Breakthrough Victoria invests $75 million in venture capital funds to ‘build Victoria’s innovation ecosystem’

Breakthrough says these investments bring “dedicated investment management expertise into Victoria, as well as leverage private capital to help scale Victoria’s innovation ecosystem”.

“Among the recipients are Australia’s largest climate-tech capital firm, a fund led by a renowned oncology researcher and entrepreneur, 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 operations in Australia,” explains Breakthrough.

“All five funds have committed to allocating 25 percent of the total capital in the fund to Victorian companies.

“Late last year the State Government released Victoria’s Economic Growth Statement, incorporating a call for ‘Breakthrough Victoria to boost its investment in Venture Capital funds to crowd in more private capital to the state to turbocharge investment in Victoria.

“This initiative adds to Breakthrough Victoria’s existing fund investment portfolio of Tin Alley Ventures, and our seven University Innovation Platform partnerships. Private co-investment alongside Breakthrough’s cornerstone investment in the Funds will add to the more than $1.3 billion in private co-investment capital Breakthrough Victoria has already leveraged.”

According to Breakthrough, with 69 investment commitments totalling over $480 million, BV is “one of Australia’s most active early-stage technology investors”.

“A recent independent report by EY-Parthenon found BV’s portfolio is on track to generate $5.3 billion in economic impact for Victoria by 2035. It also found that 88 per cent of early-stage investment in Victoria in 2024 came from BV-backed investors, and 76 per cent of all venture-stage investment in Victoria in 2024 involved BV.

“Investing in Venture Capital funds strengthens Breakthrough Victoria’s pivotal role in transforming the Victorian economy by driving successful IP and research commercialisation. This solidifies BV as a cornerstone of the Victorian innovation ecosystem, supporting all stakeholders and ensuring innovative companies in Victoria have the capital they need to stay, grow, and fuel economic growth for the state.”

Further detail on the Funds in which Breakthrough Victoria has made a cornerstone investment is as follows:

Virescent Ventures Fund II
Virescent Ventures is Australia’s largest and most active dedicated climate technology investor. Born out of the Clean Energy Finance Corporation (CEFC), Virescent Ventures manages more than $500 million across two funds and has made 40 investments to date. Its portfolio spans clean energy, sustainable agriculture, circular economy and smart cities.
Virescent Ventures Fund II is continuing to build on the successful track record of Fund I, investing from seed through to growth stages with a focus on maximising both emissions reduction and commercial outcomes. It has already invested into multiple innovative companies, including Victorian-headquartered companies Relectrify which has developed a world-leading battery solution, and Amber Electric which helps energy users maximise the value of their solar, batteries and EVs.

SYNthesis BioVentures Fund I
SYNthesis BioVentures Fund I was established in Victoria by Professor Andrew Wilks, a renowned researcher and entrepreneur in the fields of oncology and haematology.

The overall theme is to identify a high-potential, scientifically robust pipeline of therapeutic assets, from early discovery through pre-clinical proof of concept and into clinical studies, leveraging the team’s expertise in immunology, immuno-oncology, and inflammatory diseases across multiple modalities and indications. Over 80 per cent of SYNthesis BioVentures’ investments are expected to be in Victoria, leveraging its extensive networks with the Victorian Medical Research Institutes.

Scale Venture Fund 1
Scale’s investment thesis is built on a compelling opportunity in the venture capital landscape: backing female founders. Although women-led startups are increasing, just 3 per cent of venture capital goes to all-women founding teams, and under 20 per cent to startups with at least one-woman co-founder.
Scale Investors was founded in Victoria twelve years ago as an angel syndicate network operating on a deal-by-deal basis. This unique foundation gave the team deep, hands-on experience in sourcing, backing, and supporting female founders—particularly those who are underrepresented and face unique challenges in accessing capital and networks.

Galileo Ventures Fund II
Galileo Ventures is a pre-seed and seed VC firm backing exceptional emerging founders building new technology. Galileo’s Fund I is a top decile fund with investments in leading Australian companies like Relevance AI, Andromeda and Tixel.
Galileo’s founder-led thesis backs their portfolio to expand globally with deep operational support. The firm believe in equitable access to partner-level feedback through a unique no-introductions-needed funding process. The Galileo portfolio has attracted investment from leading global funds, including Andreessen Horowitz, Insight Partners, and Peak XV, alongside top local VCs.

Galileo Fund II is a multi-sector, technology-focused fund investing $250,000 – $1 million into startups at their first rounds. Galileo’s investors include leading institutions, family offices, founders and operators from Australia and the US.

“The fifth investment will see Breakthrough Victoria make a cornerstone investment with a specialist North American healthcare fund manager as they launch their first Australian fund. Established 20 years ago, the fund manager has successfully launched five new healthcare funds since, deploying around $500 million USD into around 100 portfolio companies, with a global healthcare ecosystem view and focus on underserved regions,” says Breakthrough.

“The firm has successfully delivered more than 30 portfolio company exits (six of them at >$1billion USD valuation in the past 6 years) and DPI for investors in 19 of those years.

‘The manager’s Australian fund will be set up in Victoria and will see its portfolio companies Australian-domiciled or have material management operations, IP or other activities like R&D occurring in Australia. In addition, at least 25% of the portfolio must be based in Victoria, aligned to BV’s cornerstone capital.

Comments by Breakthrough Victoria and others:

“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,” says Breakthrough Victoria CEO Rod Bristow.

Minister for Economic Growth and Jobs Danny Pearson:
“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 increases the venture capital available to support innovation-intensive Victorian companies , transforming Victoria’s economy and creating highly skilled jobs.”

Founder of Scale Venture Fund 1 Samar Mcheileh:
“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.”

Managing Partner of Virescent Ventures Fund II Ben Gust:
“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, Carbon Revolution and others.

“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.”

Co-founder of SYNthesis BioVentures Fund I Professor Andrew Wilks:
“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.”

Co-founder of Galileo Ventures Fund II Hugh Stephens:
“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.”