Tuesday, 8 April 2025
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Starmaker One is a limited partnership in which the government is a cornerstone investor. The fund has potential to raise between GBP100 million and GBP150 million overall (including the GBP20 million from the Department for Energy Security and Net Zero) for investment into fusion-related technology. East X Ventures – the venture capital arm of East X, a London-based quantitative systematic research and investment firm operating across global commodity markets – will act as fund manager.
Investment in Starmaker One, the government said, signals the first early-stage fusion energy venture capital fund outside the USA and the first of its kind to partner with government as an investor.
It is expected the upfront investment – from the government’s existing Research and Development budget for 2024/2025 – will unlock further investment from the private sector as the fusion industry grows. It follows on from a government commitment for a record level of GBP410 million, announced in January, for UK fusion research and collaboration with other countries.
“Companies in the UK have often identified lack of access to capital as a barrier to scaling up and commercialising their businesses,” the government said. “An injection of cash from government will give the private sector confidence to invest in fusion, developing its vast potential as an unlimited source of energy and ensuring the UK continues to compete in the global fusion race.”
The government said the funding boost will help small fusion companies provide training for their workforce in key areas such as physics, engineering and chemistry. It will also support companies to develop technologies and capitalise on the opportunities of fusion energy in markets such as magnetics, industrial AI, robotics, healthcare, transportation and energy storage.
“Fusion has the potential to provide us with energy security, whilst attracting the best technologies to our shores and training up the next generation of British scientists and engineers,” said Energy Secretary Ed Miliband. “We are backing both nuclear and fusion power, and today we take a step forward in growing this exciting industry.”
The government’s investment in Starmaker One was welcomed by the United Kingdom Atomic Energy Authority, which carries out fusion energy research on behalf of the UK government.
“UKAEA welcomes the new fusion fund, Starmaker One, backed by UK government and managed by East X Ventures,” said Tim Bestwick, UKAEA Chief Technology Officer and Deputy CEO. “The field of fusion is a powerful driving force for innovation, and we’re just starting to see the expanse of opportunity this is bringing. The Starmaker One fund will help develop this innovation into exciting new businesses.”
