TLDR:
- Victoria’s state-run $2 billion venture capital fund, Breakthrough Victoria, is under scrutiny for lack of transparency.
- The fund, created in 2020, aims to invest in startups and expanding businesses to generate returns for taxpayers.
Calls for more transparency around Victoria’s state-run $2 billion venture capital fund, Breakthrough Victoria, have been growing. The fund, established in 2020, uses taxpayers’ money to invest in startups and expanding businesses with the goal of generating returns for the state. However, concerns have been raised about the fund’s high-risk nature, lack of disclosure on investments, and operational costs.
One of Breakthrough Victoria’s first and most public investments was in epilepsy monitoring company Seer Medical, which later faced job losses and funding challenges. Despite setbacks, the fund injected an additional $4 million to support the struggling company. These actions have prompted questions about the fund’s decision-making process and the expertise of its leadership.
The fund’s exempt status from Freedom of Information requests has sparked further criticism, as it limits public scrutiny on how taxpayers’ money is being used. Calls for greater transparency and accountability have come from shareholders and external observers, who argue that the fund’s operations should be subject to higher levels of scrutiny given the significant taxpayer investment involved.
Breakthrough Victoria’s CEO, Grant Dooley, draws a salary higher than the Victorian Premier, raising questions about the fund’s operating costs and expenditure. With Victoria’s debt levels at a record high, concerns are mounting over the fund’s performance and its long-term impact on the state’s finances. The ongoing debate surrounding Breakthrough Victoria highlights the challenges and complexities of public venture capital investments, particularly in high-risk sectors.
