Nuclear Startups Raise $1.1B for Smaller Reactors

After decades of decline, nuclear energy is having its moment again. In just the final weeks of 2025, nuclear startups raised $1.1 billion to prove that smaller can be better when it comes to clean energy.

The excitement centers on a simple idea: shrink the reactor, dodge the problems. Traditional nuclear plants like Georgia's Vogtle 3 and 4 are engineering marvels, but they arrived eight years late and more than $20 billion over budget. The new generation of startups believes that building compact reactors using factory production lines will make nuclear power faster and cheaper to deploy.

The strategy mirrors how cars or phones get made. Produce the same parts repeatedly, get better at making them, and watch costs fall. Need more electricity? Just add another small reactor instead of building one massive plant.

But manufacturing expertise presents a major hurdle. Milo Werner, a venture capitalist at DCVC who previously led new product launches at Tesla and Fitbit, points out that the U.S. has lost much of its industrial muscle. "We haven't really built any industrial facilities in 40 years in the United States," she explains.

The problem goes deeper than missing materials. America lacks experienced factory builders, machine operators, and manufacturing leaders at every level. Werner compares it to sitting on the couch for a decade and then trying to run a marathon the next day.

The Bright Side

Despite these challenges, Werner sees reasons for optimism. Many startups are building early product versions close to their engineering teams in the U.S., which creates a cycle of rapid improvement. This approach pulls manufacturing back home and helps companies learn faster.

The key is starting small and scaling gradually. By producing limited volumes early on, nuclear startups can collect data showing they're actually getting better at manufacturing over time. That proof reassures investors and validates the business model.

Werner acknowledges the benefits won't appear overnight. Cost reductions from mass manufacturing often take a decade to materialize. But with capital flowing freely into the sector, these startups have the runway they need to rebuild America's manufacturing expertise one reactor at a time.

The nuclear renaissance represents more than just clean energy progress; it's a chance to restore the industrial capabilities America once led the world in building.