Chris Sacca’s venture firm Lowercarbon Capital is raising a second fund to support nuclear fusion energy startups. The announcement was made by the venture capitalist at the SOSV Climate Tech Summit on Thursday. This new fund follows the firm’s first fusion-focused fund, which raised 250 million dollars in 2022.
Lowercarbon Capital has previously invested in leading fusion companies, including Commonwealth Fusion Systems and Pacific Fusion. The firm is part of a broader group of climate-focused venture capitalists, such as Vinod Khosla, who maintain strong belief in fusion energy. These investors are confident that the necessary breakthrough to make fusion commercially viable is imminent, and several recent advances show promise in delivering that result.
However, developing fusion reactors remains an expensive endeavor. Commonwealth Fusion Systems raised 863 million dollars earlier this year, following a 1.8 billion dollar Series B round four years ago. In total, a dozen fusion startups have each raised over 100 million dollars. While Chris Sacca did not specify the target size for the second fund, a source indicated it is intended to be larger than the first.