Months after shedding staff and scaling back its operations amid fundraising challenges, General Fusion’s public plea for investment has been answered.
The Richmond, BC-based company has secured $22 million USD ($30 million CAD) in fresh financing to fuel its LM26 fusion demonstration program and advance its plans for commercially viable fusion power.
In a blog post, General Fusion CEO Greg Twinney claimed this is “a resounding vote of confidence in our technology, our people, and our mission,” and marks “a new day” for the 23-year-old firm after what he described as “one of the most challenging financial moments in [its] history.”
“This funding is a resounding vote of confidence in our technology, our people, and our mission.”
Investors in the financing included both new and existing backers like Segra Capital, PenderFund (via the Pender Growth Fund and Pender Small Cap Opportunities Fund), Chrysalix Venture Capital, JIMCO (the global investment arm of Saudi Arabia’s billionaire Jameel family), Gaingels, Shopify CEO Tobi Lütke’s Thistledown Capital, Presight Capital, and Hatch.
According to The Globe and Mail, the round was a “pay-to-play” deal. Some existing preferred shareholders bought their pro-rata shares to maintain their stakes in General Fusion, and most of those that did not saw their stake sizes diminish. Segra Capital’s Adam Rodman and PenderFund’s Kelly Edmison are joining General Fusion’s board as part of the round.
Just over three months ago, Twinney wrote in an open letter that the fusion energy developer stood “at a crossroads.” General Fusion was on the cusp of achieving an important technical milestone—demonstrating fusion at temperatures of 10 million degrees—while simultaneously facing a severe funding crunch.
At the time, Canada’s entrant in the commercial fusion race had laid off a quarter of its staff and scaled back its operations in the wake of “unexpected and urgent financing constraints.”
In an interview with BetaKit in May, Twinney attributed the company’s fundraising challenges to uncertain geopolitical and macroeconomic conditions, including shifting US attitudes towards clean energy under President Donald Trump, noting that this environment has left investors more wary of backing more complex, capital-intensive, and higher risk technologies.
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While this latest financing falls well short of General Fusion’s goal to raise $125 million USD, Axios reports that it permits the company to stay afloat and continue developing its technology through next year.
Founded in 2002 by physicist Michel Laberge, General Fusion aims to develop a commercially viable approach to generating zero-carbon fusion power to help meet global clean energy needs. Many players from around the globe are participating in the global race for fusion, from national labs to academic institutions and private companies.
“The long-term view is that the world will run on fusion in the future,” Twinney told BetaKit back in May.
Getting there has taken a lot of time and money. Prior to this round, General Fusion had raised approximately $350 million USD in total funding, three quarters from private investors and the remainder via government sources, like the feds and BC. That figure includes $25 million USD in Series F funding in 2023 when the company put its UK plans on hold to focus on Canada.
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In March, General Fusion took a major step towards its ultimate target by creating its first magnetized plasma in LM26, which is needed for its fusion reactions.
After it hits the 10-million-degree mark, General Fusion plans to set its sights on 100 million degrees. But the company will require more cash to reach “scientific breakeven conditions,” or the point where its LM26 fusion demonstration device is capable of producing an equal amount of energy to what it takes in—a key achievement the company is targeting on the path to commercial fusion energy.
Twinney claimed in May that these would be “monstrous milestones” for both General Fusion and the industry that could unlock even more capital for its next phase.
The fusion energy developer ultimately hopes to deploy the first commercial power plant based on its Magnetized Target Fusion technology by the mid-2030s.
Feature image courtesy General Fusion.