Germany's Proxima Fusion secures $2.7B valuation as Google backs Europe's reactor race
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Germany's Proxima Fusion secures $2.7B valuation as Google backs Europe's reactor race Leah Hodgson Tue, July 7, 2026 at 8:16 AM EDT 2 min read Proxima Fusion co-founder and CEO Francesco Sciortino Energy startup Proxima Fusion has raised €411 million from an investor group that includes Google and German energy giant RWE , to build Europe's first commercial fusion reactor. The deal, which values Proxima at €2.4 billion (about $2.7 billion), is the largest in a series of VC energy deals in Europe this year, driven by the continent's push for energy sovereignty. XTX Ventures and East X Ventures led the round, which included its Series A leads Balderton Capital and Cherry Ventures as well as strategic investors Google and RWE. Proxima, which raised €130 million in its Series A last year, signed an agreement with RWE in February to build its first stellator fusion power plant in Germany. Founded in 2023 as a spinout from the Max Planck Institute for Plasma Physics, Proxima Fusion is building a stellarator, a fusion reactor that uses magnets to hold superheated gas in place so atoms can fuse and release energy, the same process that powers the sun. Unlike traditional nuclear reactors, which split atoms and leave behind long-lived radioactive waste, fusion produces only shorter-lived waste. VC investment in European energy startups is having a revival this year, according to PitchBook data, with deal value so far reaching €1.9 billion. At the current pace, investment is projected to see its first annual increase since 2023. Of the largest deals to close this year, several are for startups focused on nuclear technologies. Italy's Newcleo raised €260 million and has since agreed to list on Nasdaq via a SPAC, valuing it at $2.4 billion. German fusion energy startup Focused Energy closed a $240 million Series A in May, also featuring RWE as an investor. Rising electricity demand, driven by electrification, industrial change and datacenter growth, has led to a growing appetite for nuclear as a carbon-free, sustainable energy source over the long term. Europe's push for sovereignty in tech, defense and energy is also increasing demand. Currently, the EU imports almost 60% of its energy. The European Commission is looking at nuclear to support the bloc's energy needs, announcing a €330 million funding package in May for research and innovation. In February, the UK published a framework to stimulate private investment in nuclear technologies. VCs are capitalizing on growing government support for nuclear technology. At the same time, they're betting that AI's soaring electricity demand will drive bigger returns on investments. That momentum isn't confined to fusion, or to Europe. VC is also pouring into fission technology worldwide. According to a recent PitchBook analyst note on the space, funding for nuclear fission startups reached an all-time high last year, with North America and Europe leading dealflow. This article originally appeared on PitchBook News
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