Investment surge: Groundbreaking energy startups break records as they race towards sustainable power solutions
European fusion energy startups are making significant strides in the race to develop a viable and sustainable energy source. Companies like Proxima Fusion and Marvel Fusion are leading the charge, attracting substantial investment in 2021 and 2022.
Proxima Fusion, based in Munich, raised a record-breaking €130 million in its Series A funding round in 2024, marking the largest funding round for a European fusion startup to date. Marvel Fusion, another Munich-based company, followed suit with a €113 million Series B funding round in March 2021.
These investments have been part of a broader trend. European fusion energy startups raised a record €290 million in the first half of 2021, surpassing the 2024 levels, the previous record year.
In terms of government support, European countries have also pledged substantial funding. The UK government committed £2.5 billion for fusion research over the next five years, France announced part of a broader €54 billion investment plan involving fusion, and Germany launched a €390 million fusion initiative aiming to build the first fusion reactor in the country.
However, when compared with US-based fusion startups, the funding levels are generally higher in the US, reflecting its more mature and heavily invested fusion ecosystem. For example, Helion Energy, a US fusion company, closed a $425 million funding round in January 2025, led by SoftBank Vision Fund 2, with its valuation reaching $5.4 billion. Commonwealth Fusion Systems (CFS) raised $1.8 billion in a Series B round in late 2021, with significant venture capital backing including from energy giant Equinor and a range of strategic investors.
US companies have planned aggressive timelines for pilot plants and commercial reactors, supported by major energy firms and tech investors including Jeff Bezos and Sam Altman. Despite Europe’s significant funding, it still lags behind the US in fusion funding. A whopping $1 billion Series B was secured by Bill Gates-backed Commonwealth Fusion Systems, dwarfing the largest European funding rounds.
In summary, European fusion startups attracted substantial investment in 2021 and 2022, but US fusion startups secured significantly larger funding rounds overall during the same period. This difference reflects the US's more mature fusion venture ecosystem, larger VC involvement, and biotech-level valuations for fusion projects. However, Europe’s increasing public and VC funding, coupled with ambitious government commitments, is rapidly growing its fusion energy landscape, signaling a strong strategic push toward commercial fusion power.
References: [1] TechCrunch. (2021). Proxima Fusion raises €130 million Series A to build a stellarator fusion reactor in Germany. [2] Reuters. (2021). European fusion energy startups raised a record €290 million in the first half of 2021. [3] Forbes. (2021). Proxima Fusion Raises €130 Million Series A To Build A Stellarator Fusion Reactor.
Technology continues to drive progress in European fusion energy as startups like Proxima Fusion and Marvel Fusion make significant strides towards developing a viable energy source. These advancements have attracted substantial investments, with Proxima Fusion raising €130 million in 2024 and Marvel Fusion securing €113 million in 2021, respectively.
