Where Focus Goes, Money Flows

Nuclear energy has entered an exciting new phase. We are seeing widespread support from a diverse group of stakeholders including utilities, technology companies, governments, and environmentalists. Unsurprisingly, that has caught the eye of venture capital and private equity firms looking to capitalize on this opportunity. Significant funds have been committed over the last two years, accelerating in the last nine months.

Across this landscape, there are new nuclear technologies that tout their benefits on every finance show on 24/7 cable networks. The new narrative, interest, and perhaps money has attracted many outsiders who can tell us everything the industry has been doing wrong and how they’re going to build a better, cheaper mousetrap to save us from ourselves. It seems like you can’t throw a rock without hitting another tech bro’s nuclear startup. Some are innovative new designs, while others are just a repackaging of 1960’s technology mashed up with 2025 marketing spin.

Those of us who have been deeply involved in the technical, licensing, and regulatory side of the industry, can identify significant flaws and potential hurdles that will need to be overcome for these designs to become a reality. This is complex technology that takes many years of execution within the industry to fully understand and appreciate. When nuclear safety is involved, the Silicon Valley approach of churning out a beta minimum viable product doesn’t work. The “move fast and break things” mantra doesn’t apply when nuclear safety is involved.

The culture of the nuclear industry is also difficult for anyone outside the industry to truly understand and appreciate. The hyper focus on safety, defense-in-depth, and similar considerations is not something that is observed elsewhere, or certainly not to the extent seen in nuclear.

Among the more than 80 new reactor designs, there will be winners and losers. Most will never get off the ground. Some will come to fruition, but not in a financially sustainable way and will end with just one plant being built. While others will provide the clean, reliable power needed to fuel our energy needs far into the future.

As a general partner in a venture capital or private equity fund, you know the value of having the right team in place. Competency and ability to work together will drive the success of your current funds and your ability to raise capital for your next one. Unless your fund size is on the order of Sequoia Capital, bringing a team in-house with the deep knowledge and ability to dig in across the broad range of issues, any one of which can doom a project, is out of the question. Even if you do have the resources to assemble the team, having the knowledge of what skills and experience are needed to bring in across the full range of technical challenges, regulatory issues, supply chain constraints and legal aspects is a challenge in and of itself.

Nuclear Due Diligence Associates was founded to fill this technology gap in your team. Our team, led by industry veterans who have a history of successfully executing projects, can provide the guidance and advice as you consider investing in these startups. With a wide variety of expertise, extensive experience, and specialist knowledge of the industry, we can work with you to formulate and execute an appropriately sized and focused diligence process to maximize the chance of success for your investment.

Don’t be the stupid money! Reach out to us today to discuss your needs.