Tackling ‘Tough Tech'

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

- Renae Reints

TECH VENTURE CAPITALIST KATIE RAE is 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 require 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, Massachusetts. The school, a hotbed for tough tech, wanted to help founders make their potentially world-changing ideas a reality.

Since its inception, The Engine has invested in over a dozen startups focussed on energy, agriculture, 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 accelerator programme. Fortune spoke with Rae about The Engine and the ethical challenges some tech companies face. The following has been edited for length and clarity.

FORTUNE:

How is The Engine different from other venture capital firms?