Posco, Doosan join IMM-led bet on Japanese fusion startup

IMM Investment Japan has led a Series D funding round for fusion energy startup Kyoto Fusioneering, backed by Korean industrial heavyweights.

The investment was made through the Korea-Japan Fusion Fund, a cross-border vehicle established to connect Korean capital and industrial networks with Japanese deep-tech companies, IMM Investment said Tuesday.

Strategic investors in the fund include Posco Holdings, Posco International, Doosan, Hyundai Motor and GS E&C. Octagon Venture Partners participated as a financial investor, alongside Japanese regional banks and strategic investors.

Kyoto Fusioneering will use the proceeds to build and upgrade demonstration facilities and strengthen its research, development and manufacturing capabilities. The investment will also support its work on gyrotrons, high-powered microwave devices used to heat plasma in fusion systems.

IMM Investment Japan said it decided to lead the round based on the startup’s proprietary technology, global business platform and growth potential.

“The key significance of this funding is that it brings together major Korean strategic investors and a world-class Japanese technology company through a single investment platform,” an IMM Investment Japan official said.

“We will support the participants so that the investment leads to cross-border technological and business cooperation rather than ending as a purely financial investment,” the official added. “We will continue creating successful partnerships that connect the industrial capabilities of Korea and Japan.”

IMM Investment Japan plans to expand its cross-border investment strategy by combining its parent company’s investment expertise with Korea’s industrial and capital networks.

The firm will target promising Japanese companies across sectors including semiconductors, advanced manufacturing and energy, as well as intellectual property, content and entertainment.