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The dream of nuclear fusion clean, safe, and virtually unlimited energy is inching closer to reality, and Europe now has a strong contender in the race: Proxima Fusion. The German startup has secured an impressive €130 million Series A round, positioning itself as a key player in the global fusion arena.
While most high-profile fusion startups hail from the U.S., Proxima is proudly European, backed by notable investors like Balderton Capital, Cherry Ventures, and Plural. This funding not only reflects investor confidence but also Europe’s determination to drive innovation in the energy sector. Proxima’s unique approach relies on stellarators, a more stable alternative to traditional tokamak reactors.
With roots in the Max Planck Institute for Plasma Physics and a growing multinational team, Proxima is set to accelerate the fusion timeline. As climate urgency grows, so does the appetite for revolutionary energy solutions, and fusion might just deliver on that promise.
A European Challenger in a U.S. Dominated Field
Historically, the United States has led the charge in fusion technology, with the majority of companies raising over $100 million headquartered across the Atlantic. Proxima Fusion, however, stands out as a rare exception. This German startup has now secured more than €185 million (approximately $200 million) in combined public and private funding, positioning it as a top European player in a highly competitive global market.
The latest round was led by two prominent venture capital firms, Balderton Capital and Cherry Ventures, and was significantly oversubscribed. Other participants included a long list of European funds, such as Bayern Kapital, HTGF, UVC Partners, DeepTech & Climate Fonds (DTCF), Elaia, OMNES Capital, Leitmotif, Lightspeed, and Club degli Investitori. The strong European presence on the cap table highlights Proxima’s role not just as a German startup but as a pan-European innovation leader.
The Race to Realize Fusion Energy
Fusion energy, the process of merging atomic nuclei to release vast amounts of energy, offers an enticing promise: clean, safe, and practically limitless electricity with zero greenhouse gas emissions. Unlike traditional nuclear fission, fusion does not rely on uranium or other rare imported fissile materials, sidestepping many of the geopolitical and environmental concerns associated with current atomic technologies.
- Zero Carbon Emissions: Fusion produces no greenhouse gases during operation, making it one of the cleanest energy sources on the planet.
- No Risk of Meltdown: Unlike fission reactors, fusion systems don’t carry the same catastrophic meltdown risks, as the reaction stops naturally when containment fails.
- Abundant Fuel Supply: Fusion relies on isotopes like deuterium and tritium, which can be extracted from water and lithium, both of which are widely available and inexpensive.
- Energy Security: Fusion reduces dependence on imported fossil fuels and uranium, strengthening national energy independence.
From Seed Stage to Scientific Milestone
Proxima Fusion was launched in Munich as a spin-off from the Max Planck Institute for Plasma Physics, one of the world’s foremost institutions in fusion research. In April 2024, the company raised a modest €20 million seed round, which laid the foundation for what would become a breakthrough year.
Shortly after, Proxima made waves in the scientific community by publishing a peer-reviewed paper detailing its plans for a fusion power plant. Central to its innovation is the stellarator, a type of fusion reactor that uses complex magnetic fields to contain hot plasma in a twisted ring. Unlike the better-known tokamak design, stellarators don’t require a plasma current, making them inherently more stable and potentially more practical for long-term use.
Proxima’s design, dubbed Stellaris, builds on the legacy of Germany’s Wendelstein 7-X, the world’s largest stellarator. Leveraging insights and infrastructure from this cutting-edge machine, Proxima has advanced with a design that many now consider the most viable path toward commercial fusion energy.
Speed and Strategy Win Investor Confidence
Achieving a significant scientific milestone in half the time promised to investors helped Proxima earn significant trust and enthusiasm in this new funding round. According to Francesco Sciortino, Proxima’s CEO and co-founder, the company’s rapid progress gave it a distinct advantage in selecting the right long-term partners.
“This round was oversubscribed, and we now have investors who are not only suited for our current phase but also for what comes next,” Sciortino said. That future includes massive capital needs as Proxima gears up for a critical hardware demonstration in 2027, one of many milestones that must be met on the way to deploying a working power plant by the early 2030s.
