Kyoto Fusioneering (KF), a Japan-based fusion-power engineering company, has successfully raised 10.5 billion yen ($79 million) in an oversubscribed Series C funding round.

Led by existing investor, JIC Venture Growth Investments, the round welcomed a total of 17 investors, including 11 new supporters, KF said in a statement on Wednesday.

The new equity subscribers are JIC Venture Growth Investments, Coral Capital, DBJ Capital, Electric Power Development(J-POWER), INPEX CORPORATION, JAFCO Group, JAPAN CO-INVEST IV LIMITED PARTNERSHIP / SUMITOMO MITSUI TRUST INVESTMENT, JGC MIRAI Innovation Fund / JGC JAPAN CORPORATION, JGC MIRAI Innovation Fund / General Partner Global Brain Corporation, K4 Ventures GK(Kansai Electric Power Group), Mitsubishi Corporation, Mitsubishi UFJ Capital, MITSUI & CO, MOL PLUS, MUFG Bank and SMBC VENTURE CAPITAL.

This latest capital infusion brings Kyoto Fusioneering Ltd.’s total funds raised to 12.2 billion yen ($91 million).

The funding will be used to accelerate investment in research and development (R&D), recruit top-level global talent, including engineers and business professionals, secure working capital for large projects and business expansion.

KF said it will utilize the newly acquired capital and the expertise of its investors to accelerate R&D for its core products, including in-vessel components of fusion reactors and fusion plant engineering.

Additionally, KF plans to strengthen its business expansion in the United States and the United Kihngdom, aiming to be at the forefront of the practical application and industrialization of fusion energy.

“The attainment of fusion energy is a formidable challenge that cannot be realized by our company alone,

“It requires sustained support and collaboration from a wide array of stakeholders, including companies, research institutions, and investors,” said Takashi Nagao, Co-Founder and Chief Executive Officer of Kyoto Fusioneering.

By cultivating new relationships across various industries through this fundraising endeavor, he said the firm aims to harness innovative perspectives and significantly expedite its progress toward the early realization of fusion energy, delivering on its promise to revolutionize the energy landscape and bring humanity to new frontiers.

Fusion energy, the power source of the sun and stars, is anticipated to be the next-generation solution addressing energy and environmental challenges.

Alongside the ITER project, an international collaboration, fusion startups have gained momentum in fusion energy R&D, driven by increased private investment globally.

This trend has fostered efforts to expedite the realization and industrialization of fusion energy.

In Japan, the “Expert Committee on Fusion Strategy” has been active since September 2022.

On April 14 this year, during the government’s Integrated Innovation Strategy Promotion Conference, the committee unveiled a “Fusion Energy Innovation Strategy”, outlining a policy to expedite the industrialization and practical application of fusion energy.

“Japan has recently formulated a national strategy on fusion energy, highlighting the importance of establishing a domestic industry in the field, as global competition to develop and commercialize fusion power intensifies,

“Kyoto Fusioneering has been expanding its engineering solutions globally by utilizing the results of Japan’s long-standing fusion research and its network with domestic manufacturing companies, and is evaluated as a leading fusion startup in Japan,” said Yuki Kuwabara, Partner of IC Venture Growth Investments.

He said the firm has decided to make additional investment this time, expecting to accelerate its growth further with this funding round and contribute to the practical use of fusion energy.

As the company continues to grow, KF will prioritize sound governance and corporate management.

As a leading fusion power plant engineering company, KF focuses on the R&D of essential equipment and systems for fusion reactor peripherals and power plants.

Collaborating with companies and research institutions dedicated to fusion reactors and fusion energy, KF steadfastly drives the fusion energy industry towards commercialization.

Furthermore, KF has initiated strategic partnerships with various stakeholders to develop a robust supply chain network for fusion energy equipment and components, both domestically and internationally.

Established in 2019, Kyoto Fusioneering is a privately-funded technology startup with facilities in Tokyo, Kyoto, Reading (United Kingdom), and Seattle (United States).

The company specializes in developing state-of-the-art technologies for commercial fusion reactors, including gyrotron systems, tritium fuel cycle technologies, and breeding blankets for tritium production and power generation.

Kyoto Fusioneering collaborates with public and private fusion developers globally, striving to establish fusion as the ultimate energy source for humanity.

Other than JIC Venture Growth Investments, its existing investors are Coral Capital, Daiwa Corporate Investment, DBJ Capital, Kyoto University Innovation Capital, JAFCO Group, JGC MIRAI Innovation Fund and JIC Venture Growth Investments.

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