Breakthrough Victoria, the Victorian state-backed venture fund, reported an operating surplus of A$165.8 million for fiscal 2026. Its net assets increased 36% to A$824.2 million. The fund merged with LaunchVic in July and now operates as Innovation Victoria.
Fund performance
Assets under management grew 41%, and expenses fell 32%. The fund recorded two profitable exits. Infleqtion listed on the NYSE, and World View was acquired by Ondas.
Five-year record
Over five years, Breakthrough Victoria made 103 investment commitments. Its investments attracted more than A$1.8 billion in public and private co-investment. The portfolio reached an internal rate of return of 21.9%.
Startup ecosystem growth
LaunchVic's final report shows Melbourne now ranks third globally for startup creation growth. Startup employment grew 86% since 2020 to more than 68,000 people. Annual capital raised by Victorian startups rose from A$214.9 million to A$2.4 billion.
Innovation Victoria enters its first year with a strong balance sheet and an established portfolio. The state election is set for November 28. The Opposition has pledged to wind up the fund and sell the portfolio if it wins.