Oxford fusion pioneer risks running out of cash within months

Telegraph

20-07-2025

A British nuclear fusion pioneer has warned it risks running out of cash within six months as it races to raise millions of pounds in funding to secure its future.
First Light Fusion, which is based in Oxford, is in talks with investors to raise £20m after burning through tens of millions of pounds to develop its novel fusion technology.
The start-up, founded in 2011, had sought to develop what it called 'projectile fusion', developing a giant gas-powered gun that would fire a 5p-sized projectile at extreme speeds into a fuel source, sparking a fusion reaction.
However, the company abandoned plans to build a prototype reactor earlier this year as it struggled to raise funds.
The business is now seeking financing to supply its inventions to other fusion and technology companies. It has created what it calls an 'amplifier', a fuel capsule that can boost the power of nuclear reactions.
First Light had previously raised more than £75m from investors including Tencent and London-listed IP Group.
However, in company accounts signed off last month, First Light said it now only had cash reserves to continue to trade 'until mid-January 2026 whereupon additional funding shall be required'.
The business said it had secured £10m in March, in the form of a convertible loan, and was in talks for a £20m equity injection in the coming months.
However, that funding had yet to be confirmed, casting 'significant doubt on the company's ability to continue as a going concern'.
The accounts for First Light said it had £9.9m in cash at the end of March and had burned through £13.4m in the past year. It said it ultimately planned to raise £60m.
In April, The Telegraph reported that one of First Light's biggest investors had cut the value of its stake in the loss-making business by around 60pc.
Holy grail of clean power
Nuclear fusion aims to harness the kind of reaction that takes place at the heart of the sun, forcing hydrogen atoms together to release enormous amounts of energy.
It is seen as the holy grail of renewable power as it has the potential to deliver continuous power, with helium its only by-product.
Researchers have pursued fusion power for decades, but significant engineering and scientific challenges remain before a reactor can begin producing energy.
The scramble for funding at First Light comes despite Labour promising to invest £2.5bn in fusion research over the next five years with the aim of developing a working reactor by 2040.
On Thursday, Ed Miliband, the Energy Secretary, announced measures to ease planning rules for future fusion projects.
Several US fusion companies have raised hundreds of millions of dollars to develop the technology. Last month, Google agreed to buy 200 megawatts of power from an as-yet undeveloped fusion plant in Massachusetts.
Earlier this month, First Light confirmed its founder, Nicholas Hawker, had left the start-up. In a post on X, he said: 'I remain 100pc convinced that fusion can be done. But there are a set of hard truths that no amount of VC hype can disappear.'
David Bryon, First Light's chief financial officer, said the company had seen significant interest, both in the UK and internationally, in its £60m fundraising round.
He said: 'This is thanks to our strategic shift to a capital-light, high-margin business with applications across fusion, materials science, space and sovereign defence. With our unique capabilities, First Light is putting Britain at the heart of the global inertial fusion market.'