Dec 20, 2022
Fusion Energy Capital is investing in a broad basket of private fusion companies and fusion-enabling technologies.
USA / December 20th, 2022 – Fusion Energy Capital (“FEC”) announced the launch of its fusion fund that will target investment in a broad basket of private fusion companies and directly enabling technologies. Founded by fusion advocates, FEC believes that fusion energy is the way to a sustainable, high-energy civilization. With over 45 private fusion companies in existence working towards commercialization, this unique fund will offer investors a way to participate in this exciting new industry.
The mission at FEC is twofold: advancing the commercialization of fusion energy by private companies, and creating opportunities for investment into this sector while reducing risk. Its fusion fund will for the first time allow investors to broadly index this space as well as gain exposure to technologies directly enabling fusion. By investing in companies with different approaches and at varying stages of development, FEC will ensure investment diversification, and maximize chances of success.
FEC plans to administer and operate different types of investment vehicles to seize the market opportunity in fusion. FEC's approach / investment strategy will revolve around a Venture Fund Series, but will remain flexible and include Special Purpose Vehicles, and other alternative investment strategies as the occasion warrants.
“In recent years there’s been a big uptick in investment into private fusion companies; but virtually all of it so far has amounted to choosing a single fusion ‘horse’ to bet on. We believe this method to be unacceptably risky, and more likely to result in investors missing out on opportunities. So instead of trying to successfully pick a single winner, we intend to invest in a basket of the most promising fusion energy companies. This will include everything from new startups to larger established companies on the verge of energy break even,” said Owen Lewis, Cofounder and Managing Partner.
The fusion industry has grown significantly in recent years, with around $5.1 billion being invested so far; over half of that since 2021. Fusion fuel is the most energy dense source we know of, containing millions of times more energy than coal and natural gas, and around 4 times more than current nuclear power (fission) fuels like uranium. Fusion energy will also be clean and carbon free, making it the ideal source of energy.
"Fusion energy offers not only a promising future of abundant and clean energy, but also a generational asymmetric investment opportunity. If commercial fusion is as successful as I believe it will be, this could be one of the best investments in history. Its like getting in on the ground floor of the lightbulb, the car, or the internet. We have a variety of fund formation strategies and there are always new opportunities on the horizon, so we encourage accredited investors to learn the basics about fusion from our publications, and reach out to learn more about investing," said Asher Hopp, cofounder of Fusion Energy Capital.
Energy is a multitrillion dollar industry today, with total use projected to grow almost 50% by 2050. Demand for electricity in particular is expected to triple from current levels over the next three decades due to widespread electrification and rising living standards. Simultaneous with this rapidly increasing demand is the goal of net zero carbon emissions by the middle of the century; a goal that fusion energy is uniquely qualified to meet. When fusion energy is commercialized, the industry has potential to reach valuations in the tens of trillions. Fusion Energy Capital is perfectly positioned to help make this future reality, and enable its investors to benefit from it.
Fusion Energy Capital was founded in 2021 by fusion advocates with a shared mission of advancing commercial fusion energy while creating opportunities for investors to participate in this exciting new industry.