Long-Term Vision with a Timely Roadmap
Sciortino believes venture capital will remain essential to Proxima’s growth for at least the next five to six years. “We expect to rely on VC funding until 2031, give or take,” he noted. After that, the company may look toward infrastructure investors, sovereign funds, or public-private partnerships to scale up commercialization.
The key selling point for investors isn’t just the dream of limitless clean energy. It’s the clear and time-bound roadmap Proxima has developed. Unlike many fusion ventures that promise distant timelines, Proxima’s strategic milestones give backers tangible progress points to monitor, making the investment more than just a moonshot.
A Proudly European Endeavor
While Proxima’s headquarters and core research facilities are in Munich, its operations stretch across the continent. The company has active teams at the Paul Scherrer Institute in Switzerland and the Culham Centre for Fusion Energy in the UK, which is home to the country’s national fusion research laboratory. This cross-border collaboration has helped cement Proxima’s image as a European, not just a German project.
Sciortino himself is a symbol of this vision. A physicist originally from Italy, his career has taken him through the UK, Switzerland, and the United States, including a stint at MIT, before returning to Europe to co-found Proxima. “I’m a fairly proud European,” he said, “and always wanted to think that there is a future on this continent that somebody has to build.”
Fusion’s Geopolitical Significance
The race for fusion energy isn’t just about science or even climate. It’s also about energy independence and geopolitical leverage. Current nuclear power plants rely on enriched uranium, often sourced from unstable or adversarial regions. Fusion, on the other hand, could break that dependency entirely.
Sciortino envisions a near future where “fusion giants” emerge in every significant geopolitical bloc, from North America to Europe to Asia. With this recent investment, Proxima has taken an essential step toward ensuring that Europe is not left behind in the next great energy revolution.
A Bet on the Future of Energy
Among Proxima’s most committed backers is Ian Hogarth, partner at founders-led fund Plural, who has now invested in the company three times. He views Proxima as a bold but rational bet. “This is a big shot,” he told TechCrunch, emphasizing the dual potential to decarbonize the grid and to provide a stable energy baseload for the continent’s future needs.
- Strategic Clean Tech Investment: Fusion is viewed as a once-in-a-generation opportunity to transform global energy systems while significantly reducing emissions.
- European Technological Leadership: Proxima offers Europe the opportunity to lead, not follow, in the emerging fusion economy.
- High-Risk, High-Reward Potential: With a clear roadmap and rapid progress, fusion startups like Proxima appeal to forward-thinking VCs willing to take a big bet.
FAQs
What is Proxima Fusion?
Proxima Fusion is a German startup focused on developing commercial nuclear fusion power using stellarator technology, aiming to deliver clean and stable energy.
How much funding has Proxima Fusion raised?
Proxima recently closed a €130 million Series A round, bringing its total funding to over €185 million from both public and private sources.
What makes Proxima Fusion’s approach different?
Unlike most fusion startups that use tokamak reactors, Proxima is developing stellarators, which are more stable and do not require plasma currents.
When is Proxima aiming to demonstrate its technology?
The company aims to conduct a critical hardware demonstration by 2027 and plans to secure alternative capital to sustain its growth through 2031.
Who are the major investors backing Proxima Fusion?
Investors include Balderton Capital, Cherry Ventures, Plural, HTGF, UVC Partners, and several other European funds dedicated to deep tech and climate innovation.
Conclusion
Proxima Fusion’s €130 million funding marks a turning point in Europe’s fusion energy ambitions. By leveraging stellarator technology and a strong network of scientific and financial backers, the startup is fast-tracking development toward clean, secure, and scalable energy solutions. As geopolitical tensions and environmental challenges rise, Proxima’s vision offers hope for a sustainable future powered by fusion. With major milestones on the horizon, the company is well-positioned to transform energy as we know it and lead Europe in doing so.
