UK Government invests £20m in £100m Starmaker One, a private fusion investment fund

The UK government has taken a pioneering step in the global race for clean energy by investing £20 million to launch Starmaker One, the country’s first private fusion investment fund. This initiative is designed to accelerate the commercialisation of fusion energy, a technology that could provide limitless, clean power and transform the UK into a global energy leader.

What Makes Starmaaker One Unique?

Starmaker One is not just another government grant or R&D program. It’s a one-of-a-kind public-private partnership where the government acts as a cornerstone investor in a limited partnership managed by East X Ventures, the venture capital arm of London-based East X. East X Ventures will manage the fund, making investment decisions and supporting early-stage, science-led fusion companies with high-growth potential.

Unlike previous investments that often flowed through the British Business Bank or similar vehicles, this £20 million comes directly from the Department for Energy Security & Net Zero’s (DESNZ) Research and Development budget for 2024/2025. The government’s direct involvement is meant to “de-risk” the sector, giving private investors the confidence to contribute much larger sums—potentially raising the fund’s total to between £100 million and £150 million.

Here’s how the partnership is structured:

• The government provides an upfront investment, acting as a cornerstone investor and sharing both the risks and potential returns with private investors.
• East X Ventures, as the fund manager, is responsible for selecting and supporting fusion start-ups and scale-ups, guiding them from breakthrough science to commercial reality.
• The fund’s structure means the government will receive a share of any profits, aligning public and private interests and ensuring taxpayers benefit if the sector thrives.

Historically, UK fusion start-ups have struggled to access the capital needed to scale and commercialise their technologies. By investing directly alongside private venture capital, the government is sending a strong signal of confidence in the sector. This approach is the first of its kind for early-stage fusion investment outside the US and is expected to unlock further private capital, create thousands of high-skilled jobs, and keep the UK at the forefront of fusion innovation.

What Will Starmaker One Achieve?

• Help fusion businesses grow and commercialise at scale, supporting innovation in fields like magnetics, robotics, AI, and advanced materials.
• Train the next generation of scientists, engineers, and technicians, especially in regions like Nottinghamshire, Oxfordshire, and South Yorkshire.
• Strengthen UK supply chains and position the country as a major exporter of fusion technology to a global market expected to be worth trillions in the coming decades.

The investment in Starmaker One comes on the heels of a record £410 million government commitment to UK fusion research and international collaboration. With breakthroughs in fusion technology happening rapidly worldwide, the UK is determined to stay ahead by ensuring its companies have the funding and support they need to compete.

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