At a Glance
- Check Size
- $500K – $10M
- Stage
- Seed, Series A
- AUM
- $500M+
- Sectors
- Deeptech, Climate, Biotech +1
- Founded
- 2016
- HQ
- Cambridge, MA
About The Engine
The Engine was launched by MIT to address the funding gap for science and engineering-based startups that require longer development timelines than traditional venture capital typically supports. Founded by Katie Rae and backed by MIT's endowment, The Engine focuses on 'Tough Tech' companies working on breakthrough innovations in areas like advanced manufacturing, biotechnology, robotics, and clean energy. The firm provides not just capital but also access to specialized lab space, equipment, and technical expertise through their Cambridge headquarters facility. Their model recognizes that transformative technologies often require 7-10 years of development and significant capital investment before reaching commercial viability. The Engine's portfolio companies typically emerge from leading research institutions and are working on solutions to problems in climate change, healthcare, and computing infrastructure. The firm's patient capital approach and deep technical support system make them uniquely positioned to support founders commercializing complex scientific breakthroughs.
Investment Thesis
“Patient capital for breakthrough scientific and engineering innovations.”
Leadership Team
Katie Rae has been founding CEO and managing partner since March 2017. She previously ran Techstars Boston as chief executive and was a managing partner at Project 11, after more than fifteen years in senior management and product roles at Microsoft, Eons, AltaVista, RagingBull, Zip2 and Mirror Worlds. She holds an MBA from Yale and a BA in biology from Oberlin.
Reed Sturtevant is a managing partner and was the founding managing director of Techstars Boston as well as a co-founder of Radius, giving the partnership two people who built the same accelerator before building the fund. Ann DeWitt is a general partner. The three-partner investment group sits on top of a larger technical and platform staff that runs the Cambridge lab facility, which is a material part of what the firm offers beyond capital.
Sector Focus
Investment Stage
Notable Portfolio Companies
View full portfolio →Fund History
MIT launched The Engine in 2016 and closed Fund I above $200 million in 2017, beating a $150 million target, with MIT anchoring at $25 million. The first seven investments went out that September across energy, space and materials. Fund II was announced in October 2020 at $230 million, with MIT adding $35 million and Harvard University joining as a limited partner, an unusual pairing of the two endowments in a single venture vehicle.
Fund III closed in June 2024 at $398 million, the firm's largest to date, taking assets under management past $1 billion. The firm now operates as Engine Ventures, and its capital is explicitly patient: Tough Tech companies emerging from university labs typically need seven to ten years and heavy capital before commercial traction, so the funds are structured for longer holds than a conventional seed vehicle. Alongside the funds, the Cambridge headquarters provides portfolio companies with specialized lab and fabrication space, equipment and technical staff.
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Frequently Asked Questions
What stage does The Engine invest at?
The Engine primarily invests at the Seed, Series A stages. This means they focus on companies that are building their initial product and finding product-market fit.
Where is The Engine located?
The Engine is headquartered in Cambridge, MA. Many of their portfolio companies are also based in this region, though they invest across geographies.
What sectors does The Engine focus on?
The Engine focuses on investments in Deeptech, Climate, Biotech, Robotics. Their portfolio reflects deep expertise and networks within these sectors.
What is The Engine's typical check size?
The Engine's typical investment check size ranges from $500K to $10M. Actual amounts may vary based on the stage, sector, and specific opportunity.
How much does The Engine have under management?
The Engine manages approximately $500M+ in assets under management (AUM) across their funds.
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