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Avalanche Energy Inc. raised $29 million to develop compact fusion reactors aimed at powering satellites, underwater drones, and remote bases. Led by RA Capital Management, the funding round included new investor Overlay Capital and existing backers Congruent Ventures and Lowercarbon Capital.

The startup is focused on magneto-electrostatic fusion technology, which uses powerful magnets and high voltage to confine plasma. Avalanche aims to deliver reactors capable of producing 100 kilowatts of power by the early 2030s, with plans for a larger system for data centers.

The funding will also support FusionWERX, a test facility in Richland, Washington, opening in 2026, to advance fusion technology development. Avalanche's total funding now stands at $105 million, as the company targets specific applications for clean power amid rising electricity demand.