Tough Tech Is Everywhere
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Tough Tech is ... > Launching a satellite network to connect existing satellites to Earth 24/7. > A new process to produce steel more efficiently, at a lower cost, and with zero greenhouse gas emissions. > Developing gas sensing technologies that transform the gases around us into useful, quantifiable knowledge. > A natural, sustainable, and edible protective food coating that significantly increases shelf life and reduces food waste. > Transforming power electronics with a new generation of GaN-powered chips. > Pioneering the next pillar of the regenerative medicine industry through precision cell production. > Creating safe, unlimited, carbon-free fusion power for the grid in 10-15 years. > Enabling rapid, accurate diagnosis of infectious disease at the point of care. > Engineering a bidirectional power plant to make renewable energy available 24/7. > Producing ultra-efficient chip-scale optical circuits to de-bottleneck data centers, telecommunication networks, and secure quantum communications. CONTENTS a. b. | 04 | | 06 | Industry Tough Tech Summit 2019 c. d. e. A home for Tough Tech founders. | 26 | | 42 | | 54 | The Engine, built by MIT, is a venture firm that invests in early-stage The Dream Nature Cleaning companies solving the world’s biggest problems through the convergence of of Anything Amplified Up Steel Anywhere breakthrough science, engineering, and leadership. Our mission is to accelerate the path to market for Tough Tech companies through access to a unique combination of investment, infrastructure, and a vibrant ecosystem. Tough Tech Publication 04 f. November 2019 Editor: Nathaniel Brewster The Engine, Built by MIT Design: www.draft.cl | 68 | Print by Puritan Capital, NH & MA The Engine Portfolio Companies TOUGH TECH 04 TOUGH TECH 04 | | 6 7 | Industry | The way we make things is changing. Essential things like steel, cement, and chemicals. Everyday things like shoes and tools. Complex things like rockets and biological organisms. This change is thanks to a unique convergence of materials, technologies, and processes maturing in unison. These new technologies and processes are the things that help us make other things. not simply different from the status quo, They are the foundation upon which the they are, in almost all cases, more efficient, necessities of life are built and hold enormous less expensive, and far less polluting than commercial, environmental, and societal value. their traditional counterparts. This new industrial Tough Tech is developed, in many This edition of Tough Tech highlights cases, with the express purpose of tackling three facets of the Tough Tech industrial the planet’s biggest challenges like climate revolution: the race to eliminate greenhouse change and human health. gas emissions from steel, cement, and chemical production; the blossoming and Much of this new industrial revolution is dynamic additive manufacturing industry; hidden from the public eye — these are and how biology is harnessed to produce technologies and processes that make industrial products at scale. Tough Tech SummitSM Forging a Path for Tough Tech. TOUGH TECH 04 | TOUGH TECH 04 | Our second invite-only conference of “Solving the global-scale problems Tough Tech companies 8 founders, investors, academics, policy are tackling requires commitment and collaboration. 9 | | makers, and business leaders explored The only way we solve fundamental challenges in climate, the challenges of bringing Tough Tech to human health, infrastructure, and computing is together.” market, and investigated the business, technical, and financial strategies needed The Tough Tech Summit has one goal — unite a community to support founders as they build companies tackling some of the world’s hardest to accelerate the commercial success of problems. I saw 500 individual members of such a community — world-changing companies. entrepreneurs, academics, policy makers, business leaders, investors, and the founders themselves — work together over two days to push these companies, and their ideas, forward. All were there because they believe in the convergent power of people, technology, and science to change the world. It was as humbling as it | was inspiring. Build 10.21. Invest 10.22. As you browse this publication, I hope it inspires you to ask yourself how you can help founders’ ambition scale to the level where their companies thrive Day one, Build, featured a fireside chat other Tough Tech founders and investors. commercially. I challenge you to ask yourself how you can make the path with Vinod Khosla, founder keynotes, case Josh DeFonzo, Peter Hebert, and Bijan faster and easier for these entrepreneurs — if we all do that, imagine what we study workshops, and interactive panels. Salehizadeh, some of the lead investors, Attendees worked together to help solve advisors, and executives behind Auris can create! If we get it right — when we get it right — we can create a Tough some of the core challenges faced by