State-owned venture capital fund Breakthrough Victoria has cut its workforce by almost 40 per cent in two years and its new boss says one focus of the leaner outfit will be to plug gaps in the private VC market, be it a retreat from deep tech or shortfalls as a result of higher taxes on big super balances.

Budget cuts this year resulted in a $90 million annual funding reduction for the John Brumby-chaired fund, with projections showing it will receive $1.68 billion over 15 years rather than $2 billion over a decade as was promised when it was launched in 2021.