Fortune USA 201901-02

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FORTUNE.COM// JA N.1 .19

Since its inception, The Engine

has invested in over a dozen start-

ups focused on energy, agricul-

ture, and health. The fund takes

a holistic approach, providing its

startups with space, equipment,

and business connections along

with long-term capital.

Rae is a veteran of the Boston

tech scene: She cofounded venture

capital firm Project 11 and Boston’s

chapter of the Startup Institute,

and served as managing director

at Techstars Boston, a startup ac-

celerator program.Fortune spoke

with Rae about The Engine and the

ethical challenges some tech com-

panies face. The following has been

edited for length and clarity.

VENTURE CAPITALIST K ATIE RAEis trying to prove that “tough tech” is

worth the tough work. The Engine, the $200 million fund she

leads, invests in startups whose products require years of research and

development before they’re ready.

In short, they’re startups that many other venture capitalists avoid—like

one firm that’s pursuing a viable form of fusion energy—because they re-

quire more time to get off the ground than the typical photo app and more

time to pay off, if ever.

Rae’s three-year-old fund is an independent offshoot of MIT, in Cambridge,

Mass. The school, a hotbed for tough tech, wanted to help founders make

their potentially world-changing ideas a reality.

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TACKLING ‘ TOUGH TECH’

Q+A

Unlike many venture capitalists, Katie Rae is a fan of startups that
take on big and complicated problems.Interview by Renae Reints

Rae’s fund, The

Engine, provides

its startups with

office space,

equipment, and

connections.

PHOTOGRAPHS BYTONY LUONG