Biomedical Translation Fund (BTF)

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Australia’s Biomedical Translation Fund (BTF) is a government-led, venture capital co-investment program that accelerates the commercialisation of medical innovations by funding early-stage biomedical companies.
What are the main aims and objectives?

The Biomedical Translation Fund aims to help promising Australian biomedical discoveries become market-ready products and technologies. Its main goal is to bridge the funding and support gap (“valley of death”) between research and commercialisation, particularly for early stage health and medical startups. By investing in companies with annual revenues under $25million that operate mostly in Australia, BTF targets barriers like limited capital, scarce business expertise, and a tendency for intellectual property to go offshore early. The objectives are to deliver long-term health benefits for Australians, create jobs, boost local manufacturing, and strengthen Australia’s position as a global leader in life sciences and health innovation.

How does the program work?

The BTF works as a co-investment fund, pooling money from the Australian government (Commonwealth capital) and matching it with private sector investment. In total, about $501.25million has been committed to the Fund: $250million from the government, $251.25million from private investors. The Fund is managed by three licensed private sector venture capital firms (Brandon Capital Partners, OneVentures Management, and BioScience Managers). These managers select and invest in eligible companies after thorough screening and diligence processes. Investments support the development and commercialisation of therapeutics, pharmaceuticals, medical devices, diagnostics, and digital health services.

BTF does not fund large or non-profit entities—the focus is strictly on companies with most assets and staff in Australia. The funding helps startups move projects from the lab into late-stage clinical trials, scale their operations, and build a foundation for future growth. In addition to capital, fund managers offer mentorship, strategic advice, and networks to accelerate company progress. Funding is drawn down as needed, following strict reporting and governance rules. Participation is ongoing, and companies can apply at any time, provided they fit eligibility criteria. Applicants typically receive a mix of financial support and tailored commercialisation guidance, helping them overcome management and capital challenges that often block progress.

What is the overall cost?

The BTF was launched in 2016 with $250million from the government and $251.25million matched by private sector investors, making total available funds about $501.25million. All Commonwealth capital is invested via licensed fund managers; companies do not pay fees to access the program.

How was it implemented?

The Biomedical Translation Fund (BTF) was announced in December 2015 as part of Australia’s National Innovation and Science Agenda and officially launched in December 2016. It was created to fill a clear gap in Australia’s biomedical innovation landscape, where many promising research discoveries stalled before reaching market-ready stages due to lack of risk capital. The government recognised that early-stage biomedical ventures often faced years of development and regulatory hurdles before attracting large-scale private investment, creating the so‑called “valley of death” for innovation.

The program is jointly overseen by the Department of Health and the Department of Industry, Innovation and Science, with high-level governance provided by Innovation and Science Australia. Detailed operational guidelines and eligibility criteria were developed under ministerial direction to ensure the fund targeted the right stage of companies and maximised public benefit. AusIndustry was tasked with day‑to‑day program administration, maintaining oversight of compliance and performance reporting.

To implement the fund, the government undertook a competitive licensing process to select experienced private sector venture capital managers. Three fund managers — Brandon Capital Partners, OneVentures Management, and BioScience Managers — were appointed. Each brought specialist expertise in biomedical investment, global networks, and a track record of guiding early‑stage companies to later‑stage success. These firms are responsible for sourcing, vetting, and investing in eligible biomedical companies, as well as providing mentorship and strategic support.

The BTF’s structure required that each dollar of Commonwealth capital be matched by private sector investment, ensuring a shared-risk arrangement and increasing the leverage of public money. Capital was allocated to each fund manager within defined limits to ensure diversity of investments and to prevent concentration risk. Fund managers draw down capital gradually over the investment period, subject to agreed milestones, governance checks, and reporting requirements.

The timeline for implementation included:

  • 2015 – Announcement of BTF under the National Innovation and Science Agenda.
  • 2016 – Program launch, publication of program guidelines, selection and licensing of fund managers.
  • 2017 onwards – First investments made in eligible companies; ongoing portfolio growth and monitoring.
  • 2018–2025 – Continued investments, annual reporting to government, and periodic evaluations of fund performance.

No additional permanent public service staffing was required for delivery, as fund managers assumed primary responsibility for investment activities. However, specialist expertise was embedded in both government oversight teams and the investment managers to ensure rigorous due diligence, strategic portfolio management, and transparent reporting. The structure and processes established at launch remain in place, providing stability and consistency for participating companies and investors.

What impact has been measured?

There is currently no available information on the impact of the program. 

What lessons can be learned?

BTF’s eligibility rules exclude non-profit, academic centres and some larger or international collaborations, which may limit sector diversity. The co-investment model multiplied funding and expertise but rigid capital allocations and capped management fees can restrict flexibility as market needs change. The Fund has made substantial progress on “valley of death” challenges, but some gaps remain—especially in late-stage and global scale-up support. Complex governance and reporting requirements can slow decision-making for urgent clinical opportunities.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom