Realta Fusion, a fusion energy technology spin-out from the University of Wisconsin, has raised $12 million in financing, the company announced recently.

The funding consisted of a $9 million seed round led by Khosla Ventures and a $3 million award from the U.S. Department of Energy. The Wisconsin Alumni Research Foundation (WARF) also participated.

According to a release, the funds will be used to develop compact magnetic mirror fusion technology.

“We are applying next-generation superconducting magnets and major advances in plasma stability to the relatively mature concept of the magnetic mirror,” Realta CEO Kieran Furlong said in a statement. “This funding will enable us to build out our team and complete the physics design for our break-even class device, BEAM, which will be our last experimental step before designing industrial fusion energy systems.”

Realta’s compact magnetic mirror will produce net energy at smaller scales than competing toroidal systems. It also has the potential to be a lower cost- and less complex-generator of zero-carbon heat and power.