How Brandon Capital's biggest fund aims to keep Australian biotechs onshore
Australia's National Reconstruction Fund has invested $150 million in venture capital firm Brandon Capital in a bid to stop promising biotech companies from moving offshore.
Brandon Capital has closed its sixth biotech fund at $439 million with a $150 million cherry-on-top from Australia's National Reconstruction Fund Corporation (NRF), as the government seeks to help stem the flow of promising medical research leaving the country.
The investment brings Brandon Capital's BB6 fund to $439 million, making it the Melbourne-based firm's largest fund and pushing the NRF's total commitments above its $550 million financial year target. The fund will focus on Australian-developed therapeutics, vaccines and medical devices, with two-thirds of the NRF funding earmarked for late-stage companies and the remainder supporting early-stage ventures.
The government commitment represents a significant shift in how Australia funds its biotech sector, addressing what industry leaders describe as a critical capital gap that has historically forced promising companies offshore just as they approach commercial viability.
"The pipeline of promising science far outstrips the local capital available to commercialise it," Chris Nave, Brandon Capital's co-founder and managing partner, told Capital Brief. "In the past, we have had to move companies offshore as they enter late-stage clinical trials to secure the capital required to fund these activities, which is often in excess of $100 million."
