Fusion energy startup Avalanche Energy has raised $29 million in a new funding round to accelerate the development of its compact fusion energy devices. The capital will support the company’s efforts to move fusion beyond large, centralized reactors and toward smaller, modular systems with near-term commercial applications.

Fusion has long been viewed as a potential source of abundant, low-carbon energy, combining hydrogen atoms to release power without the carbon emissions of fossil fuels or the long-lived radioactive waste associated with nuclear fission. Despite decades of research, commercial-scale fusion has remained elusive due to the extreme temperatures and pressures required to sustain the reaction.

Compact Devices as an Alternative to Mega-Scale Reactors

Founded in 2018, Avalanche Energy is pursuing a different pathway by developing compact fusion machines designed to be significantly smaller and more flexible than traditional fusion reactors. Its product roadmap includes the Orbitron, a desk-sized fusion device capable of producing between 1 and 100 kilowatts of electric power.

According to the company, the modular nature of its technology opens up a wide range of potential use cases, including power supply for data centers, remote and off-grid locations, advanced propulsion systems, and other environments where conventional grid access is limited or unreliable.

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Commercial Test Facility and Q>1 Fusion Milestone

Avalanche said the new funding will be used to expand its commercial-scale fusion test facility in Richland, Virginia, and to advance development of its next-generation compact fusion systems. The facility is expected to become operational in 2027 and will host the company’s planned deuterium-tritium Q>1 test program.

If successful, the test would mark the world’s first demonstration of a net-energy compact fusion system, meaning it would produce more energy than it consumes during the fusion process. In addition to energy generation, the company sees applications in material irradiation, mobile power generation, and eventual integration into the electric grid.

Leadership Highlights Path Toward Commercial Readiness

Robin Langtry, CEO and co-founder of Avalanche Energy, said the company has made significant progress in plasma physics over the past six months, allowing it to move rapidly toward the next phase of development.

He noted that the new funding will help Avalanche pursue licensing for commercial-scale fusion operations while preparing for its deuterium-tritium test program, which the company views as a critical step toward validating its technology at scale.

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Investor Support Signals Confidence in Near-Term Applications

The funding round was led by RA Capital Management, with participation from new investors including 8090 Industries and Overlay Capital, as well as existing backers such as Congruent Ventures, Founders Fund, Lowercarbon Capital, and Toyota Ventures.

Kyle Teamey, Managing Partner for Planetary Health at RA Capital Management, said Avalanche stands out in the fusion sector for its ability to iterate quickly on compact, modular designs and to pursue near-term revenue opportunities even before achieving full energy break-even.

As global interest in firm, zero-carbon power sources continues to grow, Avalanche’s approach reflects a broader shift within climate and energy innovation toward scalable technologies that can reach commercial markets faster than traditional large-scale infrastructure projects.

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