The Victorian government has officially launched Innovation Victoria, a new agency created by merging the state's startup accelerator LaunchVic with the $2 billion investment fund, Breakthrough Victoria. This strategic consolidation aims to provide a unified and streamlined support system for the state's burgeoning technology sector. The new entity will be led by former Breakthrough Victoria CEO Rod Bristow, who steps into the chief executive role.
A New Era for Victorian Innovation
Operating from July 1, Innovation Victoria is designed to serve as a single, connected organization for the state's innovation ecosystem. The government's objective is to establish a clearer "front door" for founders, researchers, and investors seeking support and capital. This move intends to help more local ideas transform into successful companies that can compete on a global scale.
Leadership and Governance
The new agency's board will be chaired by Geoff Tarrant, co-founder of the construction tech startup Payapps, with Monique Conheady serving as deputy chair. This transition sees the departure of former LaunchVic chair Leigh Jasper and CEO Dr Kate Cornick, who now leads The Tech Council of Australia. The new leadership brings significant entrepreneurial and investment experience to guide the organization's strategic direction and foster growth.
Building on a Strong Foundation
Innovation Victoria inherits the significant legacies of its predecessor organizations, which have been credited with fueling substantial growth. LaunchVic was instrumental in expanding the number of Victorian startups nearly twenty-fold during its decade-long tenure. Meanwhile, Breakthrough Victoria committed over $500 million across more than 100 investments, successfully attracting an additional $1.5 billion in private capital.
The state's startup scene, now valued at $139 billion with over 4,400 companies, has shown remarkable momentum. According to government figures, Melbourne now ranks third globally for startup creation, surpassing international hubs like Sydney, Singapore, and Berlin. This vibrant environment provides a strong base for Innovation Victoria's mission to further accelerate growth and global competitiveness.
Navigating Challenges and Opportunities
The merger occurs amidst a complex financial landscape for the state and the entities involved. Breakthrough Victoria faced recent industry criticism and reported a $5.7 million loss in the last fiscal year, alongside a $360 million budget reduction over four years. Despite challenges, including a portfolio company entering administration, the fund also recorded significant wins, such as a five-fold return from Infleqtion's public listing.
Future Outlook and Strategic Goals
Looking ahead, Innovation Victoria aims to build on this foundation by aligning the right capabilities, capital, and connections for founders. CEO Rod Bristow stated the goal is to take the state's fast-growing ecosystem to the next level. The organization will focus on providing tailored programs, expert advice, and investment to help more local companies scale faster and attract global investment.
Chair Geoff Tarrant emphasized that uniting the strengths of the two former entities creates a more connected pathway for innovation. He noted that this will enable more Victorian ideas to scale, attract investment, and further build the state's technology sector. The agency's mandate is to strengthen connections across the ecosystem while drawing more capital into Victoria's promising ventures.
The establishment of Innovation Victoria marks a pivotal new chapter for the state's technology landscape, consolidating resources into a single, powerful entity. By combining LaunchVic's ecosystem development expertise with Breakthrough Victoria's investment power, the agency is positioned to amplify support for startups at every stage. Its success will be measured by its ability to foster the next generation of global companies from Victoria.