The company gets $22 million in funds, which will allow them to continue its operations on fusion energy prototype, yet falls short of the target funding amount of $125 million.
General Fusion, a Canadian nuclear fusion company, has secured $22 million in follow-on funding from existing investors. The raise follows earlier cost-cutting measures, including a reported 25% reduction in staff in May 2024. The funding will allow continued operation of its LM26 fusion prototype but falls short of the $125 million target disclosed earlier this year.
The round, structured as “pay to play,” required participating investors to contribute in order to maintain equity stakes. Contributors include Chrysalix Venture Capital, Gaingels, Hatch, MILFAM, JIMCO, PenderFund, Presight Capital, Segra Capital Management, and Thistledown Capital. Two investors—PenderFund and Segra—have received board seats as part of the deal.
Since its founding in 2002, General Fusion has raised approximately $440 million, according to data from PitchBook. Its current platform is based on magnetized target fusion, a method that combines a magnetically confined plasma with mechanical compression. The system uses deuterium-tritium fuel and relies on steam-driven pistons to compress plasma encased in a liquid lithium shell.
In March 2024, the company announced the activation of LM26, a half-scale prototype of its planned commercial fusion reactor. At the time, General Fusion projected that the reactor could reach “scientific breakeven” by 2026. Breakeven is defined in technical terms as achieving net-zero energy gain, where the energy output from a fusion reaction equals the energy used to initiate it.
The latest funding will be used to continue LM26 testing. Immediate technical objectives include heating plasma to 10 million and 100 million degrees Celsius. These steps are considered precursors to breakeven.
The $22 million injection is expected to provide operational runway for only a limited period. Without significant results or follow-on capital, General Fusion may face renewed financial pressure in the coming quarters.
