€130M Series A for Fusion Energy – Europe’s Largest Ever

German startup Proxima Fusion has announced a landmark €130 million (approx. $148 million) Series A round — the largest private fusion energy investment in European history. Led by Cherry Ventures and Balderton Capital, the round brings the company’s total funding to over €185 million, including EU grants. The investment marks a strong vote of confidence in Proxima’s goal to achieve commercial nuclear fusion by the end of this decade — a milestone long deemed unachievable. According to the IAEA, global private fusion investment has exceeded $6 billion, with approximately 10% flowing into Europe — a trend that’s rapidly gaining momentum.

What Is Nuclear Fusion – and Why Now?

Nuclear fusion involves merging two hydrogen atoms to form helium, releasing vast amounts of energy — the same process that powers the sun. Unlike nuclear fission, fusion is non-polluting, carbon-free, and generates no long-term radioactive waste. A report by the International Atomic Energy Agency calls fusion a potential clean, safe, and virtually unlimited energy source, provided the extreme physical conditions are met. Most fusion experiments today still operate at a negative energy balance, where more energy is consumed than produced. But rapid advancements in AI, quantum computing, and high-durability materials are bringing the dream of commercial fusion closer than ever — and positioning nuclear innovation as a key solution in the climate fight.

Proxima Fusion – Germany’s Bet on the Stellarator

Founded in 2023 as a spinout from the Max Planck Institute for Plasma Physics, Proxima Fusion is pioneering Stellarator-based reactor design — a system using fixed magnetic fields, unlike the dynamic Tokamak. According to the U.S. Department of Energy, stellarators offer higher magnetic stability and simpler maintenance, making them more viable for real-world deployment. Proxima integrates advanced AI, precision 3D printing, and magnetic design algorithms, accelerating development timelines. The company aims to build a demonstration reactor by 2028, and commercialize fusion in the 2030s. The envisioned full-scale fusion reactor could deliver hundreds of megawatts with zero emissions and high reliability — reshaping Europe’s energy supply.

Challenges on the Road to Commercial Fusion

Despite the optimism, significant technical hurdles remain. Fusion requires controlling plasma at temperatures of 100–150 million degrees Celsius — ten times hotter than the sun’s core. Few materials can withstand such extremes, and the magnetic systems required come with astronomical costs. Industry estimates place the price of a full demonstration facility at €300–500 million, while a large-scale commercial reactor could surpass €1 billion. Even with technical success, Proxima will need broad regulatory, engineering, and political cooperation to scale. Still, rising European investment — once skeptical of nuclear technologies — signals a shift. According to PitchBook, 2023 was the first year private fusion investment in Europe topped $1.5 billion — and Proxima is leading the charge.

Growing Support from Public and Private Sectors

Proxima’s successful funding round places it alongside top fusion contenders such as Helion Energy (over $600 million raised) and Commonwealth Fusion Systems (more than $2 billion). Unlike its U.S. peers, Proxima enjoys broad institutional support in Europe, including Horizon Europe grants and government incentives. Daniel Waterhouse of Balderton Capital emphasized: “Stellarators are more than just a technology — they are a geostrategic asset that can liberate Europe from dependency on Russian gas and Middle Eastern oil.” The company plans to hire an additional 300–500 engineers and expand its Munich facility fourfold by 2027, as it prepares to construct its demonstration reactor. New academic partnerships are also in development to advance key subsystems.

Conclusion: Will the Future of Energy Be Made in Germany?

Proxima Fusion sits at the intersection of technology, regulation, and climate policy. Its historic funding, public backing, and engineering vision position it as a top contender to bring commercial fusion to market within a decade. Germany — already a global leader in automotive and industrial technology — could soon lead in clean nuclear energy as well. If successful, by 2035 we could see German-built fusion reactors supplying power across Europe at under €0.05 per kilowatt-hour — with zero emissions. Such a shift could place Germany at the forefront of carbon reduction efforts while offering industry a clean, reliable, and secure energy alternative.