Setting the Scene
Aviation is on track to become the largest carbon emitter.
As the industry shifts towards Sustainable Aviation Fuel (SAF), 2x-5x the price of traditional jet fuel, airlines grapple with balancing fuel costs.
Currently, airlines operate on razor-thin margins, with fuel costs consuming a third of operating budgets.
This week’s company brings zero-emission propulsion to large aircrafts, without the green premium.
In a Sentence
AeroFuse pioneers aviation fusion propulsion systems that cut emissions and extend aircraft range.
Fusion Propulsion Systems: Fusion, a process where atomic nuclei combine to generate heat, powers AeroFuse's fusion propulsion system where their specialized fusion heat exchanger extracts thermal energy to drive a turbine engine.
Range: By integrating this advanced fusion technology, aircrafts can achieve an extended range, enabling longer flights with fewer emissions.
The Basics
Industry: Aerospace, Deep tech, Clean Energy
Headquarters: San Francisco, CA
Year Founded: Oct 2023
Employee Count: 2
Investors: Soma Capital, Israel Aerospace Industries (IAI), Climate Capital, and others.
Amount Raised: $370k pre-seed
Business Model: Production and sale of Fusion Propulsion retrofit systems, installed on aircraft via a global network of MRO partners, with annual licensing, maintenance and fusion fuel contracts.
Early Traction: Signed an LOI with Natilus to integrate AeroFuse's Fusion Propulsion System into autonomous cargo drones; obtained letters of support from Airbus, Boeing, Embraer, DIU and FedEx; and secured 4 MOUs with leading compact fusion suppliers: Avalanche Energy, Helicity Space, Princeton Fusion and Jupiter Volta
IN PARTNERSHIP WITH
The ARK Venture Fund is taking an asset class once reserved for the accredited, ultra-rich and making it available to all US investors.
ARK offers investment exposure to companies like SpaceX, Epic Games, Figure AI, Anthropic, and more! See the portfolio here.
You can invest in the ARK Venture Fund (ARKVX) for as little as a $500 minimum initial investment.
All U.S. self-directed investors can download the SoFi or Titan app and invest in the ARK Venture Fund (ARKVX) now.
The above button will also contain a prospectus and fund risks. Foreside Fund Services, LLC, distributor.*
Due Diligence
WHAT WE LIKE
Massive Market Opportunity: AeroFuse targets the aviation industry's $5 trillion problem by offering a groundbreaking fusion propulsion system that can significantly reduce fuel costs and emissions.
Shift to Zero Emissions: With regulatory pressure and market demand increasingly favoring zero emissions, AeroFuse's fusion technology is uniquely positioned in an industry that is struggling to decarbonize.
Fusion: Unlike alternatives that rely on SAF or hydrogen—both facing limitations in scalability and cost—fusion offers a limitless, energy-dense power source that reduces emissions while providing efficiency for long-haul aviation.
POTENTIAL RISKS
Technical Complexity: Fusion energy remains one of the most challenging scientific frontiers, with hurdles to achieve conditions for sustained reactions.
High Capital Requirements: The development and scaling of fusion propulsion systems require substantial and continuous capital investment, posing a risk if funding is insufficient or delayed.
Regulatory and Adoption Barriers: Introducing a novel technology like fusion into the aviation industry will likely face stringent regulatory scrutiny and slow market adoption.
Founder Profile
Rama Myers, COO: Previously at Climate Capital, ZeroAvia, and Seeing Machines.
Comps
LanzaJet: Backed by Suncor Energy, Shell Oil Company, Southwest Airlines, Airbus, and others.
Air Company: Backed by Toyota Ventures, QP Ventures, JetBlue Ventures, Parley.
Twelve: Backed by Techstars, DCVC, Capricorn Investment Group, BloombergNEF, and others
ZeroAvia: Backed by Elemental Excelerator, Breakthrough Energy Ventures, Ecosystem Integrity Fund, British Airways, United Airlines, and others.
Event Board
Cast Your Vote
What do you think of AeroFuse?
Last Week Today
The Results Are In: CamPlan, an AI and AR-powered platform for interior design and renovations, was favored in last week’s poll.
Subscriber Feedback: “With the huge market opportunity in remodeling, CamPlan seems well positioned to scale.”