Tough Health, had a frank and illuminating Tech ecosystem that needs no introduction. Tech companies. discussion about the company’s journey from startup to multi-billion-dollar During day two, Invest, founders pitched acquisition. The day also featured panel Katie Rae their businesses and connected with sessions and open networking time. CEO & Managing Partner Tough Tech Summit DAY 1: DAY 2: DAY 1 & 2: 192 101 207 500 UNIQUE ATTENDEES UNIQUE ATTENDEES UNIQUE ATTENDEES UNIQUE ATTENDEES Build 10.21. DAY 1 Invest 10.22. DAY 2 33% 27% 28% 40% ENTREPRENEURS INVESTORS ENTREPRENEURS INVESTORS TOUGH TECH 04 TOUGH TECH 04 MEMBERS OF THE TOUGH TOUGH TECH FOUNDERS TECH ECOSYSTEM AND ENTREPRENEURS MEMBERS OF THE TOUGH | | TOUGH TECH FOUNDERS 10 TECH ECOSYSTEM 39 11 MEMBERS OF AND ENTREPRENEURS | | GOVERNMENT 18 123 17 81 ATTENDEES MEMBERS OF GOVERNMENT 16 399 ATTENDEES STRATEGIC INVESTORS STRATEGIC CORPORATES INVESTORS 306 CORPORATES LEADERS 45 IN ACADEMIA 107 32 122 36 Platinum Partners Gold Partners Tough Tech SummitSM “To us at The Engine, the future will be filled with more empowered founders building technology, teams, and companies. And those companies will know where to look for support.” TOUGH TECH 04 “We have one goal today: to further develop a TOUGH TECH 04 community that supports these founders as they build companies tackling some of the world’s hardest problems.” | | 12 Katie Rae 13 | | CEO & Managing Partner, The Engine “The team you build is the company you build.” “Skeptics have never done the impossible. Keep that in mind. It’s religion for me. I’d rather try and fail than fail to try it.” “If you ask three experts and all three say, yeah, this is not doable, then you have to worry. If they all say it’s doable, then you have to worry that too many people will do it. So you have to exist in this other space where people doubt it can be done.” Vinod Khosla Founder & Partner, Khosla Ventures Build 10.21. Tough Tech Summit Case Studies SOLIDIA TECHNOLOGIES FORMLABS D-WAVE & LOCKHEED MARTIN Ann DeWitt | Moderator Milo Werner | Moderator Reed Sturtevant | Moderator General Partner, The Engine Partner, Ajax Strategies General Partner, The Engine Jim Matheson | Moderator Max Lobovsky Vern Brownell Senior Lecturer in Business Administration, Co-Founder & CEO, Formlabs CEO, D-Wave Harvard Business School Dávid Lakatos Ned Allen Nick DeCristofaro Chief Product Officer, Formlabs Chief Scientist, Lockheed Martin CTO, Solidia Technologies TOUGH TECH 04 TOUGH TECH 04 In 2011, Formlabs was in its early days, working When D-Wave built the first working quantum computer, As Solidia Technologies, a sustainable cement and on a prototype for a low-cost, prosumer-oriented it had no customers. How did it sell this computer, a concrete technology company, began its path toward stereolithography 3D printer. With the long-term vision technology that no one had ever bought before? And why commercialization, it was faced with a core business model of internalizing key parts of their supply chain, they were did Lockheed Martin, D-Wave’s first customer, take the decision — become a cement and concrete company and looking for an immediate partnership that would help them leap and make the purchase when there was no precedent | | seek to disrupt the industry’s major players, or become hit the ground running. for doing so? 14 15 a technology provider and disrupt the industry’s carbon | | footprint without being disruptive to established business In just a few years, Formlabs has grown to be the largest For Lockheed Martin, who produces complex cyber- and manufacturing processes. part of their partner’s business, with the expectation of physical systems, the possibility of reducing the cost and overwhelming their production in the near future. With time of software verification and validation (V&V) was too Solidia decided to think big — to sell its technology to the desire to have more control over its supply chain at great to ignore. Lockheed spends tens of millions every year major manufacturers of cement and concrete, taking current and future scale, Formlabs is faced with a number on V&V — in fact, 60 percent of production cost is related advantage of the established global supply chain to scale of options: acquire their current partner, find a new, bigger to V&V of the system. It is, in the words of Ned Allen, the quickly and efficiently. With this business model, the partner, or build their own facility. company’s chief scientist, “a humongous problem.” company’s technology has the potential to eliminate at least 1.5 gigatons of CO2 per year. What we learned: Allen at Lockheed had to ensure that the money his “Maintaining control of supply is super important for us. In the company invested in D-Wave’s quantum computer would Nick DeCristofaro, CTO of Solidia, shared four reasons 3D printing world, your material is your special sauce. People not be lost, even if the initial goal of the program was why his company decided to pursue its current technology- are buying your printers for their performance.