Lowercarbon Capital Raises Second Fund for Nuclear Fusion Energy Startups

Chris Sacca's Lowercarbon Capital is raising a second fund dedicated to backing nuclear fusion energy startups, the venture firm announced at the SOSV Climate Tech Summit on Thursday. The new fund aims to build on the success of the firm's first 250 million fusion-geared fund, which was raised in 2022. According to a source, the second fund is intended to be larger than the first. Lowercarbon Capital has already demonstrated its commitment to the fusion industry by backing leading startups such as Commonwealth Fusion Systems and Pacific Fusion. The firm's investment in Commonwealth Fusion Systems has yielded significant results, with the company raising 863 million earlier this year, following a 1.8 billion Series B round in 2020. TechCrunch has documented a dozen fusion startups that have raised over 100 million, highlighting the growing interest in this emerging technology. Industry experts, including Vinod Khosla, remain optimistic about the potential of nuclear fusion to revolutionize the energy sector. "We believe that a breakthrough is just around the corner," said Vinod Khosla, a well-known climate VC. "Several advances are showing promise of delivering a commercially viable fusion reactor." However, building these reactors is a costly endeavor, with Commonwealth Fusion Systems' latest funding round highlighting the significant investment required to bring this technology to market. Lowercarbon Capital's decision to raise a second fund reflects the growing confidence in the fusion industry. The firm's first fund was dedicated to supporting startups working on fusion technology, and the new fund is expected to follow a similar strategy. While the exact size of the second fund has not been disclosed, sources indicate that it will be larger than the first. The nuclear fusion industry has made significant progress in recent years, with several startups demonstrating promising results. Commonwealth Fusion Systems, for example, has developed a compact fusion reactor that uses superconducting magnets to confine and heat plasma. This technology has the potential to provide a nearly limitless source of clean energy, making it an attractive option for companies looking to reduce their carbon footprint. As the industry continues to evolve, Lowercarbon Capital's second fund is expected to play a significant role in supporting the development of nuclear fusion technology. With a growing number of startups working on this emerging technology, the potential for breakthroughs and innovations is vast. As Vinod Khosla noted, "We are on the cusp of a revolution in the energy sector, and Lowercarbon Capital's second fund is a testament to the growing confidence in nuclear fusion."