General Fusion, the Canadian nuclear fusion start-up, has raised $22 million in fresh funding, offering the company a lifeline after months of financial strain and layoffs.
In May, the company cut at least 25% of its workforce and CEO Greg Twinney publicly appealed for funding. The latest round, described as “oversubscribed,” was structured as a “pay to play” deal, forcing existing investors to contribute in order to maintain their stakes. Participants included Chrysalix Venture Capital, Gaingels, Hatch, MILFAM, JIMCO, PenderFund, Presight Capital, Segra Capital Management, and Thistledown Capital. PenderFund and Segra also secured board seats as part of the deal.
While the funding provides short-term relief, the $22 million falls far short of the $125 million General Fusion was reportedly seeking. Adam Rodman, chief investment officer at Segra Capital, told The Globe and Mail the round was “the least amount of capital possible” to help the company reach its next scientific milestone.
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Founded in 2002, General Fusion has raised $440 million to date, according to PitchBook. Earlier this year, it activated its Lawson Machine 26 (LM26), a half-scale prototype of a commercial fusion reactor. The company hopes LM26 will eventually demonstrate “scientific breakeven” where energy output matches the energy input required to start the reaction, by 2026.
For now, the company says it is focused on reaching intermediary goals, such as heating plasma to 10 million and then 100 million degrees Celsius. But with limited funding, General Fusion may only have a narrow window to prove progress before facing financial uncertainty once again.
