In a landmark move that signals a transformative shift in Europe’s energy ambitions, Proxima Fusion—the fastest-growing fusion energy startup on the continent—has announced the close of a €130 million ($150 million) Series A funding round. This represents the largest private investment in fusion energy ever recorded in Europe, positioning Proxima as a formidable contender in the global race toward commercial fusion power.

The funding round was co-led by Cherry Ventures and Balderton Capital, joined by a formidable lineup of climate and technology-focused investors, including UVC Partners, DeepTech & Climate Fonds, Lightspeed, and redalpine. With this new capital injection, the startup’s total funding now exceeds €185 million ($200 million) in combined public and private capital.

Founded in April 2023, Proxima Fusion is a spin-out from the Max Planck Institute for Plasma Physics (IPP), one of the most prestigious fusion research centers in the world. From its inception, Proxima has set its sights on a bold goal: to deliver the world’s first commercial stellarator-based fusion power plant. The company’s vision is rooted in cutting-edge physics and engineering, specifically building on the Wendelstein 7-X stellarator experiment, which is widely considered a key breakthrough in magnetic confinement fusion.

Fusion energy, long considered the holy grail of clean energy solutions, offers the promise of virtually limitless, carbon-free electricity without the long-lived radioactive waste or proliferation risks associated with fission. But the path to commercial viability has remained elusive—until now. Proxima’s technological approach hinges on simulation-driven design and high-temperature superconducting (HTS) technology, which together enable a more stable and efficient magnetic confinement system compared to traditional tokamaks.

Speaking on the breakthrough, Francesco Sciortino, CEO and Co-founder of Proxima Fusion, emphasized the strategic importance of fusion: “Fusion has become a real, strategic opportunity to shift global energy dependence from natural resources to technological leadership. Proxima is perfectly positioned to harness that momentum by uniting a spectacular engineering and manufacturing team with world-leading research institutions.”

The new funding will be directed toward a number of critical development milestones, notably the construction of the Stellarator Model Coil (SMC) by 2027. This is a key hardware testbed designed to validate Proxima’s HTS technology and manufacturing capabilities. In parallel, the company is negotiating with several European governments to finalize a site for its flagship demonstration facility, Alpha. The facility is slated to begin operations in 2031 and aims to achieve a net energy gain (Q>1)—a benchmark that would mark the first time a fusion device produces more energy than it consumes.

The project builds on recent progress by Proxima and its academic collaborators. Earlier this year, the startup, in partnership with IPP and the Karlsruhe Institute of Technology (KIT), unveiled Stellaris—the world’s first peer-reviewed stellarator design that integrates physics, engineering, and maintainability. This milestone has been lauded by experts as a pivotal moment in the global fusion industry, demonstrating Proxima’s ability to convert complex research into tangible engineering solutions.

Proxima’s operations span multiple strategic locations across Europe, including its Munich headquarters, the Paul Scherrer Institute in Switzerland, and the Culham fusion campus in the UK. The company has assembled a world-class team of over 80 scientists, engineers, and technologists, rapidly expanding as it scales toward commercial deployment.

Investors are hailing the startup as a catalyst for European leadership in deep technology and clean energy. “Proxima Fusion combines Europe’s scientific edge with commercial ambition, turning world-class research into one of the most promising fusion ventures globally,” said Filip Dames, Founding Partner at Cherry Ventures. “This is deep tech at its best, and a bold signal that Europe can lead on the world stage.”

Daniel Waterhouse, Partner at Balderton Capital, echoed the sentiment: “Stellarators aren’t just the most technologically viable approach to fusion energy—they’re the power plants of the future. Proxima has firmly secured its position as the leading European contender in the global race to commercial fusion.”

The implications of this development extend far beyond just one company. With geopolitical uncertainties and climate pressures mounting, Europe’s pursuit of fusion power reflects a larger strategic shift—from fossil fuel dependence to technological energy sovereignty. The Proxima model leverages existing industrial supply chains and decades of public investment in fusion research, accelerating the transition from scientific experimentation to commercial-scale energy production.

As Europe positions itself at the forefront of next-generation energy solutions, Proxima Fusion’s latest funding round underscores growing investor confidence in the commercial viability of fusion. With its eyes firmly set on a 2031 launch for its Alpha demonstration facility, the company is not just racing toward fusion—it’s racing toward a cleaner, more independent, and technologically advanced energy future.