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For decades, fusion energy has been considered a distant scientific ideal, but a new generation of startups is transforming it into a near-term technological reality. With over $6.7 billion in accumulated investments, these companies are exploring diverse and innovative approaches to achieve clean, safe, and virtually limitless energy within years rather than decades. Unlike large international projects like ITER, these startups emphasize agility, industrial innovation, and high-risk, high-reward technologies, creating a vibrant global ecosystem with key hubs in the US, UK, Germany, and France.
These startups employ varied methods including advanced magnetic confinement, aneutronic fusion, inertial confinement using high-power lasers, and novel Z-pinch techniques. Leading companies such as Commonwealth Fusion Systems, Helion Energy, and TAE Technologies have secured over a billion dollars each and aim to demonstrate net-positive energy or grid-connected fusion power by the late 2020s or early 2030s. Meanwhile, European startups like Marvel Fusion, Tokamak Energy, and Renaissance Fusion pursue alternative designs, while Spain contributes through engineering collaborations and strategic alliances. Although Asia excels in state-backed fusion research, it lacks comparable independent fusion startups with venture capital backing.
This entrepreneurial movement is accelerating fusion development by supplementing large consortia with private investment, applied engineering, and industrial design. The fusion energy landscape is shifting from pure science to business innovation, making it possible that the first commercially viable fusion reactor connected to the grid may come from a startup rather than a state project, heralding a new era in global energy.
More than $6.7 billion in investment and disruptive technologies are powering a handful of startups that could make fusion energy a reality in the next decade. Meet the ones that are setting the global pace
The new generation of startups that promises the energy of the future
For decades, fusion energy has been a scientific utopia. But that’s changing. A growing number of startups are turning fusion into a technological challenge with a clear horizon: to achieve clean, safe and inexhaustible energy in a matter of years, not decades. With more than 6,700 million dollars in accumulated investment, these companies are exploring alternative routes to large consortiums such as ITER, betting on agility, industrial innovation and high-risk and high-potential technologies.
A global career with multiple paths
These startups don’t follow a single approach. Some improve on classic magnetic confinement systems with new generations of magnets; others experiment with techniques such as Z-pinch or aneutronic fusion. The diversity of strategies reflects a global ecosystem in full effervescence, with key nodes in the United States, United Kingdom, Germany and France. Below, we review the most promising due to their technical strength, their level of investment and their proximity to key milestones:
Commonwealth Fusion Systems (USA)
A spin-off of MIT, it develops the SPARC tokamak, based on high-temperature superconducting magnets. It has raised more than $2 billion and has started construction of the SPARC reactor, with the goal of demonstrating net positive energy by 2030.
Helion Energy (USA)
Based in Washington, he proposes a fusion system using pulsed magnetic fields and plasma accelerators. It has secured more than $1 billion in funding and plans to generate electricity for the grid in 2028, with a deal to supply power to Microsoft.
TAE Technologies (US)
Located in California, it works on an aneutronic fusion using protons and boron-11. It has raised more than $1.2 billion to develop a near-zero-waste system and aims to commercialize its technology in the next decade.
Marvel Fusion (Germany)
Based in Munich, it is committed to inertial confinement with ultra-high-power lasers. It has raised more than €110 million, with support from Siemens Energy and EQT Ventures, and plans to demonstrate its concept in existing laser installations by 2027.
Xcimer Energy (USA)
Based in Colorado, it develops the use of KrF (krypton fluoride) lasers for fusion. It has raised $100 million and received $4 million in federal funding to advance the efficiency of inertial fusion lasers.
Zap Energy (US)
Based in Seattle, it develops a magnet-free approach, using the so-called Z-pinch effect. It has raised $130 million and has begun operations of its “Century” fusion test rig, moving into a commercial fusion power plant.
Tokamak Energy (UK)
A pioneer in compact spherical tokamaks, it combines optimized design and high-temperature superconducting magnets. It has raised $125 million to commercialize transformative fusion and magnetism technologies.
First Light Fusion (UK)
Based in Oxfordshire, it uses impact fusion technology, firing projectiles at ultra-high velocity to generate fusion conditions. It is collaborating with NASA and the Open University on applications of its technology in high-speed impact testing.
Renaissance Fusion (France)
Located in Grenoble, it develops a 3D Estelarator , combining complex geometries and superconductors. It has raised €32 million to advance the development of its fusion reactor concept.
Proxima Fusion (Germany)
Spin-off of the Max Planck Institute for Plasma Physics (IPP), focused on quasi-isodynamic estelarators. It has raised €20 million and published open-source plans for a fusion power plant, with the aim of demonstrating net fusion energy by 2031.
Gauss Fusion (Germany)
A startup founded by private companies from Germany, France, Italy and Spain, it stands out in the competitive landscape of fusion startups for its innovative approach, solid scientific base and pragmatic vision. In an environment where public-private cooperation is key, Gauss Fusion also stands out for its ability to attract investment and establish strategic alliances.
And Spain? Startups that are already part of the global ecosystem
Although no Spanish startup is currently competing to lead the development of reactors, there are local players integrated into the international value chain. From engineering solutions to emerging industrial projects, Spain is already positioned as a strategic partner:
- Obuu collaborates with ITER in the development of precision tooling.
- Hiperbaric leads the RODAS project by applying artificial intelligence to advanced manufacturing processes.
- Gauss Fusion, already mentioned, is owned by the Spanish engineering company IDOM, and seeks to build an operational fusion plant in Europe by 2045.
You can delve into these initiatives in our previous article: Spain and fusion energy: an expanding ecosystem.
What about Asian startups?
Although Asia is a key region in the development of fusion energy – with state-owned projects such as EAST (China), KSTAR (South Korea) or JT-60SA (Japan) – most initiatives follow a model of public or institutional financing and management. Today, there are very few independent Asian startups that operate with venture capital structures, transparent roadmaps, and international communication comparable to their counterparts in the U.S. or Europe.
For this reason, the Asian fusion ecosystem, although highly advanced in scientific terms, is not yet represented at the core of the global fusion entrepreneurial movement, which is mainly centred on the MIT–California–Oxford–Munich axis.
What’s at stake
These startups are redefining the global energy future. They compete – and in many cases collaborate – with large international consortiums. Its role is not to replace ITER, but to speed up the process, bring faster solutions and demonstrate that there are other paths to commercial merger.
What used to be just basic science, is now applied engineering, private investment and industrial design. The career is no longer just scientific: it is technological, business and business models.
In the not-so-distant future, the first grid-connected fusion reactor may not come from a state consortium, but from a startup. And that changes everything.
