Innovation Victoria's Strong Foundation in Focus as Annual Reports Highlight Impact

November 1, 2026 

Innovation Victoria commenced on July 1, combining the strengths of predecessor organisations Breakthrough Victoria and LaunchVic. The final Annual Reports of Breakthrough Victoria and LaunchVic demonstrate Innovation Victoria’s robust foundations, with a combined track record of investment, innovation ecosystem development and economic value creation across Victoria.

The Annual Reports mark the conclusion of an important chapter for both predecessor organisations and the beginning of a new one, as Innovation Victoria brings together Victoria's leading innovation investment and ecosystem development capabilities into a single entity to deliver broader impact for Victoria through innovation. Beyond financial returns, both organisations have contributed to job creation, talent development, ecosystem capability and the attraction of private investment into sectors critical to the state's future prosperity, including health, clean economy, advanced manufacturing and digital technologies. 

Breakthrough Victoria’s 2025–26 results demonstrate delivery of its mission: deploying patient capital to strengthen Victoria’s innovation economy, support the commercialisation of promising ideas and creating long-term public value. The organisation delivered a net result from operations of $165.8 million, increased net assets by 36 per cent to $824.2 million, grew assets under management by 41 per cent and reduced expenses by 32 per cent—demonstrating the strength of the investment platform that now forms part of Innovation Victoria. 

Over its five-year investment period, Breakthrough Victoria delivered a surplus of $246.2 million while making 103 investment commitments across direct investments, venture funds and commercialisation infrastructure including a $25 million grant to the Jumar Bioincubator. These investments helped strengthen Victoria's innovation ecosystem, solving for breaks in capital availability in key sectors and at key stages to facilitate successful commercialisation of research and intellectual property.

In addition, Breakthrough Victoria was highly successful in attracting significant private capital alongside public funding and supporting the commercialisation of research and emerging technologies. On average, each investment attracted 11 private sector investors, demonstrating Breakthrough Victoria's ability to crowd in private capital and build confidence among co-investors. Collectively, the portfolio has generated more than $1.8 billion in public and private co-investment, significantly expanding the capital available to Victorian innovators and companies.

The portfolio also delivered strong early financial returns, including 2 successful and profitable exits in FY26, recycling capital back into the next commercialisation opportunity. With an internal rate of return (IRR) of 21.9 per cent, Breakthrough Victoria's performance aligns with global top-quartile venture capital funds and exceeds the median returns of Australian, US, European and global 2021 vintage VC funds. These results demonstrate the value of a disciplined, patient capital investment approach in building Victoria's innovation economy while generating strong financial outcomes.

LaunchVic’s final annual report shows it succeeded in delivery for the key reasons it was established: strengthening Victoria’s startup and entrepreneurial ecosystem, supporting founders and investors, building ecosystem capability and positioning the state as a leading destination for innovation and company creation.

Over more than a decade of operation, LaunchVic has played a significant role in the rapid growth of Victoria's startup ecosystem. Melbourne is now ranked third globally for startup creation growth, recording a 124 per cent increase, ahead of Sydney, Singapore and Berlin. The ecosystem has also become a major source of employment, with more than 68,000 people working in Victorian startups, representing an 86 per cent increase since 2020.

Investment activity has accelerated significantly over the same period. Annual capital raised by Victorian startups has increased by more than 1,000 per cent, growing from $214.9 million to $2.4 billion. As the ecosystem has matured, average deal sizes have also increased substantially, rising 178 per cent from $4.5 million to $12.5 million, reflecting the growing scale, ambition and investment readiness of Victorian startups. 

Innovation Victoria CEO Rod Bristow said the reports demonstrate why bringing the two organisations together creates a powerful platform for future growth.

Innovation Victoria enters its first year with a strong balance sheet, an established portfolio of investments, deep relationships across universities, industry and investors, and a proven track record of supporting innovation-led economic growth.  

As Innovation Victoria continues operations, the organisation is well positioned to accelerate innovation-led growth, crowd in greater private investment, support the next generation of Victorian companies and deliver long-term social, environmental and economic outcomes for Victoria. 

• Melbourne ranks 3rd globally for startup creation growth  

• Startup creation growth increased 124%, outperforming Sydney, Singapore and Berlin  

• More than 68,000 people work in Victorian startups  

• Startup employment has grown 86% since 2020  

• Annual startup capital raised increased from $214.9 million to $2.4 billion  

• Startup investment growth exceeded 1,000% over the past decade  

• Average deal size increased 178%, from $4.5 million to $12.5 million  

• Reflects the rapid growth, maturity and global competitiveness of Victoria's startup ecosystem  

• Demonstrates the long-term impact of founder support, ecosystem capability building and advocacy initiatives led by LaunchVic