Commercial nuclear fusion remains a goal rather than a reality, but increasing venture capital investment is fueling promising startups that aim to deliver clean, safe, and nearly limitless energy. While most fusion companies that have raised over $100 million are based in the U.S., Europe is making significant strides with innovative players like Proxima Fusion.
Proxima Fusion, a German startup, recently secured a €130 million ($148 million) Series A funding round led by Balderton Capital and Cherry Ventures. This latest boost brings the company’s total funding to over €185 million ($200 million), positioning it as a strong contender in Europe’s race to develop fusion energy—an alternative to traditional nuclear fission that relies on uranium and imported fissile materials.
The stakes aren’t just about scientific achievement; they’re closely tied to energy security and geopolitical stability. Proxima’s CEO and co-founder, Francesco Sciortino, predicts that by the early 2030s, fusion giants will emerge across different regions, transforming the global energy landscape.
Until recently, Proxima’s resources limited its growth, with a modest €20 million ($21.7 million) seed round in April 2024. However, the company’s recent publication of its plans for a working fusion power plant marks a major milestone. The paper highlights the potential of stellarators—advanced reactors that use magnetic fields to confine hot plasma into a ring, enabling fusion to occur. Unlike tokamaks, stellarators don’t require a plasma current, making them inherently more stable. Building on the success of Germany’s Wendelstein 7-X stellarator, Proxima developed its own innovative design called Stellaris, detailed in the publication.
This new funding round was partly driven by Proxima achieving this milestone faster than initially planned. The oversubscribed round gave the company the opportunity to select partners that can support its next phases, including a crucial hardware demonstration set for 2027. Sciortino emphasizes that the infusion of capital is driven by investors recognizing that this is a finite journey—one that requires sustained investment over the coming years.
Major venture funds like Balderton and Cherry are well-positioned to continue supporting Proxima, with their substantial resources from recent funds. Balderton’s Early Stage Fund IX and Growth Fund II, along with Cherry’s $500 million fund closed in early 2025, signal strong backing for promising deep tech startups like Proxima.
Sciortino estimates that venture capital will be essential until around 2031, when the company plans to seek other sources of funding. The goal is to reach key milestones—including the 2027 hardware demonstration—that will demonstrate the viability of their fusion technology and attract further investment.
The belief in fusion’s potential is shared by investors like Ian Hogarth of Plural, who has invested in Proxima three times and calls it a “big shot.” Hogarth emphasizes that fusion could play a critical role in Europe’s energy future, helping decarbonize and provide stable baseload power while positioning Europe as a global leader in clean energy.
Proxima’s European roots are evident in its diverse investor base, including Bayern Kapital, Club degli Investitori, DeepTech & Climate Fonds, Elaia, HTGF, Lightspeed, OMNES Capital, and UVC Partners. The company is headquartered in Munich, spun off from the Max Planck Institute of Plasma Physics, and maintains collaboration with leading research centers in Switzerland and the UK.
Sciortino, originally from Italy and a physicist by training, has worked across Europe and at MIT in the U.S. His decision to return to Europe reflects a broader optimism about the continent’s potential to lead in fusion innovation—an ambition shared by many in the European scientific and investment communities.
