The Allan Labor Government has announced a substantial investment in venture capital funds aimed at bolstering innovative companies in Victoria. Minister for Economic Growth and Jobs, Danny Pearson, revealed today a $75 million commitment to five specialized venture capital funds focusing on climate-tech, health and life sciences, high-growth technology businesses, and female founders.
This strategic move is designed to provide the necessary support for Victorian companies to expand and thrive. The funds will be managed by Breakthrough Victoria, which will invest in notable entities such as Virescent Ventures Fund II, Australia’s largest dedicated climate technology investor, and SYNthesis BioVentures Fund I, a biomedical innovation fund founded by oncology expert Professor Andrew Wilks in Victoria.
Targeting Key Sectors and Gaps
The investment strategy includes Scale Venture Fund I, which addresses the critical shortage of venture capital for female founders, with only three percent of funding currently going to startups led by all-women teams. Another recipient, Galileo Ventures Fund II, focuses on emerging founders at the pre-seed and seed stages within high-growth technology sectors.
Additionally, Breakthrough Victoria will make a cornerstone investment with a North American health and life sciences fund manager as they launch their first Australian fund, further diversifying the investment portfolio.
Building on Existing Success
This initiative builds on the Labor Government’s existing portfolio, which includes Tin Alley Ventures and seven University Innovation Platform partnerships. These efforts support the commercialization of intellectual property and research, reinforcing Victoria’s position as a hub for innovation.
Since its inception, the Labor Government’s direct investments have attracted $1.3 billion in co-investment, and this latest initiative is expected to further shape the future of Victoria’s economy. An independent report by EY-Parthenon projects that Breakthrough Victoria’s portfolio will generate $5.3 billion in economic impact for the state by 2035.
“We’re backing Victorian innovation to grow our economy and create more secure, high-skill jobs. When local ideas succeed, our whole state benefits,” stated Minister for Economic Growth and Jobs Danny Pearson.
Economic Growth and Future Prospects
This investment is a key component of the Labor Government’s Economic Growth Statement, released in December last year. The statement outlines various initiatives aimed at fostering economic growth and innovation across Victoria. For more information, interested parties can visit the official website at www.vic.gov.au/economic-growth-statement.
Rod Bristow, CEO of Breakthrough Victoria, emphasized the importance of this initiative, stating,
“Breakthrough Victoria is committed to boosting investment in venture capital funds, aligning with Victoria’s Economic Growth Statement. This initiative will ensure innovative companies have the capital to grow and drive economic growth for our state.”
As the Victorian Government continues to support innovation and economic development, these investments are expected to attract private capital, boost business confidence, and build the industries and jobs of the future. The move represents a significant step towards securing a prosperous economic future for Victoria.
