Starmaker One: Europe’s First Fusion-Focused Venture Capital Fund

This article has been translated using artificial intelligence

As part of the Future Trends Forum on fusion energy, the Bankinter Innovation Foundation brought together more than twenty leading national and international experts to explore the potential, challenges, and opportunities of a technology that could redefine the global energy landscape. One of the forum’s key moments was the presentation by Rory Scott Russell, General Partner at East X Ventures, who introduced Starmaker One –the first venture capital fund in continental Europe exclusively focused on the fusion energy industry.

Russell didn’t mince words: fusion is no longer a scientific promise -it’s becoming a strategic race. His thesis is clear: if energy defined the 20th century, the technologies behind fusion will define the 21st. And Europe, he warned, still has time to get in the game. With a career that spans science, energy markets, and venture capital, Russell has built a sharp investment thesis around one powerful idea: fusion isn’t just clean energy -it’s critical infrastructure.

If you’d like to watch Rory Scott Russell’s presentation, you can find it here:

Rory Scott Russell: “Investment in Fusion” #FusionForward

Why Fusion, and Why Now?

The push for fusion isn’t driven by idealism -it’s the result of a strategic analysis of today’s global context. According to Rory Scott Russell, fusion now sits at a unique intersection of technological, geopolitical, and economic forces, making it an investment opportunity unlike any other. “We’re not investing in fusion out of romanticism -we ran the numbers,” he says.

One of the key reasons is how closely fusion aligns with the strategic priorities of advanced governments: energy security, defense, and computing and AI capabilities. Fusion lies at the intersection of all three. Beyond being a clean alternative to oil and gas, it strengthens national sovereignty at a time of growing geopolitical fragmentation.

At the same time, critical enabling technologies for fusion -like high-temperature superconductors (HTS), high-power lasers, and advanced power electronics- are accelerating rapidly due to demand from adjacent sectors such as defense, data centers, and AI infrastructure. This cross-sector momentum is helping lower costs, shorten development cycles, and make fusion commercially viable faster than expected.

“We don’t believe the push for clean energy alone is enough. What’s really accelerating fusion is its convergence with defense and AI,” Russell notes.

Another defining factor is the shift in scale of institutional and government interest. In recent years, national fusion strategies have emerged in countries like the UK, Germany, Japan, South Korea, the United States, and China. These strategies go beyond research -they include public investment in pilot plants, startup incentives, and efforts to lead the global fusion supply chain.

Private capital is also surging. According to data shared by Rory, nearly $9 billion in private investment has flowed into fusion startups -half of it concentrated in the U.S. This contrasts with the approximately $90 billion in public funding accumulated globally since fusion research began. The message is clear: fusion is entering a new phase—technological scale-up.

East X Ventures has seen this momentum firsthand. After making its first fusion investments in 2021 and achieving close to a 5X return on its initial energy portfolio, the firm has now chosen to go all in.

“The question is no longer whether fusion will be viable -it’s who will be positioned to capture the value when it is.”

A Trillion-Dollar Industry

Fusion energy is not just a scientific bet. For Rory Scott Russell, it sits at the core of a new global industry valued at over $1 trillion—and potentially at a similar inflection point to the space race of the 1960s and ’70s.

The analogy is straightforward: the space race drove an estimated $1.6 trillion in public investment, which led to the development of a long-lasting industrial and technological ecosystem. In contrast, total public investment in fusion so far has barely reached $90 billion—a figure that, in Russell’s view, grossly underestimates the strategic and economic value of this emerging technology.

“We believe fusion will be to the 21st century what the space race was to the 20th. The difference is, this time the returns will be commercial—not just political or scientific.”

The logic is compelling: if governments are willing to invest at a national scale in strategic technologies—for energy, defense, or industrial competitiveness—then the private players leading the development of core components, services, and infrastructure will be in the best position to capture long-term value.

