Fusion Energy Startups Are Running Out of Money

Commonwealth Fusion Systems, which raised $1.8 billion in 2021, has postponed its next round of fundraising indefinitely. TAE Technologies cut 15% of staff after failing to secure a planned $500 million investment. The slowdown reflects a shift in how venture capitalists are thinking about funding for big, ambitious technology projects. Unlike software companies that can launch products quickly, fusion energy projects need money to keep flowing steadily for ten years or more — which means they are highly vulnerable when investors lose interest or become more cautious. This pattern has played out before. In the late 2000s, there was a rush of enthusiasm and money for clean energy startups, but much of it dried up once investors started asking harder questions about whether the projects would actually work and make money.