Fusion startup Avalanche Energy Inc. has raised $29 million to develop reactors small enough to sit on a desk that it hopes can one day power satellites, underwater drones and remote bases.
The oversubscribed funding round was led by RA Capital Management and joined by new investor Overlay Capital and existing backers Congruent Ventures and Lowercarbon Capital.
Fusion offers the promise of abundant, clean energy, but the technical and engineering obstacles remain daunting, particularly to build reactors at such a small scale. While the funding round is modest, it’s another sign that investors are willing to pour money into the elusive technology. The
industry has attracted more than $9.7 billion, according to the Fusion Industry Association’s 2025 report, including $2.6 billion invested in the 12 months ending in June 2025.