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Thea Energy lands $20M federal grant to build its magnets for fusion reactors

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For hard-tech startups, manufacturing is a pricey endeavor. Now, Thea Energy has a leg up courtesy of a Department of Energy grant.

The fusion power startup told TechCrunch Monday that it has received a $20 million award from ARPA-E to help manufacture its modular high-temperature superconducting (HTS) magnets.

HTS magnets are costly but important components in any magnetic confinement reactor, one of the two main ways startups are attempting to harness fusion power for commercial purposes. In magnetic confinement reactors, powerful magnetic fields contain and compress plasma, helping to heat the particles until the fuel can fuse and release large amounts of energy.

Thea’s reactor is based on a design known as a stellarator. Stellarators look like inner tubes that have been twisted and squeezed in ways that help it confine the plasma more effectively. Most stellarators use magnets that are built to mimic those twists and turns, which makes them expensive to manufacture. 

An animation of plasma flowing through Thea Energy's Helios reactor core.
A cutaway view of plasma flowing through Helios’s reactor core.Image Credits:Thea Energy

To minimize manufacturing costs, Thea uses fewer variants. The 12 large magnets that do the heavy lifting are made from four different templates, and the more than 300 smaller magnets used to fine tune the plasma are all identical. They’re arrayed around the periphery of the reactor, similar to how pixels are distributed across a computer display. 

The small magnets are controlled by software, an arrangement should allow for more forgiving construction tolerances, which could lower costs, Thea says.

Thea is among the top funded fusion power startups, having raised $100 million in May on top of a $20 million Series A it raised in 2024. Like many of its peers, Thea has plans to build a commercial scale fusion power plant in the mid-2040s.

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Startups don’t need to go viral to win customers

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Getting initial customers as a startup can be one of the most grueling challenges in business. Even when companies manage to snag some early interest, there’s no guarantee those customers will stick around.

At TechCrunch Disrupt last week, Elia Wallen, founder and CEO of travel startup Engine, Gamma founder and CEO Grant Lee, and Crystal Huang, general partner at Google Ventures, shared tips on how to attract and retain customers.

In the current era — when young AI companies like Cluely and Instinct are building big audiences not just through their products but also through their founders’ colorful online presences — social media can seem like a magic bullet for reaching early customers. But founders who want heighten their business strategy with modern marketing, have to be strategic, according to Lee.

Gamma, which sells AI-powered presentation software, managed to scale its business exponentially with a social media strategy that deployed influencers through its Ambassadors (or “Gambassador”) program. The company adopted the plan before influencer-based marketing was a tried-and-true strategy for smaller companies, eventually reaching a multi-billion dollar valuation.

But simply giving influencers a platform and telling them to promote your brand online doesn’t automatically translate to sales, said Lee. There’s more to it than that.

“If you have a product that can serve many different segments or use cases, then you want to basically have creators that can target each one of those,” Lee said. “If you have folks that are in consulting versus people that do all their marketing and create all the decks for their CMO, there’s all these different segments you might want to go after.”

Lee said sometimes founders seem to treat creator marketing or influencer marketing as a sort of set it and forget it thing.

“I think you’re better served by really spending a lot of time with these creators, because if they’re not able to understand how to articulate the value of your product, it doesn’t matter how much money you spend, it’s just going to fall flat,” Lee added.

The effectiveness of social media depends largely on the type of business. Other ways of reaching customers can be just (if not more) effective.

Wallen would know. His company Engine, which manages lodging and travel bookings for midsize businesses, bootstrapped its way to $150 million in bookings before taking on any outside funding. They also had no visible social media strategy at all. For Wallen, traditional sales tactics can be far more useful than a positive TikTok video.

“We did events and we smiled and dialed,” said Wallen. “We still have a lot of people picking up the phone. A lot of people who didn’t grow up with that or don’t understand it think that it’s outdated or it doesn’t work but it does. It’s a hard thing. There are a lot of companies that just refuse to do it or don’t know how to do it well. But they’re missing out on a very big offline client base.” He added: “The phone still works.”

Wallen also shared an in-person tactic that his company deployed during its scrappy early days: hiring a magician named David to perform tricks for prospective clients at events and encourage them to visit the Engine’s booth. In short, old-fashioned personal engagement can work just as well, if not better, than the latest social media tricks.

Huang, who has managed droves of startups and shepherded them to success, said that once you have a customer, a lot of value can be derived from looking at how they use the product.

“Can you look into usage data and figure out if it’s recurring, if it’s increasing, if they are referring their friends?” Huang said. “It can come across in early usage and retention information as well. And then also, do you see some super fans, right, who even want to work at the company, promote the company, be attached to the brand?” She added: “You need to have ways to create evangelists who are really passionate about the product.”

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'Atiku’s push for return of power to North is insult' — Laolu Akande

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Former presidential aide Laolu Akande has criticised the African Democratic Congress, ADC, presidential candidate Atiku Abubakar's reported position on power returning to the North, describing the argument as an insult to Nigerians from the region.

Akande, a former Senior Special Assistant to the President on Media and Publicity in the Office of the Vice President, made the remarks while speaking on Symfoni TV on Friday.

Speaking on the readiness and viability of presidential candidates ahead of the coming election, Akande argued that the country must maintain the principle of rotational presidency to promote a sense of belonging among its various regions.

“Atiku is just basically saying that, okay, the North is angry; we want power back. And that idea, with due respect to our brothers in the North, is an insult. It’s an insult. This country, we must maintain rotational presidency for purposes of building a sense of belonging,” he said.

Speaking on the ADC's choice of presidential candidate, he said, “If they were serious, they should have picked Amaechi, or they should have prevented Obi from leaving, and then Atiku would have been a star.”

‘Atiku’s push for return of power to North is insult’ — Laolu Akande

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