Victoria Invests $75M to Fuel Local Innovation Ecosystem

The Victorian government is injecting $75 million into five specialized venture capital funds through its investment arm, Breakthrough Victoria. This strategic move aims to attract significant private co-investment and accelerate the growth of the state’s innovation ecosystem. The initiative brings dedicated investment management expertise to Victoria and leverages private capital to help scale local companies across several high-potential sectors.

Among the recipients are Australia’s largest climate-tech capital firm, a fund led by a prominent oncology researcher, a fund supporting underrepresented female and diverse founders, a fund investing in emerging high-growth technology businesses including AI, and the first leading North American healthcare fund to establish Australian operations. Critically, all five funds have committed to allocating 25 percent of their total capital specifically to Victorian companies.

This latest action follows the State Government’s Victoria’s Economic Growth Statement, which called for Breakthrough Victoria to increase its investment in Venture Capital funds. The goal is to attract more private capital into the state and turbocharge investment. This new initiative expands Breakthrough Victoria’s existing portfolio, which includes Tin Alley Ventures and seven University Innovation Platform partnerships. Private co-investment alongside Breakthrough’s cornerstone commitments is expected to add to the more than $1.3 billion in private co-investment capital the organization has already leveraged.

Breakthrough Victoria reports it has made 69 investment commitments totaling over $480 million, positioning it as one of Australia’s most active early-stage technology investors. An independent report by EY-Parthenon found that BV’s portfolio is projected to generate $5.3 billion in economic impact for Victoria by 2035. The same report revealed that 88 percent of early-stage investment in Victoria during 2024 came from BV-backed investors, and 76 percent of all venture-stage investment in the state involved BV.

Investing in these Venture Capital funds strengthens Breakthrough Victoria’s central role in transforming the Victorian economy by driving the successful commercialisation of intellectual property and research. This solidifies BV as a cornerstone of the local innovation ecosystem, ensuring that innovative Victorian companies have the necessary capital to remain, expand, and fuel statewide economic growth.

Here is a detailed look at the five funds receiving cornerstone investments:

Virescent Ventures Fund II Virescent Ventures stands as Australia’s largest and most active dedicated climate technology investor. Originating from the Clean Energy Finance Corporation (CEFC), the firm manages over $500 million across two funds and has completed 40 investments to date. Its portfolio spans clean energy, sustainable agriculture, the circular economy, and smart cities. Fund II builds on the successful track record of its predecessor, investing from seed to growth stages with a focus on maximising both emissions reduction and commercial returns. It has already invested in multiple innovative companies, including Victorian-headquartered firms Relectrify, which developed a world-leading battery solution, and Amber Electric, which helps energy users maximise the value of their solar panels, batteries, and electric vehicles.

SYNthesis BioVentures Fund I Established in Victoria by Professor Andrew Wilks, a renowned researcher and entrepreneur in oncology and haematology, this fund’s mission is to identify a high-potential, scientifically robust pipeline of therapeutic assets. The focus ranges from early discovery through pre-clinical proof of concept and into clinical studies, leveraging the team’s deep expertise in immunology, immuno-oncology, and inflammatory diseases. Over 80 percent of SYNthesis BioVentures’ investments are expected to be in Victoria, capitalising on its extensive networks with Victorian Medical Research Institutes.

Scale Venture Fund 1 Scale’s investment strategy addresses a clear gap in the venture capital market: backing female founders. While women-led startups are becoming more common, only 3 percent of venture capital goes to all-women founding teams, and under 20 percent goes to startups with at least one woman co-founder. Scale Investors was founded in Victoria twelve years ago as an angel syndicate network. This unique background provided the team with deep, hands-on experience in sourcing, backing, and supporting female founders, particularly those who are underrepresented and face unique challenges in accessing capital and professional networks.

