Fusion Startups Draw EUR 13 Billion, But Funding Concentrated in US and China
Private fusion funding reached EUR 13 billion across 77 companies by September 2025, with the US accounting for 53% and China 34%. The EU holds just 5% of global funding despite strong research capabilities. The sector's high capital needs and long timelines make it a challenging but growing startup category.
Private fusion investment has accelerated sharply, with the sector's cumulative funding jumping from EUR 1.5 billion in 2020 to EUR 13 billion by late 2025. The Fusion Industry Association reported a 178% year-over-year increase in funding for the 12 months leading up to July 2025, signaling a major shift in investor appetite for a technology once considered perpetually decades away.
The funding landscape is highly uneven, with the United States and China controlling 87% of global private capital. The EU's 5% share stands in stark contrast to its strong public research infrastructure. Magnetic confinement approaches, particularly tokamaks, have attracted the vast majority of investment, with four companies—Commonwealth Fusion Systems, China Fusion Energy, NEO Fusion, and TAE Technologies—holding roughly half of all private funding.
The concentration of fusion funding in the US and China could shape which regions first deploy commercial fusion power, potentially creating new energy dependencies for Europe and other regions. If fusion delivers on its promise of abundant clean electricity, early movers may gain significant economic and geopolitical advantages. However, the sector's high capital requirements and long timelines mean near-term societal impact remains limited, with benefits likely accruing first to data centers and industrial users rather than residential consumers.