Months after reducing staff and operations due to fundraising difficulties, General Fusion’s call for investment has been answered. The Richmond, BC-based company secured $22 million USD ($30 million CAD) to support its LM26 fusion demonstration program and further its quest for commercially viable fusion energy.
CEO Greg Twinney described this funding as a strong endorsement of General Fusion’s technology, personnel, and mission, signifying a turning point for the firm after experiencing tough financial times. Investors included existing and new backers such as Segra Capital, PenderFund, Chrysalix Venture Capital, JIMCO, Gaingels, Thistledown Capital, Presight Capital, and Hatch. Some preferred shareholders participated in a “pay-to-play” deal to maintain their stakes, while others did not, resulting in reduced stake sizes.
Previously, Twinney had highlighted that General Fusion faced a critical financial juncture while nearing a technical milestone of demonstrating fusion at 10 million degrees, amid funding constraints. The company had cut one-fourth of its workforce and scaled back operations due to urgent financial challenges.
Twinney attributed the challenges to geopolitical and economic uncertainties, such as changes in US energy policy under President Donald Trump, which made investors cautious about endorsing complex, high-risk, capital-intensive technologies. Despite falling short of a $125 million USD fundraising goal, Axios reports that the new funds will sustain the company’s operations into the next year.
Founded in 2002 by physicist Michel Laberge, General Fusion is focused on creating a zero-carbon fusion power solution to satisfy the global demand for clean energy. Various global entities are vying in the fusion race, including national labs, academic bodies, and private enterprises.
Twinney expressed belief in the potential of fusion as a long-term global energy source. General Fusion had previously amassed around $350 million USD in funding, primarily from private sources, with government contributions from Canada. This included $25 million USD in Series F funding in 2023, after halting UK plans to center efforts in Canada.
In March, the company made strides by generating its first magnetized plasma in LM26 for fusion reactions. After reaching its 10 million degree milestone, General Fusion aims for 100 million degrees, but further funding will be needed to achieve “scientific breakeven conditions,” where the LM26 device produces as much energy as it consumes. Twinney called these potential advancements “monstrous milestones,” crucial for unlocking further investment and progressing towards its goal of launching a commercial power plant using Magnetized Target Fusion technology by the mid-2030s.