"Stellar Fusion" Closes 500 Million Yuan Series A, Pioneer in Field-Reversed Configuration Fusion | Xinxing PORTFOLIO

On June 12, leading controlled nuclear fusion technology company Xeonova announced the completion of two Series A rounds totaling 500 million yuan. New investors include GP Capital, Fortune Venture Capital, Cornerstone Capital, HLC, Shilin Group, and the Shanghai Science and Technology Innovation Fund, a subsidiary of Shanghai State-Owned Assets Investment. Heart Capital and several existing shareholders continued to participate in the follow-on rounds.

Xeonova: A Pioneer in Field-Reversed Configuration Fusion

Xeonova is a cutting-edge technology company established through technology transfer from the University of Science and Technology of China, focused on prototyping high-performance Field-Reversed Configuration (FRC) fusion devices and advancing the engineering of compact, low-cost fusion systems.

Founder Professor Sun Xuan led China's first FRC device, KMAX, and brings nearly 30 years of FRC fusion research experience, with extensive work on renowned devices including TAE C2 and FRX-L. The core team comprises professors and graduate students from USTC, with PhDs accounting for over 40% of the team.

As China's FRC pioneer, Xeonova leads in device construction and experimental practice. In February 2025, Xeonova's first pulsed FRC experimental device, Xeonova-1, achieved plasma discharge — from installation to successful discharge in under two months, setting a new domestic record for fusion device construction speed. In January 2026, the advanced field-reversed magnetic mirror fusion device FLAME achieved its first plasma discharge, marking Xeonova's formal entry into the physics experimentation phase.

FRC Development Ignites Fusion Boom

In October 2025, nuclear fusion was formally added to the national "15th Five-Year Plan" core list of "future industries," triggering an intensive wave of private-sector fusion financing in China. The main technical pathways are tokamak and field-reversed configuration. FRC's high beta value and simple magnetic topology enable shorter construction timelines, lower costs, and greater economic feasibility for FRC fusion reactors. Two of the world's three highest-valued commercial fusion companies employ the FRC approach — Helion recently announced a $465 million Series G at a post-money valuation of $15.5 billion.

Xeonova will use this funding to advance its pulsed-compression FRC fusion pathway: first generating a high-beta, magnetically self-organized FRC plasma in a large formation region, then subjecting it to adiabatic heating through staged magnetic compression to rapidly push density and temperature into fusion-relevant parameter regimes. This approach is centered on compact architecture, high beta, and relatively low system cost.

On the physics side, the team draws on USTC's years of FRC theoretical and experimental work, with deep understanding of formation dynamics, magnetic flux and energy conservation during compression, and compression timing and stability matching. On the engineering side, Xeonova translates this physics knowledge into high-power pulsed power supplies, compression magnets, and formation and diagnostic systems — bridging the gap from principle to device.

Plans and Strategic Priorities Post-Funding

Following this round, Xeonova will accelerate the design and construction of its X-series pulsed-compression FRC high-parameter validation devices. Building on FLAME's successful discharge, the company will systematically advance plasma heating, diagnostic, and control system upgrades, improving key metrics including plasma temperature, density, and confinement time.

The company targets achieving megawatt-scale fusion power output and Q>1 energy gain around 2030, and aims to develop a hundred-megawatt fusion engineering reactor and advance toward commercial grid connection by approximately 2035. (XEONOVA)

Heart Capital was founded in 2022 as a venture capital fund focused on investing in China's early-stage technology startups.

The Heart Capital team comprises founding partners and core investors from Lightspeed China, alongside seasoned investors from industry. Past investments include MetaX (688802.SH), Xpeng Motors (NYSE: XPEV, 09868.HK), Full Truck Alliance (NYSE: YMM), Sunmi Technology (06810.HK), RoboSense (02948.HK), Ambiq Micro (NYSE: AMBQ), Hanshow Technology (301275.SZ), FinVolution (NYSE: FINV), Qimengdao Group (NASDAQ: HERE), as well as LandSpace, Micro-Nano Starry Sky, Baichuan, Manbang Cold Chain, World Logistics, and Fan Deng Reading, among others.

Rooted in China with a global outlook, Heart Capital is dedicated to early-stage support for entrepreneurial teams with the potential to become world-class Chinese technology companies. Heart Capital champions the value of "heart," believing that technology can serve as a bridge connecting minds. The firm looks forward to accompanying more young Chinese entrepreneurs onto the world stage.