Munich-based Proxima Fusion announced a €411 million financing round, bringing the company’s valuation to €2.4 billion and establishing Proxima as “the best-funded fusion company in Europe.”
The round was led by XTX Ventures and East X Ventures, with RWE and Google as strategic investors.
KfW Capital, SPRIND and Burda Principal Investments joined the round alongside returning investors including Plural, UVC Partners, Balderton, Cherry Ventures, DST Global Partners, Brevan Howard Macro Venture, Lightspeed, DTCF, redalpine, Leitmotif, Elaia, CDP Venture Capital, Bayern Kapital and the EIC Fund.
“German energy company RWE became an investor just months after signing an agreement with Proxima to partner on building the first stellarator fusion power plant on the site of a former nuclear fission power plant in Gundremmingen, Bavaria,” said Proxima.
“Google’s investment underscores continued interest in fusion as a potential source of abundant, carbon-free, firm energy over the long-term.
“One of the largest private investments in European technology this year – and the largest ever in European fusion – the round reflects growing recognition of fusion power as a strategic technology for energy security, economic resilience and industrial competitiveness.
“The financing provides the backing needed to build Alpha, Proxima’s net-energy stellarator demonstrator near Munich, Germany.
“Alpha is the critical bridge between decades of fusion research and commercial deployment. Led by Proxima in partnership with the state of Bavaria, the Max Planck Institute for Plasma Physics and RWE, the project will validate key technologies and accelerate the development of the world’s first fusion power plant later that decade.”
Francesco Sciortino, co-founder and CEO of Proxima Fusion, said: “Europe is racing with the United States and China to get to the first fusion power plant. Proxima’s financing demonstrates that Europe can not only invent breakthrough technologies, but also build globally competitive companies around them. Investors recognise both the urgency and the opportunity of what we’re doing and are backing us to develop a generational energy technology company.”
Proxima added: “In less than three years, Proxima has secured more than €650 million ($740 million), including €95 million in public grants.
“Just three months after signing its Memorandum of Understanding with the Free State of Bavaria, RWE and the Max Planck Institute for Plasma Physics, Proxima completed this €411 million financing round.
“The round exceeded its target of matching Bavaria’s commitment for €400 million public funding contribution to the company’s roadmap, illustrating how targeted public investment can catalyse private capital at scale.
“With this financing, Proxima’s focus will be on completion of the Stellarator Model Coil, expansion of high-temperature superconducting (HTS) cable and magnet production, and continued development of the engineering and manufacturing systems required for stellarators. Proxima will be hiring across engineering, manufacturing and operations to accelerate progress.”