Breakthrough Victoria Annual Report 2023 - 24

Breakthrough Victoria’s third annual report reveals a year of robust growth and strategic investment, emphasising the organisation’s mission to foster innovation that benefits the people of Victoria.

Underpinned by a patient capital model, BV has now committed over $350 million across 44 investments, positioning the state as a leader in research commercialisation and emerging technologies.

A Year of Strategic Investments

The Honourable John Brumby, Chair of Breakthrough Victoria, emphasised the organisation's foundational belief that "good ideas should be developed locally for the benefit of Victorians."

He noted that the past financial year was particularly busy, with approvals for 21 new investments, including 15 new companies and six follow-on investments.

"Our portfolio companies embody our mission of investing in innovation for impact," Brumby stated, showcasing a diverse range of sectors from health technologies addressing peanut allergies to advancements in clean energy.

Brumby also acknowledged the challenging global financial landscape, which has tightened capital access for early-stage companies.

"This underscores the need for patient investors like Breakthrough Victoria," he remarked, highlighting the organisation's role in providing stability and confidence to entrepreneurs amid economic uncertainty.

Prof Douglas MacFarlane - Founder and CSO of Jupiter Ionics with The MacFarlane Simonov Ammonia Cell

Navigating Global Challenges

The global economic climate has been less favourable for early-stage companies, with inflationary pressures and central bank interest rate decisions restricting capital access.

Despite this, Brumby emphasised that BV’s presence in the market provides stability for other investors and startups, enabling innovation to flourish even in challenging times.

Since inception BV has seen $650 million of co-invested capital (excluding public grants), this equates to $2.67 of capital leveraged from direct investments for every $1 invested by BV.

"While Victoria excels in entrepreneurial activity, other states are also investing heavily," Brumby noted, advocating for agile and proactive policies to maintain Victoria’s competitive edge.

In a further bid to help turn great ideas into companies making societal impact BV this past year announced a collaboration with leading educational institutions through the University Innovation Platform.

This partnership, which includes Deakin, La Trobe, Melbourne, Monash, RMIT, and Swinburne universities, matches funding to accelerate research commercialisation efforts, driving innovation from Victorian campuses into the wider market.

"Our goal is to change the paradigm — to turn more innovative ideas into successful products and businesses through investment," he said, pointing to the vast potential within the state’s highly skilled workforce.

Scaling Up for the Future

CEO Grant Dooley lauded the company’s efforts over the past year, calling it "a remarkable year" for BV.

He noted that since its inception, the organisation has received over 1,000 potential investment opportunities, reflecting the demand for early-stage capital in Victoria’s innovation and technology sectors.

With 21 new investments approved this financial year, Dooley emphasized BV’s growing impact.

"Our team comprises talented and passionate individuals with expertise in investment, finance, government affairs, risk, asset management, environmental, social and governance (ESG), and sector-specific technologies," he said, acknowledging the vital role of his staff in driving the organisation’s success.

Dooley also highlighted BV’s operational advancements, noting that the organisation is now ready to support companies solving globally significant problems.

These advancements are expected to propel BV into its next phase of growth, with a focus on industries of the future and sustainable prosperity for Victoria.

"By investing in and supporting ideas, businesses, and technologies that can change lives for the better," Dooley concluded, "the team at BV is driven not solely by financial returns but also by the desire to improve the wellbeing of Victorians and people around the world."

Neo-Bionica specialises in turning medical device ideas into clinical reality

Looking Ahead

With the strategic capital commitments in place, BV is well-positioned to continue driving innovation that has a meaningful impact both locally and globally. As Brumby expressed, "We invest in innovation for impact," and with the backing of the Victorian government and its partnerships with world-class research institutions, BV is poised to foster the next generation of transformative technologies.

As Victoria navigates the global economic landscape, BV remains a critical player in ensuring the state’s innovation ecosystem continues to thrive, turning local ideas into global solutions and bringing breakthrough technologies to market that will help transform people’s lives.