The venture firm’s second fund has secured a $20m commitment from the International Finance Corporation, bringing the vehicle to $250m.

The Engine, the venture firm and tough tech incubator formed by Massachusetts Institute of Technology (MIT), added $20m in capital to its Fund II today thanks to the International Finance Corporation, the private sector arm of the World Bank. The fund secured an initial $230m from limited partners including MIT and Harvard University in October 2020. Katie Rae, chief executive and managing partner of The Engine, said: “Tough tech is critical to addressing significant global challenges, but the ecosystem required to support it is extremely complex; it involves cutting-edge universities and research, innovative entrepreneurs, and visionary investors who are willing to believe in and back fundamentally new ideas that call for radical change but represent tremendously positive potential outcomes. “This is where leading impact investing institutions like IFC play a key role by bringing long-term capital and the convening power needed to conceive and commercialize new technologies from lab to market.” The Engine was launched in 2016, following an op-ed by MIT president L Rafael Reif for the Washington Post the previous year.

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Thierry Heles

Thierry Heles is the editor of Global University Venturing, host of the Beyond the Breakthrough interview podcast and responsible for the monthly GUV Gazette (sign up here for free).