Why is the EU avoiding SaaS hype?

Startup Feature
The Startup Powering EU’s Energy Shift

Proxima Fusion is one of Europe’s most ambitious energy startups. Based in Munich and spun out from the Max Planck Institute for Plasma Physics, the team is working to bring fusion energy out of the lab and into the European energy grid. Today, the startup annouced a €130 million Series A round, allegedly the largest private fusion investment round in Europe.

In early 2024, Proxima Fusion raised over €20 million in seed funding and €2.5 million in grants from the European Innovation Council, becoming the first fusion startup backed by the EU. 'The funding reflects the EU’s push to back private sector startups that support energy independence.

From Physics Lab to Startup Capital

Fusion energy works by combining atomic nuclei at extremely high temperatures, releasing large amounts of energy. Unlike nuclear fission, fusion does not produce long-lasting radioactive waste and carries a much lower risk of accidents.

It has long been viewed as the ideal clean energy source, but until recently, the science was seen as too complex for commercial use.

Proxima is betting on a different type of fusion device called a stellarator. Compared to better-known tokamak reactors, stellarators offer more stability over long operating periods. That makes them more promising for continuous energy generation, despite the challenge of building them.

The founding team includes PHD physicists and engineers from MIT who helped develop the Wendelstein 7-X, the most advanced stellarator ever built. Their goal has now moved from research to building the first commercially viable fusion power plant.

Europe’s New Energy Ambition

Proxima Fusion is more than a physics project. It reflects a broader push by European institutions to fund strategic technologies at the seed stage. The EIC’s backing of the startup shows how the EU is starting to treat deep tech as a critical sector rather than a long-shot bet.

Energy is a key focus. As Europe looks to cut emissions and reduce dependency on foreign gas and oil, fusion is being taken more seriously. By investing early, Europe is hoping to keep ownership of key infrastructure and IP as the field grows.

Proxima still has years of technical and regulatory work ahead before it can build its Alpha reactor. But if successful, it could position Europe as a global leader in fusion energy. Its Stellaris concept, combined with EU support, may offer a new blueprint for science-driven startups pursuing long-term impact.