MIT's fund accelerator 'The Engine' raises $150mn

Launched in October 2016, fund accelerator for advanced technology startups, The Engine,  has raised more than $150 million in its first investment round to "support startups developing breakthrough scientific and technological innovations with potential for societal impact."

While MIT invested $25 million to the Engine Accelerator Fund I, the rest of the money was raised from a small group of investors “aligned with the fund’s mission,” according to a statement.

Notably, The Engine combines an accelerator, an open network of technical facilities, and a fund, which together will provide stable financial support and access to costly resources for startups. Focus will be given to startups developing “tough” technologies — breakthrough ideas that require time to commercialize — in a range of sectors including robotics, manufacturing, health tech, biotechnology, and energy.

The Engine will open its offices in May in Cambridge near the MIT campus. The facilities will include space for startups to share equipment, such as large microscopes, as well as labs and other resources at MIT.

President, CEO and Managing Partner Katie Rae said, “We’re looking for startups with breakout technologies and great founding teams that want to build their companies in the New England region.”

“Now that we have the funding in place and our space is opening, we can begin to select our first startups. I can’t wait to get started working with the entrepreneurs. Helping entrepreneurs achieve their visions is what I’m most passionate about, and we’re going to create a community where founders help each other succeed,” she further added.

Rae is a seasoned, early-stage investor and technologist, having previously led funds like TechStars Boston and Project 11.

Several board members and advisers of The Engine are faculty and staff at MIT.

Rae said the enterprise is planning to raise more capital and may launch additional funds.