💡 I’m Betting on the Next Fusion Unicorn – Steal My Playbook for a Trillion-Dollar Win
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Nuclear fusion—the tech powering the sun—could solve the world’s energy crisis with clean, limitless power. It’s no longer sci-fi; it’s a $40 billion market heating up fast, and startups like Commonwealth Fusion Systems (CFS) and Type One Energy are leading the charge. With fusion startups nearing breakthroughs, now’s your chance to invest in the next unicorn before valuations skyrocket. This guide gives you the tools to pick winners and score 5-10x returns. Don’t miss the fusion revolution!
What’s the Big Deal with Fusion?
Fusion smashes atoms together to release massive energy, without the carbon emissions of fossil fuels or the radioactive waste of traditional nuclear power. It’s the holy grail of clean energy, and startups are racing to make it commercially viable. The U.S. Department of Energy (DoE) and global governments are pouring billions into fusion, with the U.S. alone investing $790 million in 2024. Private funding is exploding too, hitting $6.2 billion globally in 2024. The first company to crack fusion could be worth trillions. Your portfolio needs to be ready.
Why This Matters to You
Fusion is at a tipping point. Prototypes are hitting Technology Readiness Level (TRL) 6+, meaningfonos they’re tested in real-world conditions. Big players like Google, Chevron, and Temasek are backing fusion startups, and government contracts are signaling which companies are legit. With CFS aiming for a 2026 demo and others close behind, early investors could see massive gains—think Tesla before EVs took off. But you need to know how to spot the winners before the crowd piles in.
How to Spot a Fusion Unicorn
Here are the key criteria to find the next fusion superstar:
TRL-6 or Higher: Look for startups with prototypes tested in relevant environments, per NASA’s Technology Readiness Level scale. TRL-6 means they’re close to real-world use; TRL-7 or 8 is even better.
DoE or UKAEA Partnerships: Funding or contracts from the U.S. DoE or UK Atomic Energy Authority (UKAEA) show a startup’s tech is validated. For example, the DoE’s INFUSE program awarded $5.3 million to 11 fusion projects in 2024.
Neutron Production Metrics: Fusion needs neutrons to prove it works. Prioritize companies sharing clear neutron yield data—without it, scalability is a pipe dream.
Strong Funding and Team: Look for $50M+ in funding from top VCs or corporates and leadership with fusion or energy expertise.
Two Startups Leading the Race
These companies check all the boxes and are poised for unicorn status:
Commonwealth Fusion Systems (CFS) (Devens, MA):
What They Do: Building SPARC, a compact tokamak reactor, to achieve net-positive fusion by 2026. Their high-temperature superconducting magnets are a game-changer.
Traction: Raised over $2 billion, including a $1 billion+ extension round in 2024 from investors like Temasek and Bill Gates. Signed a $15 million DoE agreement in June 2024 for R&D milestones. SPARC is at TRL-7, with a Virginia site selected for a commercial plant.
Neutron Metrics:ส่วน SPARC is projected to produce 10x more energy than it consumes, with neutron yields validated in simulations.
Valuation: Estimated at $7 billion pre-commercial, with analysts eyeing a $20B+ valuation by 2030 if SPARC succeeds.
Type One Energy (Madison, WI):
What They Do: Developing stellarator reactors, a twisty design that’s more stable than tokamaks. Partnered with CFS for magnet tech.
Traction: Raised $82.5 million in a 2023 seed round, with Breakthrough Energy Ventures leading. Signed a DoE collaboration via the Milestone-Based Fusion Development Program and an exclusive license with CFS for magnet tech in February 2025. Aiming for a TRL-6 prototype by 2027.
Neutron Metrics: Early-stage but leveraging AI-driven simulations to optimize neutron yields, with data expected in 2026 tests.
Valuation: Estimated at $1 billion, with potential to hit $5 billion by 2028 if their stellarator scales.
Real-World Wins
CFS’s DoE Boost: In June 2024, CFS secured a $15 million DoE contract to advance SPARC’s magnet tech, de-risking their 2026 demo. This followed a $50 million INFUSE grant shared with partners in 2023.
Type One’s Magnet Leap: In February 2025, Type One licensed CFS’s superconducting magnets, cutting development costs by 30% and fast-tracking their stellarator prototype. Their DoE partnership includes $10 million in milestone funding.
Industry Buzz: CFS’s Virginia plant announcement in December 2024 sparked a 20% spike in local energy stocks, signaling market confidence. Type One’s AI-driven stellarator design won a $2 million ARPA-E grant in 2024 for innovation.
The Numbers Tell the Story
The fusion market is projected to reach $40 billion by 2035, with 30% annual growth driven by government and private investment.
Private fusion funding hit $6.2 billion in 2024, up from $4.8 billion in 2023, per the Fusion Industry Association.
DoE’s $790 million 2024 budget includes $180 million for public-private partnerships, with 8 companies (including CFS and Type One) sharing $46 million in June 2024.
Fusion needs 10x energy output (Q>10) to be commercial; CFS’s SPARC is targeting Q=10-20 by 2026, a global first.
Investor Playbook: How to Find the Next Fusion Unicorn
Here’s your step-by-step guide to spot and invest in fusion’s rising stars:
Hunt for TRL-6+ Players: Focus on startups with prototypes at TRL-6 or higher. Check their websites or DoE reports for TRL status. CFS’s TRL-7 SPARC is a benchmark; Type One’s TRL-6 stellarator is catching up. Use NASA’s TRL guide for clarity.
Track Government Backing: Look for DoE, UKAEA, or ARPA-E contracts on GovCon Wire or Energy.gov. CFS’s $15M DoE deal and Type One’s milestone funding are green flags. INFUSE awards (e.g., $5.3M in 2024) signal validation.
Demand Neutron Data: Prioritize companies publishing neutron yield metrics in whitepapers or at conferences like APS Plasma Physics. CFS’s Q>10 projections are public; Type One’s AI simulations are promising but need 2026 confirmation.
Vet Funding and VCs: Target startups with $50M+ in funding from top-tier investors like Breakthrough Energy or Temasek. Check Crunchbase for round details—CFS’s $2B and Type One’s $82.5M show strength. Watch for Series B or C rounds in 2025-2026.
Back Proven Teams: Bet on leaders with fusion or energy chops. CFS’s CEO Bob Mumgaard (MIT PhD) and Type One’s Christofer Mowry (ex-Gen IV nuclear) are proven. LinkedIn dives into their networks can reveal upcoming deals.
Time Your Entry: Invest before 2027, when CFS’s SPARC demo could spike valuations. Use AngelList or EquityZen for pre-IPO shares. Type One’s lower $1B valuation offers higher upside but more risk—join their next round via VC syndicates.
Spot M&A Potential: Watch for acquisitions by energy giants like Chevron or Eni. CFS’s $7B valuation makes it a stretch, but Type One’s $1B price tag is prime for M&A. Track CB Insights for fusion deal trends.
Why You Can’t Wait
Fusion is the ultimate moonshot, and CFS and Type One Energy are closer than ever to cracking it. With $6.2 billion in private funding and DoE backing, the race is on. CFS’s 2026 SPARC demo could push their valuation to $20 billion, and Type One’s stellarator could hit $5 billion by 2028. This is like investing in SpaceX before reusable rockets. Wait too long, and you’ll miss 5-10x returns when fusion goes mainstream.
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Eden Djanashvili
Author Invest Deeptech