MIT's The Engine, Now With $200M, Makes First Bets: 3 Takeaways Xconomy

Now the real work begins for The Engine, MIT's ambitious venture fund and incubator. The organization announced its first batch of seven investments on Tuesday (see below), and revealed that it has raised $200 million, with plans to back 40 to 50 so-called "tough-tech" companies over the next few years. The Engine initially raised $150 million for its first fund, but later tacked on the additional $50 million. MIT is one of the investors in the fund; it chipped in $25 million. MIT launched The Engine almost a year ago to provide resources to startups whose technologies might get stranded in the research lab because they would take more time and money to develop than most venture capitalists are willing to invest--think biotech, medical devices, robotics, advanced manufacturing, materials science, and energy. The Engine combines a venture fund and access to work space, expert advisors, educational workshops and events, and business services.