TAE Technologies and General Fusion have announced plans to merge with publicly traded companies, with both deals valued in the hundreds of millions of dollars. The moves follow a record $1.6 billion in fundraising by fusion startups over the last 12 months. However, many industry insiders are questioning whether these companies are going public too early, given that they haven't yet achieved key milestones such as scientific breakeven.
TAE has received $200 million from its merger with Trump Media & Technology Group, while General Fusion is set to receive $335 million via a reverse merger. Both companies will be valued at over $1 billion after the deals are completed. However, some investors are concerned that these companies may struggle to deliver results and hit breakeven milestones before other privately held startups.
Fusion companies are also divided on whether they should pursue revenue through side businesses or wait until they have a working power plant. Some companies, such as Commonwealth Fusion Systems and Tokamak Energy, plan to sell magnets, while others, like Inertia Enterprises, are focused solely on developing their power plants. There is no consensus on the right time for fusion startups to go public, with some suggesting that scientific breakeven should be achieved before listing on the stock market.
