Minister Danny Pearson announces the end of LaunchVic as an independent agency. Discover what’s changing for Victoria’s 3,500 startups
What’s happening: The Victorian Government is consolidating LaunchVic and Breakthrough Victoria into a single entity following a review that found duplication across government innovation initiatives. Minister for Economic Growth and Jobs Danny Pearson announced the decision, stating it will make it easier for businesses to start, scale and attract investment.
Why this matters: The decision to merge two agencies that the government’s own review described as playing valuable and effective roles creates questions about how support will be delivered during the transition and what the new structure will look like for founders seeking government backing.
The Victorian Government is bringing together LaunchVic and Breakthrough Victoria into a single entity, marking a significant restructure of how the state supports innovation and startup growth. The decision follows a comprehensive review into the state’s innovation and commercialisation entities.
Minister for Economic Growth and Jobs Danny Pearson announced the consolidation, framing it as a strengthening measure for Victoria’s innovation ecosystem.
“Victoria is a powerhouse for innovation and startups, and bringing these entities together will secure and strengthen that position to make it easier for startups to grow and succeed,” Pearson said.
“LaunchVic and Breakthrough Victoria play vital roles in growing startups, businesses, jobs and economic value across Victoria’s priority sectors,” he continued. “We are uniting the capabilities of Breakthrough Victoria and LaunchVic into a single entity to strengthen and streamline support, ensuring they continue their critical work.”
The review findings
Earlier this year, the Labor Government undertook a review into its innovation and commercialisation entities and supports to ensure they remain effective, efficient and positioned to deliver sustained impact into the future.
The Innovation and Commercialisation Review found Victoria’s innovation ecosystem is strong and well supported, with government investment playing a critical role in growing key sectors and capabilities.
However, the review also found there was duplication across government initiatives, and there was an opportunity to provide end-to-end support for businesses as they move through the commercialisation lifecycle.
The targeted and comprehensive review highlighted the valuable and effective role of the state’s innovation entities in tackling key challenges by improving access to knowledge, skills, networks and capital.
Following consideration of the review’s recommendations, as well as the recently released Silver Review into public sector efficiency, the Government decided to consolidate the capabilities of LaunchVic and Breakthrough Victoria to strengthen and streamline innovation support, driving Victoria’s long-term economic growth.
LaunchVic’s role in the ecosystem
Since 2017, Victoria’s startup ecosystem has grown to more than 4,300 companies, with LaunchVic unlocking more than $1.5 billion in private sector capital.
LaunchVic’s role was to grow the broader startup ecosystem by investing in programmes, projects and organisations that support startups and help them scale. The agency established several funds including the Victorian Startup Capital Fund, which received $60.5 million over three years to support early-stage startups, injecting much-needed early-stage funding into the startup and venture capital ecosystem.
Victoria’s startup community received an injection of $5.1 million from LaunchVic earlier this year. The Wade Institute of Entrepreneurship received $1 million to train early-stage investors in due diligence, raising capital, and portfolio management, whilst an additional $4.1 million was allocated across five accelerators, including ANDHealth, Melbourne Accelerator Program, MedTech Actuator, Startmate, and Startupbootcamp, to provide 165 Victorian startups with mentorship and resources.
The agency’s prestigious 30×30 programme aims to help Victoria’s fastest-growing scaleups achieve unicorn status, a valuation of $1 billion or more, by 2030. This fully subsidised, four-month programme offers a transformative opportunity for businesses to connect with mentors from some of Australia’s most successful unicorn companies, including Atlassian, Canva, and SEEK.
LaunchVic also supported programmes focused on underrepresented founders. According to LaunchVic CEO Dr Kate Cornick, migrants and refugees are underrepresented in the startup ecosystem, which has been dominated by Caucasian men. Part of the reason is that the venture capital industry has struggled with diversity and inclusion. In the same way that only 2 per cent of the world’s venture capital flows to female-led businesses, migrant and refugee entrepreneurs have struggled to attract venture capital.
The Alice Anderson Fund has invested in startups including Flowing Bee, an AI-driven behaviour insights platform that raised $1.6 million in an oversubscribed round.
In March 2024, LaunchVic introduced a new grant programme to bolster expert angel investment networks supporting early-stage startups. These grants, totalling up to $300,000, aimed to facilitate the establishment of angel groups focusing on specific industry verticals or technological innovations within the pre-seed and seed investment domain.
In August 2024, LaunchVic allocated $2.4 million in grants to seed eight new early-stage venture capital funds, each receiving $300,000. The funds, which included Australian Medical Angels, Ecotone Partners, and Era VC, established operations in Victoria to support the local startup ecosystem.
Breakthrough Victoria’s portfolio
Breakthrough Victoria’s portfolio is on track to generate $5.3 billion in economic impact for Victoria by 2035. The technology investment fund focuses on supporting research and development in sectors where Victoria demonstrates strength, including life sciences, food and agriculture, and advanced manufacturing.
The Government will now work closely with both entities to identify the best path forward to drive sustainable growth with a consolidated function. During this process, LaunchVic and Breakthrough Victoria will continue delivering their important work to ensure continuity and momentum.
The Victorian Budget 2025/26 provided $627 million investment to support business and grow the Victorian economy, including $240 million to deliver the Economic Growth Statement and its more than 40 initiatives in full.
The precise structure of the consolidated entity remains under development. Questions remain about how LaunchVic’s programmes, including the 30×30 initiative, angel investment grants, accelerator funding and support for underrepresented founders, will transition to the new structure.
What founders need to know
For Victorian entrepreneurs, particularly those in LaunchVic-backed programmes or planning to apply for support, the consolidation creates uncertainty about continuity and future programme availability.
Founders currently participating in LaunchVic initiatives should seek clarity on how their programmes will continue under the new structure. Those planning applications should confirm whether existing programmes will remain open during the transition and which entity will process them.
The consolidation represents a shift in how Victoria delivers innovation support, moving from two separate agencies with distinct focuses to a single entity providing what the government describes as end-to-end support for businesses moving through the commercialisation lifecycle.
The coming months will determine how the consolidated entity operates and whether it can maintain the momentum both agencies built. The government emphasises that support will continue during the transition, though specific details about programme transfers, staffing and operational structure remain to be confirmed.
For Victoria’s startup community, the consolidation raises questions about whether a single entity can effectively serve the diverse needs that two specialised agencies previously addressed. LaunchVic focused on ecosystem development, early-stage support and programmes for underrepresented founders, whilst Breakthrough Victoria concentrated on later-stage commercialisation and sector-specific research and development.
Whether the merged entity can maintain both focuses whilst achieving the efficiency gains the review identified as necessary will become clear as the new structure takes shape in 2025 and beyond.
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