Insider Brief
- The UK government is investing £20 million in Starmaker One, a new fusion energy venture capital fund, aiming to unlock over £100 million in private investment and bolster the UK’s leadership in clean energy technology.
- Managed by East X Ventures, the fund marks the first public-private fusion investment partnership globally and will support startups developing fusion-related technologies across magnetics, AI, robotics, and energy storage.
- The initiative supports the UK’s Plan for Change industrial strategy, targeting growth hubs like Oxfordshire, Nottinghamshire, and South Yorkshire while reinforcing the country’s fusion R&D commitment totaling £410 million to date.
The British government is investing £20 million into a new fusion energy venture capital fund, marking the first time a national government has partnered with a private fusion investment vehicle.
Starmaker One to Unlock Over £100M in Private Fusion Funding
The fund, called Starmaker One, is expected to unlock more than £100 million in private capital for the UK’s fusion sector, a fast-growing field that aims to harness the same energy process that powers the sun. The move is part of the UK’s broader strategy to secure energy independence and support economic growth through clean technologies, according to the government.
The initiative was announced April 3 by the Department for Energy Security and Net Zero, in collaboration with East X Ventures, which will manage the fund. Starmaker One is structured as a limited partnership, with the government acting as a cornerstone investor and entitled to a share of returns.
“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 in a statement. “We are backing both nuclear and fusion power, and today we take a step forward in growing this exciting industry.”
Government, Investors, and Scientists Align on Fusion’s Future
Fusion energy, unlike conventional nuclear fission, produces power by combining two forms of hydrogen under extreme heat and pressure, releasing vast amounts of energy with no carbon emissions and minimal waste. Advocates see it as a potential source of safe, abundant, and low-carbon electricity, but commercial deployment remains years away.
The UK government has identified fusion as a strategic industry, and the new investment aims to help startups and early-stage firms scale operations, develop products, and train workers in key disciplines including physics, engineering, and materials science.
“Fusion energy is a technology with enormous potential, and an industry in which the UK is already well established,” said Science Minister Lord Vallance. “This investment will help to unlock the funding the fusion industry needs to grow, which will boost regions across the UK.”
Fusion’s Potential: Clean, Abundant, and Strategic
The fund targets companies working in areas critical to fusion development, such as magnetics, industrial AI, robotics, energy storage, and advanced manufacturing. Initial investment will focus on hubs like Nottinghamshire, South Yorkshire, and Oxfordshire, where the UK Atomic Energy Authority operates major facilities.
Kerry McCarthy, Energy Minister, said the investment is “a clear example of our Plan for Change in action,” noting that it would support jobs for scientists, engineers, welders, and construction workers alike. “As countries around the world recognize the huge potential of fusion, breakthroughs in this technology are happening thick and fast, and we want to keep the UK at the forefront of the global race by helping projects to innovate and grow here, in turn driving economic growth.” she said.
The launch of Starmaker One builds on a £410 million government commitment announced in January to support fusion research and international collaboration. Independent research from London Economics suggests that every £1 invested in fusion yields nearly £4 in economic benefit.
Fusion already supports thousands of jobs in the UK and is central to the government’s industrial strategy for the Oxford-Cambridge Growth Corridor. If successfully commercialized, fusion could meet rising energy demands while positioning the UK as a global exporter of clean energy technology.
This notice does not constitute an invitation to invest. The fund is not available to retail investors.
