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could create fusion energy, then
it’s a world-changing company.
Then there’s Cellino [a startup
that uses lasers and nanotech-
nology to program a certain
type of stemcell’s growth]. The
four founders—they’re a mix of
physicists, biologists, and me-
chanical engineers.
Another one that we’re excited
about: Zapata Computing. This
team is working with some of the
biggest industrial players to solve
true problems that only quantum
computing [a complicated com-
puting process that enables faster
calculations] can solve.How has The Engine affected the
tech scene in Boston?
In October we held our first Tough
Tech Summit, which gathered
many people whom we work with
in Boston—whether it’s different
institutions, academic institutions,
venture capitalists, or manufactur-
ers. Yes, some of it is for our com-
panies. But it’s also for this whole
Boston ecosystem.Some startups in The Engine’s port-
folio involve genetic engineering or
artificial intelligence. How do you
handle the ethical concerns?
I’ve been working with former
Defense Secretary Ash Carter
over the last year to gather someincredible people to talk through
these ethical concerns: What are
we unleashing in the world, and
how can that be for good?
We really engage with the peo-
ple who think through this, and we
also engage with our companies to
think through how they’re going
to use their technology. There’s a
bunch we haven’t invested in be-
cause we didn’t believe that they’d
thought through the ethical ramifi-
cations of what they were doing.
These things are often tricky and
in gray areas.As a female CEO in the tech industry,
what’s your view on the status of
women in tech, and how do you
think the #MeToo movement has
affected it?
What’s exciting is that a lot of peo-
ple have woken up to the fact that
there are problems. It’s a conversa-
tion that’s now out in the open.
But I don’t think it’s just
women. I think if you look at
where capital goes, a very small
percentage goes to women, but an
even smaller percentage goes to
African-Americans and Latinos. I
think most people realize we have
a problem hiring equitably in tech.
We have a problem with capital
allocation. I think we have to go fix
that problem, and I think a lot of
people want that to happen.FORTUNE:How is The Engine
different from other venture capital
firms?
KATIE RAE: We have a real focus on
what we call tough tech, and we
also have a mission to grow such
startups in the Boston region. We
do a bunch of things that most
venture funds don’t do.
Right now we have 30,000
square feet of space. Over the next
few years, we will have 10 times
that amount. We help companies
get access to equipment—very
high-end, high-tech equipment.
We have a deep relationship with
MIT, and we think of that as an in-
credible network for these found-
ers to join. The Engine also sets
a longer time frame. We have an
investing horizon of up to 18 years,
which allows us to think about big-
ger, longer-term bets—and these
could be world-changing.
How does T he Engine choose w hich
startups to fund?
The first way we choose is to say,
“Is there an incredible team that
not only understands the technol-
ogy but knows the market they’re
going after and how they want to
approach it?” We really want to
make sure that it’s a group of
people on its own mission. And
do they have the team to do it that
will have staying power?
Then, after that, we say, “Okay,
let’s dive into the market. Are we
creating a market, or are we dis-
rupting a market? And does this
team have a plan to do that?” Ob-
viously, we’re early-stage investors,
so that plan evolves over time.
What are some investments that
you’re most excited about?
It’s hard to choose a favorite. Com-
monwealth Fusion Systems is such
an exciting startup. If it can prove
that it can develop the world’s big-
gest superconducting magnet that
FOCUS
The Engine has invested in over a dozen startups in areas like health and energy.