Ambitious 32-year-old aims to construct the globe's inaugural fusion power plant with a substantial investment of 130 million in Munich-based startup, Proxima Fusion.
Fusion Energy Startup Proxima Fusion Rakes in €130 Million
Get ready to witness a fusion of innovation and finance with Munich-based Proxima Fusion, a dynamic fusion startup that recently secured an impressive €130 million (approximately USD 150 million) in a Series A funding round.
A-List Investors
The Series A funding round was headlined by Berlin-based VC Cherry Ventures and London-based VC Balderton Capital, backed by UVC Partners, DTFC (DeepTech & Climate Fund), Plural, Leitmotif, Lightspeed, Bayern Kapital, and even existing investors Redalpine.
European Fusion Pioneers
This round sets the record as the largest private investment round in fusion energy in Europe and one of the largest globally. US-based Commonwealth Fusion Systems (CFS) still holds the record with its USD 1.8 billion Series B round in late 2021. Other notable players include German company Marvel Fusion, which secured USD 120 million in March this year. Similar to Proxima Fusion, these companies are hunting for the elusive commercial viability of fusion energy.
Global fusion startups are currently locked in a race to construct the world's first fusion power plant. Early prototype power plants are slated for operation as early as the 2030s.
Hefty Investments and Soaring Ambitions
Since its inception in Bavaria, Proxima Fusion has amassed over €185 million (USD 200 million) in both public and private funding, which includes the latest fundings. However, achieving their ambitious goal of a fusion power plant is estimated to cost a hefty billion dollars, suggesting that more investments are likely on the horizon. According to Proxima Fusion's CEO and founder, Francesco Sciortino, state support will play a integral role in the future.
The Power of Nuclear Fusion
Curious about fusion energy? It has been on humanity's radar for about a century. Fusion energy is generated when two light atomic nuclei, usually hydrogen nuclei, are pressed together so tightly that they combine into a heavier nucleus, resulting in energy. Similar to the sun and stars, if humans could harness this energy production, it would bring with it several benefits like virtually unlimited energy without CO2 emissions and fewer dangerous by-products than traditional nuclear power.
About Proxima Fusion
Launched in April 2023 as a spin-off from the Max Planck Institute for Plasma Physics (IPP), Proxima Fusion boasts a team hailing from the Max Planck Society, MIT, and Google. The company found success following breakthroughs in research on stellarators, a theoretical concept for installations that generate fusion energy reliably, and declaring the last physical problem solved in 2022. Proxima Fusion is now on a mission to become one of the first companies globally to introduce a fusion power plant using this technology.
With the help of the recent funding, Proxima Fusion aims to unveil their stellarator model by 2027. The company is also in talks with several European governments to secure a location for their demonstration stellarator, Alpha, which will pave the way for a fusion power plant. Alpha is expected to be operational by 2031. The company is also adding team members across its three locations: headquarters in Munich, Paul-Scherrer-Institut near Zurich, and the Culham Fusion campus near Oxford (UK).
Proxima Fusion initially raised €7 million in a pre-seed round in May 2023, followed by an angel round of €500,000. In April 2024, they secured an additional €20 million. This latest round signifies a substantial milestone for the startup.
Currently, Proxima Fusion stands as Europe's fastest-growing fusion energy startup, accelerating the pursuit of energy sovereignty and carbon-neutral growth through fusion technology, and potentially reshaping the geopolitics of energy by turning it into a technology-driven market.
What will Proxima Fusion use the newly secured €130 million for? The startup plans to apply the funds towards unveiling their stellarator model by 2027, conducting research in the field of science, particularly fusion energy, and collaborating with various European governments and institutions in the technology sector.