Fusion also has the potential to reshape entire sectors—from power generation and industrial production to high-performance computing and transportation. Not just as a clean energy source, but as a central node in a new global industrial ecosystem.

This awakening is already triggering real capital movement. More than 40 private companies worldwide are actively developing fusion technologies, backed by institutional investors, sovereign wealth funds, and large family offices. While many of them are based in the U.S., fusion ecosystems in Asia and Europe are beginning to gain momentum.

Still, not all investors recognize the opportunity with the same clarity. According to East X Ventures, fusion remains a small slice of global DeepTech investment, trailing far behind sectors like AI, quantum computing, or biotech.

“We’re at the beginning of a race to control the value chains of future energy. And like any tech race, those who move first will take most of the upside.”

That race is already underway. Companies in energy, engineering, and infrastructure—from major utilities to industrial players—are exploring partnerships with fusion startups to secure their position in the future fusion supply chain.

And in that race, Starmaker One aims to be the lever that enables Europe to participate not as a customer—but as a leading force.

Europe: Missing the Moment?

Despite having world-class research centers and a strong scientific tradition, Europe risks falling behind in the race to turn fusion into a viable industry. While the United States and China are rolling out clear national strategies and attracting specialized private capital, continental Europe -until now- had no venture fund solely dedicated to fusion.

Rory Scott Russell puts it plainly: outside the U.S., there are very few investors with the expertise -and risk appetite- to understand, back, and scale fusion projects with an industrial mindset. In fact, Starmaker One is the first European fund 100% focused on the sector. It’s a gap that reveals the disconnect between Europe’s scientific potential and its ability to turn that into market-ready innovation.

“We talk to a lot of startups who all say the same thing: the talent and tech are here -but the funding isn’t aligned with the timelines and risks of this sector.”

This gap between science and investment has real consequences: some of Europe’s most promising fusion teams are securing U.S. capital, partnering with Asian consortia, or relocating entirely outside the continent.

The paradox? Europe hosts major infrastructures like ITER in France and EUROfusion, but has lacked -until now- a coherent industrial strategy that integrates private investment, commercial engagement, and supportive regulation.

Meanwhile, other countries are moving decisively:

• The UK, with its STEP program and a clear commercialization focus.
• Germany, with its newly launched national fusion roadmap.
• The U.S., with a milestone-based program and over 30 private companies active in the space.
• China, already operating three government-led tokamaks, building a fourth, and leading the industrialization of key components.

China, in particular, embodies the opposite approach to Europe: massive investment, state-backed consortia, supply chain control, and a clear playbook for copying, adapting, and scaling Western technologies. Russell’s warning is clear:

“This isn’t just about building a reactor—it’s about mastering the entire industry that makes it possible.”

For Europe to play a meaningful role in this new energy paradigm, it will need more than great labs. It will require patient capital, coordinated strategy, and tight collaboration between governments, industry, and investors. Starmaker One is aiming to lead that shift.

“Fusion is not just clean tech—it’s critical infrastructure. If Europe doesn’t invest now, it will end up importing everything—from superconducting magnets to cooling systems. And it won’t be able to compete.”

What the Fund Looks for in a Fusion Startup

Investing in fusion isn’t about backing the flashiest new reactor. According to Rory Scott Russell, most startups in the sector won’t make it. The technical complexity, long timelines, and dependence on public funding make many business models hard to scale -or simply unviable.

That’s why at Starmaker One, the question isn’t “Can this technology work?” It’s “Can this company capture value within the global fusion supply chain?”

The fund’s thesis is to identify and back ecosystem builders, not just future reactor operators. As Russell puts it, the real winners won’t necessarily be the ones who light a star on Earth -they’ll be the ones who build the tools that make it possible.

“We’re looking for the enablers, not the dreamers. The companies building scalable solutions for the sovereign projects now taking shape.”

