The UK Atomic Energy Authority (UKAEA) has announced a further £20m investment into the UK Innovation & Science Seed Fund (UKI2S), reinforcing its commitment to supporting early-stage technology businesses emerging from UK research institutions.
The new funding will be directed through UKI2S, a government-backed investment fund managed by Future Planet Capital that helps transform scientific breakthroughs into commercially viable companies.
The fund focuses on backing spinouts and start-ups working in high-potential deep technology sectors. As a result of the latest investment round, UKI2S has increased its total funding capacity to £150m.
The expansion strengthens support for companies operating across fusion energy, defence, space and advanced technology sectors, helping drive innovation, economic growth and commercialisation across the UK.
Tim Bestwick, CEO of UKAEA, believes the funding will be instrumental in advancing fusion technology and will have widespread benefits: “It is increasingly recognised that fusion is moving from the research phase to the build and execution phase, and our investment strategy reflects this.
“Innovations from fusion cover a wide range of applications from space to health, with an increased focus on key strategic enabling technologies, such as high-temperature superconducting magnets.”
UKI2S funding expansion reaches £150m
The latest contribution forms part of a wider £33.25m funding increase across three specialist UKI2S sub-funds covering fusion, defence and space technologies.
Alongside UKAEA’s £20m commitment, the UK Space Agency has contributed £9.25m, while the Ministry of Defence has invested £4m.
The combined funding package significantly expands the investment resources available to promising UK technology ventures.
With this latest injection of capital, UKAEA’s total investment in UKI2S now stands at £28m, underlining the organisation’s long-term commitment to supporting innovation beyond the laboratory.
Supporting fusion commercialisation and deep tech growth
UKI2S plays an important role in helping researchers and entrepreneurs bridge the gap between scientific discovery and commercial success.
For UKAEA, the fund serves as both a strategic investment vehicle and a mechanism to accelerate the development of technologies for the future fusion energy sector.
The additional funding will strengthen support for businesses operating within three key sectors identified in the UK Government’s Modern Industrial Strategy: Clean energy industries, defence, and digital and technologies.
By providing early-stage capital, UKI2S enables emerging companies to scale innovative technologies that may otherwise struggle to secure investment during critical growth phases.
Long-term commitment to UK innovation
UKAEA has supported UKI2S since its inception in 2003 and was among the original investors that helped establish the fund.
The latest investment reflects growing confidence in fusion energy as a safe, low-carbon and sustainable source of future power.
Beyond energy generation, the funding is expected to support the development of fusion-derived technologies with applications in industrial control systems, advanced data centres and medical isotope production.
These innovations could deliver substantial economic and societal benefits while strengthening the UK’s position as a global leader in science, technology and clean energy innovation.
The expanded UKI2S fund is expected to play a pivotal role in nurturing the next generation of British deep tech companies and accelerating the commercial impact of UK research.