TLDR:
- Victoria’s Breakthrough Victoria venture capital fund is under scrutiny for investing in a US space tourism company.
- The fund, totaling $2 billion, has faced criticism for lack of transparency and questionable investment decisions.
In a recent 7.30 report by Rhiana Whitson, concerns were raised about Victoria’s $2 billion venture capital fund, Breakthrough Victoria, in light of the state’s increasing debt levels. The fund made headlines for investing $37 million in a US stratospheric exploration company, World View, known for its plans for space tourism. Critics, including economists and venture capitalists, questioned the rationale behind the investment, especially given Victoria’s financial constraints.
The investment was made just days before the Treasurer announced the state budget, drawing attention to the controversial nature of Breakthrough Victoria’s operations. Critics raised concerns about the lack of transparency in the fund’s decision-making process and the potential risks involved in such ventures. Additionally, the fund has been criticized for its high number of staff and the hefty salary of its CEO, raising eyebrows about its efficiency and effectiveness.
Economists highlighted the pressing issue of Victoria’s soaring debt levels, expected to reach $188 billion by 2028, and the implications of allocating funds to ventures like space tourism instead of crucial services like healthcare and education. Despite some budget cuts, the state’s financial predicament remains a major concern and has sparked debates about the government’s priorities.
Overall, the article sheds light on the challenges faced by the Victorian government in managing its finances and the scrutiny faced by Breakthrough Victoria for its investment decisions, particularly in the realm of space tourism.
