TLDR:
- Victoria’s state-run $2 billion venture capital fund, Breakthrough Victoria, is under scrutiny for lack of transparency and high risks involved.
- There are calls to scrap the fund as Victoria faces record debt levels and questions about the fund’s operations.
Article Summary:
Calls for more transparency surround Victoria’s state-run $2 billion venture capital fund, Breakthrough Victoria, which aims to invest in startups and expanding businesses using taxpayers’ money to generate a return. Critics view this as a high-risk venture, especially given Victoria’s high debt levels of $126 billion. The fund, created in 2020, has faced scrutiny for lack of transparency, with limited information available on investments and operations. Breakthrough Victoria has invested in multiple companies, with mixed outcomes such as investing $30 million in Seer Medical, which faced job losses and required an additional $4 million to stay afloat. Despite concerns, Breakthrough Victoria is exempt from Freedom of Information requests, leading to calls for more accountability and oversight.
The fund has also faced criticism for its high operating costs, including a CEO salary of $500,000 a year and employing 52 people at a cost of almost $10 million. With internal upheaval and directors resigning, questions have been raised about the fund’s expertise in picking successful investments. Critics argue that the fund should be wound up, with concerns about the sustainability and benefits of such a large public investment. The lack of transparency, coupled with financial risks and operational concerns, highlights the need for greater accountability and scrutiny surrounding Breakthrough Victoria and its significant role in Victoria’s venture capital landscape.
