Breakthrough Victoria will invest $75 million into five venture capital funds in a bid to support early-stage companies and accelerate the commercialisation of research across key sectors, including climate technology, life sciences and artificial intelligence.
The funding will be split between Virescent Ventures Fund II (climate technology), SYNthesis BioVentures Fund I (oncology and therapeutics), Scale Venture Fund I (female and diverse founders), Galileo Ventures Fund II (early-stage technology startups), and a new North American healthcare fund establishing an Australian base in Victoria.
Each fund has committed to allocate at least 25 per cent of total capital to Victorian companies, ensuring local innovators benefit directly from the investment.
Announced by Minister for Economic Growth and Jobs Danny Pearson, the investment is designed to “significantly increase the venture capital available to support innovation-intensive Victorian companies”, helping to transform the state’s economy and create highly skilled jobs.
“Commercialising Victorian research and investing in innovation are crucial for our long-term economic growth and resilience and for unlocking technologies with potential to improve our way of life,” Mr Pearson said on Saturday.
The $75 million program forms part of the state government’s broader Economic Growth Statement, which called for Breakthrough Victoria to crowd in more private capital while sharpening alignment with priority sectors.
“Breakthrough Victoria is committed to boosting investment in Venture Capital funds, aligning with Victoria’s Economic Growth Statement,” Breakthrough Victoria chief executive Rod Bristow said.
“Since 2021, we’ve leveraged over $1.3 billion in private co-investment. This initiative will further solidify our role in ensuring innovative companies have the capital to grow and drive economic growth for our state.”
The state government is reviewing Breakthrough Victoria’s role in the state’s innovation and commercialisation ecosystem. The review is reportedly complete and being considered by government.
Virescent Ventures Fund II managing partner Ben Gust said Breakthrough’s support would help “build a portfolio of early-stage climate-focused companies that drive innovation, create new jobs and power sustainable growth”.
SYNthesis BioVentures Fund I, founded by Professor Andrew Wilks, will back therapeutics across oncology, immunology and inflammatory diseases, with over 80 per cent of its investments expected in Victoria.
Scale Venture Fund I, led by Samar Mcheileh, will focus on underrepresented female founders, addressing the gap that sees only 3 per cent of venture capital flow to all-women founding teams.
Galileo Ventures Fund II, a pre-seed and seed fund supporting early-stage technology startups, will continue investing in Victorian founders, with co-founder Hugh Stephens noting that pre-seed capital remains a mirage for founders.
The fifth investment is in an unnamed specialist North American healthcare fund, which will establish its first Australian operations in Victoria and ensure at least 25 per cent of its portfolio companies are based in the state.
Established 20 years ago, the fund manager has launched five new healthcare funds, deploying approximately US$500 million across 100 portfolio companies. The firm has delivered more than 30 portfolio company exits.
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