The Engine Ventures, a venture firm that invests in early-stage founders solving critical global challenges, announced it raised a $398 million Fund III, bringing the firm’s total assets under management to over $1 billion. Launched in 2016 as The Engine built by MIT, the firm’s goal is to unlock commercialization in Tough Tech, a new asset class that translates breakthrough science and engineering from lab to market.
The investment fund, which is now branded as The Engine Ventures, has backed 56 transformational companies. And with Fund III, The Engine Ventures is scaling its investment model to help bridge the gap from discovery to commercialization for climate, human health, and advanced systems technology.
Engine Ventures has a specific focus on identifying early-stage founders and working hand-in-hand to help them solve massive societal problems, starting at first check and with board appointments. And by providing extensive operational expertise and unprecedented access to a powerful academic, commercial, and governmental network, the firm helps early-stage companies mitigate risk and hit meaningful commercial milestones that unlock access to the capital required to make a major impact.
Here is an example of significant portfolio company momentum:
With a corporate urgency to combat climate change, Commonwealth Fusion Systems completed the first year of its collaboration with global energy giant ENIi to advance the commercialization of fusion energy. And at its new facility in Holyoke, Massachusetts, Sublime Systems is producing emissions-free cement blends on an R&D-scale pilot line, with initial tests demonstrating that the company’s cement meets industry performance standards at a lower carbon dioxide intensity compared to incumbents. This summer, VEIR completed and energized a 100-foot overhead superconductor power line with a novel cooling approach that could help meet the global need for new power transmission.
The Inflation Reduction Act at the U.S. Department of Energy (DOE) selected Boston Metal to negotiate federal funding to establish a new manufacturing plant in Weirton, WV. And the metals processing platform decarbonizing steelmaking and how materials are made received TIME’s top 100 innovations of 2024. Plus, Form Energy constructed its first American battery manufacturing plant in Weirton, WV, creating hundreds of jobs. These initiatives contribute towards transforming the nation’s advanced manufacturing sector and revitalizing former U.S. coal communities.
Utilizing technological advances that accelerate R&D, Cellino Biotech is enabling scaled regenerative medicines and is engaged in national-level discussions on automated manufacturing, quality, and regulatory standards for these therapies. And Droplet Biosciences released data indicating that lymph liquid biopsy provides superior, faster detection of residual, local cancer post-surgery compared to current blood testing. Atlantic Quantum Computing is showing scalable control of single-qubit and two-qubit systems, having recently established its new quantum computing lab outside of MIT. Plus, Vaxess Technologies announced a collaboration with AstraZeneca to advance its novel patch delivery technology for RNA-based vaccines.
KEY QUOTE:
“We need Tough Tech founders’ vision and ability to devise creative solutions to the world’s biggest problems now more than ever. Building a company that will result in real, societal impact and creating the industries of tomorrow is no easy feat, but already The Engine Ventures’ portfolio companies have achieved remarkable progress and contributed meaningfully to combating climate, improving human health, and developing advanced systems and infrastructure. These companies have the potential to yield massive returns. With Fund III, we have an incredible opportunity to scale our pioneering investment model and back more game-changing companies with our capital, operational knowledge and academic expertise.”
– Katie Rae, CEO and Managing Partner of The Engine Ventures
