The state Liberals have referred the Victorian government’s $2 billion venture capital fund to the auditor-general, warning it is run by “Labor mates”, has been “shrouded in secrecy” and resulted in start-ups shedding jobs.

Long-time political observers compared the saga to the former Labor government’s Victorian Economic Development Corporation, a venture-capital fund that became the final nail in the coffin of the Cain-Kirner governments after it racked up estimated losses of $110 million.