McKinsey is bringing a suite of AI tools to its venture building unit Leap

McKinsey’s venture building unit, Leap, has integrated generative AI tools to enhance and accelerate new business creation, having already established over 700 ventures since 2018.

The foundation of venture building: Leap’s analysis reveals that only 20% of new businesses launched in the past decade have evolved into viable large-scale enterprises, with 40% of failures attributed to poor product-market fit.

• Traditional venture building combines creative inspiration, problem-solving, market expertise, and extensive iteration
• The process requires specialized skills and processes that many companies lack internally
• McKinsey’s Leap unit has successfully created 20 unicorns among its 700+ ventures

AI platform capabilities: McKinsey has developed a comprehensive generative AI platform that includes copilots, tools, and workflows to streamline the venture building process.

• The platform leverages proprietary client and McKinsey data to enhance decision-making
• AI tools assist in creating app prototypes, developing investment cases, and testing customer responses
• The system follows a three-part model: amplifying team skills, accessing vast information repositories, and enabling quick action on insights

Practical applications: The AI-powered venture copilots are delivering tangible benefits across multiple aspects of venture building.

• Product managers and designers use AI assistance to analyze opportunities and conduct customer research
• Automated workflows help create venture canvases, draft pitch decks, and develop testing materials
• The platform streamlines collaborative sessions, allowing teams to focus on critical decision-making

Client impact and validation: Organizations across various sectors report significant improvements in their venture building processes using Leap’s AI tools.

• A UK insurance company client noted improved focus and reduced contention in decision-making
• A US healthcare company achieved in hours what previously took weeks for venture concept creation
• A Central American NGO leader praised the system’s ability to align ideas with organizational strengths

Market adoption trends: The integration of AI in venture building is gaining traction across the innovation ecosystem.

• Innovation labs are implementing AI platforms to accelerate venture development
• Venture capital firms utilize AI to identify patterns and insights across their portfolios
• Organizations are finding competitive advantages through faster iteration and improved product-market fit

Looking beyond conventional metrics: While McKinsey’s AI venture building platform shows promising results, its long-term impact on venture success rates and the broader implications for entrepreneurship remain to be seen as the technology continues to evolve and mature.