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.”
“With this financing, the company is now full speed ahead,” General Fusion spokesperson Danielle Johnson told BetaKit.
“The long-term view is that the world will run on fusion in the future.”
Greg Twinney,
General Fusion
Investors in the round 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.
“This was a mostly internal round, positioning the company to bring in more new investors in the next one,” Johnson said. “It also streamlined our cap table, which will set us up well for the next round.”
As first reported by The Globe and Mail and confirmed by BetaKit, 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—including Temasek and GIC—saw their stake sizes diminish. While longstanding backer BDC Capital also did not participate, its stake was not diluted due to protections it secured after leading the company’s two previous financings.
Segra Capital chief investment officer Adam Rodman and PenderFund chair Kelly Edmison are joining General Fusion’s board as part of the round.
Johnson said that this capital will fuel LM26 operations and help General Fusion hit its next major technical milestone: demonstrating fusion at temperatures of 10 million degrees Celsius. She said the company has already hired back some of the team members it laid off and is bringing on new staff to support these plans.
According to The Globe, General Fusion was last valued at $425 million USD in 2023. While this new deal does not reset the valuation, it gives participating investors the right to buy into the next financing at a discount. Johnson declined to confirm whether or not this was accurate.
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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 that 10-million-degree milestone 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.
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.
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“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. With this round, General Fusion hasd now raised approximately $372 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.
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.
UPDATE (08/22/2025): This story has been updated to include additional information and commentary from General Fusion.
Feature image courtesy General Fusion.