Galileo Ventures Fund II Galileo Ventures is a pre-seed and seed venture capital firm that backs exceptional emerging founders building new technology. Its first fund is a top decile performer with investments in leading Australian companies like Relevance AI, Andromeda, and Tixel. The firm’s founder-led thesis provides its portfolio companies with deep operational support to expand globally. Galileo believes in equitable access to partner-level feedback, operating a unique no-introductions-needed funding process. Its portfolio has attracted investment from leading global funds, including Andreessen Horowitz, Insight Partners, and Peak XV, alongside top local VCs. Fund II is a multi-sector, technology-focused fund investing between $250,000 and $1 million into startups during their first rounds.

North American Healthcare Fund The fifth investment involves a cornerstone commitment to a specialist North American healthcare fund manager as it launches its first Australian fund. Established 20 years ago, the manager has successfully launched five healthcare funds, deploying approximately $500 million USD into around 100 portfolio companies with a global healthcare ecosystem view and a focus on underserved regions. The firm has delivered more than 30 portfolio company exits, six of which reached valuations exceeding $1 billion USD in the past six years. The new Australian fund will be based in Victoria, and its portfolio companies will be Australian-domiciled or have significant management operations, intellectual property, or other activities like R&D occurring in Australia. At least 25 percent of the portfolio must be based in Victoria, aligning with the terms of Breakthrough Victoria’s investment.

Supporting Statements

Breakthrough Victoria CEO Rod Bristow stated, “Breakthrough Victoria is committed to boosting investment in Venture Capital funds, aligning with Victoria’s Economic Growth Statement. Since 2021, we’ve leveraged over $1.3 billion in private co-investment capital. This initiative will further solidify our role in the Victorian innovation ecosystem, ensuring innovative companies have the capital to grow and drive economic growth for our state.”

Minister for Economic Growth and Jobs Danny Pearson commented, “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. This investment is a catalyst to significantly increase the venture capital available to support innovation-intensive Victorian companies, transforming Victoria’s economy and creating highly skilled jobs.”

Samar Mcheileh, Founder of Scale Venture Fund 1, said, “Australia, despite its size, is a ‘unicorn factory’ with extraordinary quality and volume of innovators. Yet, we’ve inadvertently missed a massive opportunity right in front of us: women entrepreneurs. The market inefficiency lies in the disconnect between the proven performance of women-led teams and the minimal capital they receive. We’re excited to bridge this gap, demonstrating that by backing these founders, we can unlock significant value and drive innovation globally. The quality of ventures emerging from Australia, led by women, is truly exceptional.”

Ben Gust, Managing Partner of Virescent Ventures Fund II, added, “Climate change is both the biggest threat and biggest opportunity of our generation. Australian entrepreneurs are rising to the challenge and seizing this unprecedented economic opportunity by developing world-leading technologies and business models to address these issues in incredibly smart, commercial and innovative ways. Virescent Ventures is proud to have already supported the growth of several fantastic Victorian climate technology companies including JET Charge, Relectrify, Xefco, Amber Electric, GreenSync, and Carbon Revolution. With Breakthrough Victoria’s support, our second fund will continue to build a portfolio of early-stage climate focused companies that drive innovation, create new jobs and power sustainable growth, while creating a better environment for future generations and playing a leading role in the transformation of the global economy.”

Professor Andrew Wilks, Co-founder of SYNthesis BioVentures Fund I, noted, “Our team at SYNthesis BioVentures is delighted to be one of the recipients of this significant capital allocation. Victoria has led the way in its support for life science research, and we believe that Breakthrough Victoria has made exactly the right call by backing life science investors across the biotech capital stack. We find extraordinary science wherever we look, and we are keen to invest our funds and our experience into the therapeutics that lie beyond.”

Hugh Stephens, Co-founder of Galileo Ventures Fund II, stated, “Despite the headlines, the founders keep telling me that pre-seed capital is still a mirage , plenty of talk, but little water when you get close. As Australia’s leading industry agnostic pre-seed and seed fund, we’re proud to fill that missing gap for emerging ‘unproven’ founders, with almost half of our first fund deployed into Victorian companies. As a proud Victorian, I’m eager to see more local startups thrive, enabled by Galileo’s global connections to ensure that founders have the right tools to scale.”

(Source: ITWire Australia)