Investor Insights: Dr. Kai Hudek, General Partner at 55 North

What areas of quantum technology do you find particularly interesting?

There are two answers to this. One is a bit more philosophical, where quantum mechanics is the best description we have of how the universe operates and because of this, it’s fundamental to building the best possible technology. If you think that technology, business, and science are all progressing humanity, then quantum is the root of everything. 

The other answer is more practical: quantum computing is a particularly interesting area of technology, especially as Moore’s law has stalled over the past two decades. There are critical problems, like the green production of fertiliser, that conventional systems simply cannot solve. Quantum computing is not optional for addressing them, it’s required, and will necessitate an entirely new semiconductor industry to support it.

Are there any quantum applications that you think people aren’t talking about enough?

Quantum navigation comes to mind. Quantum sensors eliminate drift and point to true north at all times, enabling GPS-free navigation for autonomous aircraft and ground-based alternatives to fragile satellite systems. 

There’s also quantum timing. Advances in quantum timing are allowing more data to flow through data centres and cellular networks, with applications in radar, missile defence, and communications infrastructure. These applications are less attention-grabbing because they replace old systems rather than solve new problems, but their impact on global infrastructure is significant.

Do you have any advice for founders on how to get noticed in the quantum space?

Don’t just start with the technology. Start with a problem, and make sure it’s one you’re equipped to handle. The strongest startups marry a real problem, a market dislocation, and the right team.

Equally important is having a clear path to exit, which is often the hardest challenge for technical founders. Investors want a differentiated story that addresses a known market need and a credible commercial strategy to match. So, make sure you’re able to answer this question: “How are you going to make money?”

TFD’s Take

Kai's perspective cuts through a lot of the noise in quantum right now. Quantum is no longer a field you invest in despite the uncertainty, it’s one you invest in because of the clarity emerging around specific problems. The intersection of deep physics and critical infrastructure is creating opportunities that don’t need hype to justify them. For founders, that same logic applies: the quantum companies that will win are the ones grounded in a problem people want to fix, with a team built to solve it and a story built to sell it.