Sparks - IP Group

First Light Fusion, a UK inertial fusion company, has completed a £25m first close of its latest funding round, led by East X Ventures and its Starmaker One fund alongside a strategic investment from the UK Atomic Energy Authority (UKAEA). Existing shareholders, including IP Group and Hostplus-managed funds, also participated. Following the close, IP Group retains an undiluted beneficial interest of 28.3% in First Light, with a further 17.3% held via its managed funds.

The round will accelerate commercial development of First Light’s FLARE Fusion Energy concept, a reactor-compatible approach to Inertial Fusion Energy that targets a simpler and lower-cost pathway to fusion power. The involvement of UKAEA as a strategic investor is notable, providing both third-party validation of the technology and alignment with the UK government’s long-term energy ambitions.

As highlighted in our recent note on IP Group, First Light has been seeking to secure external funding following its pivot to a capital-light business model. As such, this successful first close represents a meaningful inflection point for the company. The participation of a specialist fusion investment fund alongside a government-backed authority further underscores growing confidence in the commercial viability of the FLARE concept.