Proxima Fusion joins the club of well-funded nuclear contenders with €130M Series A

While commercial nuclear fusion power remains a future goal, the influx of venture capital into startups dedicated to this clean and virtually limitless energy source signals a shift toward making it a reality. Most of the fusion companies that have successfully raised over $100 million are located in the United States. However, a notable exception is Proxima Fusion, a German startup that has recently completed a €130 million Series A funding round, equivalent to approximately $148 million, led by Balderton Capital and Cherry Ventures. This new funding elevates Proxima's total public and private investments to over €185 million ($200 million), positioning it as a serious contender in Europe’s quest for an alternative to traditional fission energy, which relies on uranium and other imported fissile materials. The stakes are high, as the pursuit of fusion technology is crucial for energy security across the globe. “By the early 2030s, we will witness leading fusion companies emerge in each geopolitical region,” predicted Francesco Sciortino, Proxima’s CEO and co-founder, during an interview with TechCrunch. Prior to this funding, Proxima was limited in its growth potential, having raised only €20 million ($21.7 million) in its seed round back in April 2024. Since then, the company has shared its plans for a functional fusion power plant in a peer-reviewed publication. The research supports the use of stellarators, a reactor type that confines hot plasma within a twisted magnetic field, enabling fusion without the need for plasma current—unlike the more common tokamaks, which can be less stable. Proxima has developed its own Stellaris design, a significant achievement that was reached in just half the time initially expected, according to Sciortino. The success of this funding round was facilitated by the high demand from investors, allowing the company to choose the right partners for its next stages of development. Both leading investment firms have substantial capital to support future rounds, with Balderton having raised $1.3 billion for its Early Stage Fund IX and Growth Fund II, while Cherry Ventures closed a $500 million fund in early 2025 for early-stage investments and follow-ons. Looking ahead, Sciortino anticipates the need for continued venture capital investment to guide Proxima through to 2031, at which point it aims to explore other funding avenues. The immediate focus, however, is on achieving significant milestones, including a critical hardware demonstration slated for 2027. Funding is seen as essential, with investors recognizing that they are part of a definitive journey rather than an open-ended venture. Ian Hogarth, a partner at Plural, has invested in Proxima multiple times, describing it as a “big shot.” He emphasizes the appeal of a nuclear fusion future for Europe, stating, “Proxima represents a unique chance to decarbonize and meet the stable energy demands of the world while positioning Europe as a leader in the energy transition.” The funding round attracted a distinctly European investor base, with notable participants including Bayern Kapital, Club degli Investitori, and several others focused on deep tech and climate solutions. Sciortino reflects on Proxima's European identity, stating, “We see ourselves as thoroughly European, not just German.” The company operates from its headquarters and lab in Munich, having spun off from the Max Planck Institute of Plasma Physics, while also collaborating with institutions in Switzerland and the UK. Sciortino, who has a background in physics and has worked extensively in fusion research across Europe and the US, expresses a commitment to building a promising future in Europe.