Despite posting a second consecutive loss, the Victorian government’s tech investment fund is driving record co-investments, fueling Australia’s startup ecosystem and long-term economic growth.
The Victorian government’s flagship tech investment fund, Breakthrough Victoria (BV), has reported a $5.7 million loss for the 2025 financial year — but the story is far from grim.
Now four years into operation, BV has doubled down on its mission to back innovation, deep tech, and high-impact startups, even as traditional capital retreats from riskier frontiers.
A Year of Growth Behind the Loss
According to BV’s 2025 annual report, the loss — following a $3 million shortfall the previous year — stems from unrealised changes in investment value, foreign exchange fluctuations, and the cost of an office relocation under new CEO Rod Bristow.
Yet the broader numbers tell a different story. BV invested $118 million across 22 deals after evaluating 436 opportunities, marking an active and ambitious investment year.
Half of these were fresh investments in new startups and venture funds, alongside five follow-on deals and six co-investments through its University Innovation Platform.
Major Investments and the Seer Medical Rescue
Among the most notable moves was BV’s high-profile bailout of Seer Medical, a Melbourne-based medtech company that entered voluntary administration earlier in the year.
BV, which originally invested $30 million in Seer in 2022, returned to the table with a $40 million rescue package in partnership with Cadwell Industries and Singapore’s TrialCap. The move preserved local innovation jobs and reaffirmed BV’s willingness to back Victorian-grown technologies through tough cycles.
Financial Health and Efficiency Gains
Despite the overall loss, BV remains financially solid, boasting a cash balance of $291.9 million as of June 2025. This includes $138.9 million in capital funds for board-approved investments and $70.4 million in new government funding this year.
In a pointed response to critics, BV highlighted a continued decline in expense growth — with its management expense ratio dropping from 19.4% at launch to 3.4% in FY25, now sitting below CPI.
Total expenses increased by just $100,000 year-over-year to $17.8 million, signaling tighter fiscal discipline under Bristow’s leadership.
Strong Returns and Global Reach
Chair John Brumby noted that BV’s mission-driven focus is paying off. “Our investments have attracted over $1.29 billion in public and private capital, equating to $3.21 in additional capital for every dollar we commit,” he said.
The fund’s investment portfolio rose 23% to $321.5 million, with net assets growing to $605.2 million.
CEO Bristow added that BV’s Internal Rate of Return has outperformed public and private benchmarks, even beating the ASX Small Ordinaries Index since inception.
He also revealed that nearly 45.5% of BV’s portfolio is held in USD, reflecting a global investment strategy aimed at accessing high-growth tech markets worldwide.
Backing Breakthrough Startups
The fund’s latest round included support for Quantum Brilliance (synthetic diamond computing), Number 8 Bio (livestock methane reduction), Conflux (additive manufacturing), Harvest B (protein innovation), and Umps Health (aged care technology).
Each of these startups represents the kind of deep tech innovation BV says is vital for Victoria’s long-term economic growth and competitiveness.
Looking Ahead
While BV’s balance sheet shows a temporary dip, its strategic momentum — and the billions it has helped unlock — suggest a strong trajectory ahead.
As Bristow put it: “These non-cash losses reflect temporary market volatility, not a decline in our core strength. Breakthrough Victoria is positioning itself — and Victoria — for sustainable innovation-led growth.”
In short: Breakthrough Victoria may be in the red, but it’s clearly investing in the future. With billions in capital leveraged, expanding global reach, and a disciplined approach to growth, the fund is proving that smart risks can spark real economic transformation.
Founder – Rod Bristow
