The Breakthrough Victoria – University Innovation Platform (BVUIP) is an initiative designed to enhance the commercialisation of research from Victorian universities. To gain deeper insights into BVUIP, we've compiled a Q&A with Dr Olga Hogan, Senior Director of Pre-seed at Breakthrough Victoria. Dr Hogan has over 15 years of experience in early-stage investing in university research spin-outs and has been instrumental in developing BVUIP.
Currently the BVUIP has seven partnerships:
Since September 2023 when most partnerships were established, the BVUIP has already seen 12 start-ups receive funding and begin their commercialisation journey.
Q: What is the primary purpose of the Breakthrough Victoria – University Innovation Platform (BVUIP)?
Olga: BVUIP aims to bridge the gap between academic research and market-ready innovations. By establishing co-investment partnerships with seven Victorian universities— Australian Catholic University, Deakin University, La Trobe University, University of Melbourne, Monash University, RMIT, and Swinburne University of Technology—we provide matched funding to drive the commercialisation of university research through investments in startups.
What is unique about the program, is that Breakthrough Victoria works alongside the individual universities to co-design pre-seed co-investment partnerships, to ensure that breakthrough research moves from the lab to and into the market.
Q: What specific problem does BVUIP address?
Olga: Many groundbreaking research projects face challenges in transitioning from the lab to the marketplace, often referred to as the "valley of death." BVUIP addresses this by offering pre-seed investments, typically around $500,000, to nurture startups emerging from university research. This financial support helps researchers and entrepreneurs achieve the next value points that seed (investors other pre-seed) want to be re-risked. For example, conduct a pilot study demonstrating expected performance metrics.
Q. What does the process look like? Who decides what opportunities to invest in?
Olga: There are many less visible steps and interactions along the way. But in a nutshell, our university partners are responsible for identifying promising opportunities that often require further nurturing and support from university teams before they are ready to present to Investment Committees, which assess the opportunities and make recommendations based on team presentations, due diligence, and market opportunity analysis.
Q: Is there a place for other investors, who are comfortable with the same risk?
Olga: There is always a place for other VC investors. One consistent question the Investment Committee asks across all partnerships and from each team is: “Will the amount you are seeking be enough to de-risk the opportunity for the next round of investors?” If the answer is no, we encourage startups to secure co-investors. We are also mindful that capital raising often takes more than six months, and we don’t want founders to go through this process repeatedly. That’s why we welcome other investors joining the pre-seed round to help extend the startup’s cash runway. What I’ve noticed is that these co-investment arrangements often attract additional investors after the BVUIP Investment Committees approval.
Q: I understand all Investment Committees (IC) have two independent members. How does one can get involved in this work?
Olga: Yes, all investment committees -except one - include two independent Investment Committee members. One committee has only one independent member but also includes an independent board member. These individuals play a vital role in checking internal biases, providing impartial decision-making, and contributing expertise in areas such as market trends, technical domains, and regulatory landscapes.
Each university partnership has developed a required skills matrix based on that university needs as well as entrepreneurial experience.
The independent committee members are jointly approved by both the university and BV. If you are interested in becoming our next IC member, please reach out either to your university contact or myself to learn more.
Q: How did the idea for BVUIP originate?
Olga: Recognising the wealth of innovative research within Victorian universities and the challenges associated with commercialisation, Breakthrough Victoria sought to create a structured pathway to support and invest in university spinouts. By collaborating directly with universities, we aim to cultivate an ecosystem where research-driven startups can thrive, ultimately benefiting both the economy and society.
Q: Beyond funding, how does BVUIP support the entrepreneurial ecosystem?
Olga: BVUIP's impact extends beyond financial investments. We also co-fund with universities to create new roles that support researchers, helping them develop their work and providing a clear route to market by navigating the complexities of commercialisation.
Former founders and experienced entrepreneurs are engaged to mentor and share their insights with emerging startups, fostering a culture of knowledge exchange.
PhD students and university students gain exposure to real-world applications of research, inspiring entrepreneurial thinking and offering practical experiences that enhance their career prospects.
Q: What outcomes do you anticipate from BVUIP in the coming years?
Olga: We expect to see a significant increase in the number of successful startups emerging from Victorian universities, leading to the commercialisation of life-changing research and technologies. Since July 2023, across all pre-seed partnerships we have seen over 30 teams looking for investments. Watch this space for more announcements.
By providing early-stage funding and support, BVUIP aims to retain innovative ventures within Victoria, preventing the outflow of intellectual property and attracting international capital inflow, ensuring that the state becomes a hub for research-driven innovation.
Q. Where does the BV Fellowship fit into the University Innovation picture?
Olga: The Breakthrough Victoria Fellowship Program is a $7.5 million, multi-year initiative designed to foster research entrepreneurship in Victoria. By providing up to $150,000 per startup, the program aims to establish up to 50 new companies and create at least 50 jobs, nurturing entrepreneurial talent and enhancing future investment pipelines.
This Fellowship was designed to develop entrepreneurial talent who understand research. Every year, thousands of PhD students submit their thesis after spending at least three years conducting research, and most get a job outside of academia and leave deep tech ecosystem. Very few could further develop their research. The Fellowship aims to change that by investing in the 'D' of R&D.
We also know that PhD and early-career researcher groups tend to have the most balanced gender representation. Since we want to see more female entrepreneurs, we actively seek candidates from groups with higher female participation.
While the pre-seed Investment partnerships focus on accelerating the commercialisation of critical research through substantial investments and partnerships with universities, the Fellowship addresses a critical talent gap by directly supporting individual researchers and recent graduates. It provides them with the necessary funding and resources to transform their research into viable commercial ventures ready for pre-seed investments with universities, thereby cultivating the next generation of startup founders within Victoria's universities and medical research institutes.
Together, the Breakthrough Victoria Fellowship Program and the Pre-seed investment partnerships create a comprehensive ecosystem that supports both the infrastructural and human capital aspects of research commercialisation, positioning Victoria as a leader in translating academic innovation into real-world impact.