Starmaker One’s investment criteria focus on five key dimensions:

1. Critical Components & Defensible IP

The fund prioritizes enabling technologies: superconductors, lasers, cooling systems, sensors, advanced materials, automation, robotics, control systems… They look for companies that can become strategic suppliers to national programs or large public-private consortia.

Intellectual property is non-negotiable. Startups need to show that what they’re building is not only unique but also defensible and scalable at an industrial level.

2. Capital Efficiency & Asset-Light Models

In a sector traditionally defined by capital intensity, Starmaker One is looking for the opposite: agile companies with a low burn rate, able to make progress with limited resources and not entirely dependent on massive funding rounds.

They prefer asset-light B2B or B2G models with strong, defensible margins.

“We’re interested in those solving hard problems -not trying to own the entire stack. The key is to be mission-critical without taking on all the risk.”

3. Ability to Operate Within Public-Private Consortia

Many fusion opportunities will emerge through government-led projects. To seize them, startups need to know how to collaborate -join consortia, work with public agencies, and navigate regulatory and procurement processes.

The fund favors teams that already have experience in collaborative environments and understand how to engage in major public programs.

4. Technical Teams with Business Vision

Founding teams must master the tech -but also show execution capability, market understanding, and strategic vision. Fusion is deeply technical, yes -but it’s also about industry, policy, and market positioning.

“We don’t invest in papers. We invest in people who know how to build things others actually need.”

5. Global Scalability -From a European Base

While the fund is rooted in Europe, its portfolio is built to compete globally. It targets companies that can serve not only the European ecosystem but also clients in the U.S., Asia, and wherever fusion pilot projects are taking shape.

In short, Starmaker One isn’t looking for lab unicorns. It’s backing the industrial suppliers of the 21st century -companies ready to become foundational players in an industry that is just beginning to take shape.

Conclusion: The Opportunity Is on the Table

Rory Scott Russell’s presentation at the Future Trends Forum wasn’t a technical talk or a sales pitch—it was a strategic wake-up call. Fusion is no longer just a scientific pursuit. It’s an emerging industry backed by real investment, mature component technologies, and governments ready to launch sovereign-scale projects.

And yet, Europe still hasn’t boarded the train.

While countries like the U.S., China, South Korea, and the UK are rolling out integrated national strategies—with public funding, regulatory support, and specialized private capital—Europe remains stuck in a science-first mindset, with no clear industrial roadmap and a funding ecosystem that doesn’t fully grasp the sector’s potential.

The good news: there’s still time. Funds like Starmaker One prove it’s possible to design investment vehicles tailored to the sector’s complexity—focused on efficiency, defensible IP, and integration into strategic consortia.

The bad news: the clock is already ticking. And like in every tech race, those who show up late won’t compete—they’ll consume.

“The real question is: who will capture the returns when this all starts working?”

At the Bankinter Innovation Foundation, we continue to explore the technological, economic, and geopolitical forces shaping the future of energy. Because if Europe wants to be more than a bystander in this new energy era, it needs to act now—with vision, with investment, and with boldness.

This article is part of the broader analysis conducted by the Bankinter Innovation Foundation. The full report, Fusion Energy: A New Energy Revolution Underway, brings together insights from more than twenty international experts and outlines the five critical pillars needed to scale fusion energy as a climate, economic, and technological engine.

Download the report to discover how we can start building tomorrow’s energy system—today.

And if you’re eager to keep exploring this transformation, don’t miss the upcoming editions of our Fusion Forward series, where we continue to share, with clarity and vision, the key drivers shaping the energy future now in the making.

This article is part of the ongoing analysis by the Fundación Innovación Bankinter. The full report, “Fusion Energy: A Revolution in Progress,” brings together insights from more than 20 international experts and identifies the five critical levers to scale fusion as a climate, economic, and technological driver.

Download it here to explore how we can start building tomorrow’s energy system today.

And if you want to keep following this transformation, don’t miss the next articles in the Fusion Forward series – where we continue to bring the future of energy closer to society, with rigor, foresight, and purpose.