Highlights

• Breakthrough Victoria invests $75 million in five venture capital firms supporting climate-tech, life sciences, and female founders.
• Each VC will commit 25% of its total fund capital to Victorian startups.

The Victorian government is channelling $75 million into five venture capital (VC) firms through Breakthrough Victoria, its investment arm. The move aims to grow climate-tech, life sciences, and female-led startups.

The investment also includes a cornerstone investment in a US healthcare fund that is launching its first Australian venture. Each of the selected firms has agreed to put 25% of their total fund capital into Victorian companies to ensure that the state benefits from this economic initiative.

Breakthrough Victoria CEO Rod Bristow said the organisation’s funding aligns with the Victorian Economic Growth Statement released in December last year. Since 2021, Breakthrough Victoria has leveraged over $1.3 billion in private co-investment capital.

Read More: KPMG: Clean Tech VC Funding Surges in South West England

This new funding round is expected to add momentum to the innovation ecosystem in Victoria, which gives fledgling companies the financial resources they need to grow within the state’s economy.

Among the recipients, Virescent Ventures, backed by the Clean Energy Finance Corporation, has received investment for its second fund. The company already manages more than $500 million and has financed about 40 projects, including JET Charge, Relectrify, and Amber Electric.

Managing Partner Ben Gust said climate change is a double-edged sword, which presents a major risk as well as a business opportunity. With this funding, the company aims to back early-stage climate-focused enterprises that create jobs and promote sustainable growth in Victoria.

In the life sciences sector, SYNthesis BioVentures Fund I, founded by oncology expert Professor Andrew Wilks, will channel funds into biomedical innovation and therapeutic research from discovery to clinical studies. More than 80% of its investments are expected to take place in Victoria.

Also Read: VC Giants Join Forces to Scale Climate Tech Startups

Professor Wilks said Breakthrough Victoria’s decision aligns with the state’s continued leadership in life science research.

At the same time, Scale Venture Fund I, which backs female founders, is another recipient. Managing Partner Samar Mcheileh said that women entrepreneurs are a largely untapped resource in venture capital markets.

She said her fund will help close the gap between the proven performance of women-led businesses and the limited capital they receive.

Meanwhile, Galileo Ventures Fund II plans to invest between $250,000 and $1 million in the first fundraising rounds of startups. Its first fund supported companies such as Relevance AI and Tixel.

Cofounder Hugh Stephens said that early-stage capital is still hard to find for new founders, describing it as “a mirage.” He also added that Galileo aims to fill this gap for emerging entrepreneurs, almost half of whom are from Victoria, by connecting them to global investors.

See Also: ESG Startups Captured 41.5% of Early-Stage VC in Australia in 2024

On the whole, this $75 million investment initiative adds to Breakthrough Victoria’s funding portfolio, which already includes Tin Alley Ventures and partnerships with seven universities under its University Innovation Platform.

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Source: Startup Daily