terrible for us. So let's say all our plans were ruined. So we couldn't do recruitment. We couldn't meet anyone. We couldn't do, let's say, follow our business plan at all. And actually, that forced us to rethink our plans completely. We decided to do something different. So actually, yeah, we hired the marketing manager who started to do a lot of noise about that little what we had back in the days. And that was very important for us. We also, like, started hiring. We hired headhunter, a very aggressive one who started calling the best scientist during the COVID lockdowns. And surprisingly, after a couple of Zoom calls, we were able to make them to move to Finland. Was since it was a chaos for them, very difficult to find jobs for them. So we offered something and then they were actually moving surprisingly easily to the company they have never heard of. So we were able to hire like a top notch team during the COVID lockdowns. We started to do a lot of marketing, so visibility was good. But then we thought that this is not a proper business if we don't sell. So we then started our sales and since we thought this won't end well if we don't sell anything. And then we started to sell that little what we had and started to talk to governments. And then the COVID rescue funds arrived and we made our first sales to Finnish government. So and let's say that was surprising, actually, that changed the company a lot. So once you have your first big customer, then you have to deliver. So that really electrified our like we had to make a product. And then we started to do that and that kind of changed the new phase of the company. So then we started to repeat the sales. So we were able to sell to Germany and then one country after other. Started to make this kind of, let's say, repeat the same, let's say, sales cycle. And the model started to work quite well.
00:26:30 · Juha Vartiainen
And then we started to have several customer cases and we had to really build like a product function and all the quality function and let's say all the functions in a real company. So then we started our commercial journey. And of course, this commercial traction that attracted a lot more VC money and that started the flywheel to rotate. So then, of course, that attracted more talent. And then we got to the next level in the scaling. And I think there is no end for that. So let's say, okay, we have been now running it for like seven, eight years and this year we got the public listed and that kind of elevated the company again to the another level. So I think over the years, like what has been the biggest change people often ask it is that, let's say, becoming a salesman, starting as a scientist and becoming a salesman. So like really understanding that when you are in a company, it's all about selling. It's not about developing beautiful science. That's a bright product. It happens. So we publish a lot of like a top science and do like very exciting things, but we are here for generating value for the customers. Understanding that has been the biggest, let's say, change in the company, at least for me. And let's say this year when getting publicly listed, when getting all the processes, all the structures and everything that has made a huge difference. So I always felt like a little bit we are a are like little bit like eating in a different stable when we are a startup company and we have a great technology and we have even some customers, but still we were not like a proper company. But let's say this year, people started to take us seriously finally and kind of, let's say, definitely, let's say new chapter has been written to the history of the company. And we have grown internationally now to we have customers in US, we have customers in Asia, and it's very different from a couple of years ago.
00:28:58 · Grace Gong, Juha Vartiainen
[00:28:58] S0: When you're building the TIM machines that's in the pipeline, do you have to travel to each country or do you have to send the FDEs to different countries to actually build out very tailored solution for the TIM machines? Or would it be kind of very repetitive? So for example, the TEM machines are completely almost the same. [00:29:23] S1: When it comes to the hardware, they are almost the same. So mostly the tailorings are on software side and let's say these add ons and the projects around the hardware. But we aim to have a very standard product, as standard as possible to every customer. [00:29:42] S0: I want to shout out to a high manual. We'll address your question later. Saw some audience comments. So Finland is obviously probably very different than Silicon Valley. So I guess what is it like building a deep tech company or like deep tech unicorn in Espoo?