Innovation Victoria will bring together LaunchVic, the state’s startup ecosystem development body, and Breakthrough Victoria, its technology investment fund, into a single organisation
For the better part of a decade, Victorian founders have had two distinct places to turn for government support. LaunchVic handled ecosystem development, early-stage programs, accelerators, and grants for founders at the beginning of their journey. Breakthrough Victoria focused on later-stage commercialisation, sector-specific research translation, and institutional investment in areas like life sciences, food and agriculture, and advanced manufacturing.
From the second half of 2026, those two bodies become one.
The Victorian Government this week officially confirmed the new organisation will be called Innovation Victoria, with Rod Bristow appointed as its inaugural CEO. Bristow steps across from his current role as CEO of Breakthrough Victoria, bringing a background in finance, investment, and environmental markets to the merged entity.
“Innovation Victoria isn’t about starting again or leaving anything behind. It’s about bringing together what already works and connecting it purposefully to support founders, researchers and investors to be successful,” Bristow said.
“We’re integrating innovation ecosystem development and research translation and investment. Over time this will create a system that’s easier to navigate and better positioned to support ideas from idea through growth to global scale,” he said.
The consolidation follows an independent review of Victoria’s public sector spending that recommended the state consolidate and scale back its industry support activities, finding substantial opportunities to reduce and streamline entities through carefully targeted merging and cessation.
The leadership transition also marks the end of two significant tenures. LaunchVic CEO Kate Cornick, who led the agency for close to a decade, has been appointed CEO of the Tech Council of Australia. Breakthrough Victoria Chair and former Victorian Premier John Brumby, along with LaunchVic Chair Leigh Jasper, co-founder of Aconex and Firmable, will both depart their roles as the new organisation is established. A process to appoint a new chair and board for Innovation Victoria is currently underway.
The numbers behind the merger
The scale of what the two agencies built makes the merger significant for anyone paying attention to Victoria’s innovation economy.
Since its establishment in 2016, LaunchVic has directly supported more than a third of the state’s startups, helping grow Victoria’s startup ecosystem to more than 4,300 companies and unlocking more than $1.5 billion in private sector capital. The government’s own figures put the ecosystem’s current value at $139 billion, representing nearly 20-fold growth since LaunchVic began.
Breakthrough Victoria has committed $497 million across 91 investments, attracting $1.4 billion in co-investment. Its portfolio is on track to generate $5.3 billion in economic impact for Victoria by 2035, with a focus on sectors where Victoria demonstrates particular strength, including life sciences, food and agriculture, and advanced manufacturing.
Former Breakthrough Victoria Chair John Brumby framed the merger in terms of building on that foundation. “Breakthrough Victoria was always conceived as a long-term institution. What’s exciting about Innovation Victoria is that it builds on that foundation, connecting capital, capability and ecosystem support into a stronger, more coherent system that backs innovation over the long haul,” he said.
What the startup sector thinks
The merger has not been universally welcomed. When the decision to wind down LaunchVic as a standalone agency was first announced in December 2025, the reaction from Victoria’s startup community was swift and pointed.
“I think it’s crazy,” said Michael Batko, outgoing chief executive of Startmate, who described LaunchVic as the gold-standard model of public startup support, pointing to its independent team, clear strategy, genuine expertise, and consistent follow-through.
Particular concern centred on programs supporting underrepresented founders. Recipients of the Alice Anderson Fund, a $10 million co-investment fund supporting women-led startups through equity investments and grants, expressed concern about whether the unique fund would survive the restructure, with one founder describing the decision as “devastating” and warning it threatened to dismantle years of work that had made Victoria the leading place to start a startup in Australia.
The merger also sparked broader concerns across the startup sector about the future of grants, accelerators and early-stage funding programs.
Bristow has acknowledged those concerns directly, pledging continuity through the transition and committing that existing support and investments remain in place while the new organisation takes shape.
What to do if you are a Victorian founder
LaunchVic and Breakthrough Victoria will continue operating as usual until Innovation Victoria is fully established, with existing funding and investments remaining in place throughout the transition. Innovation Victoria is expected to go live with a full chair, board, and CEO structure in place in the second half of 2026.
For founders who have been considering applying for LaunchVic grants, accelerator programs, or Breakthrough Victoria investment, the advice is to continue engaging with both organisations through their existing channels. The transition period is designed to maintain momentum, not disrupt it.
What Innovation Victoria will ultimately look like in terms of specific programs, funding rounds, and eligibility criteria has not yet been confirmed. The appointment of a new chair and board is still underway, and the finer details of how the merged entity will operate are expected to become clearer as those appointments are finalised.
Minister for Economic Growth and Jobs Steve Dimopoulos framed the ambition clearly. “We are focused on the future, supporting more founders, entrepreneurs and investors to grow and succeed in Victoria, while driving economic growth, creating high-skilled jobs and strengthening our global competitiveness,” he said.
For Victorian SME owners watching from the sidelines, the message is to stay engaged, keep an eye on both agencies’ existing channels for program updates, and expect more detail on Innovation Victoria’s structure and offerings before the end of the year.
Dynamic Business previously covered the original merger announcement in detail. Read that piece here.
