Mckinsey venture capital. Rick Tetzeli is the editorial director of McKinsey Quarterly and an executive editor in McKinsey’s New York office. Investor Paul McInerney sheds light on the evolving environment for entrepreneurs. Private markets deal volume plummeted, performance declined, and valuations fell—sharply in certain sectors. Welcome to McKinsey’s Global Private Markets Report 2025 Conditions for global private markets were decidedly mixed in 2024. Jan 17, 2025 · Now Leap has launched a gen AI platform, including a suite of copilots, tools, and workflows, which combines proprietary client and McKinsey data to help our teams enhance and accelerate the process of building compelling business ventures, from the initial flash of inspiration to a fully functioning entity. Jul 12, 2023 · The global capital intake for venture capitalist (VC) firms has decreased significantly, dropping $200 billion from 2021 to 2022, with an additional decline of $50 billion expected in 2023. Oct 10, 2024 · The McKinsey Health Institute (MHI) has joined the African Venture Philanthropy Alliance (AVPA), Clinton Global Initiative, Kokoro, and Wellcome to form the Coalition for Mental Health Investment (CMHI) with the bold vision that within a generation, investment in mental health will match the scale of global need. How does your approach differ from other venture capital firms’? The key difference between us and typical venture capital firms is that we go earlier than pretty much any other investor. One avenue is “impact investing,” directing capital to enterprises that generate social or environmental benefits—in projects from affordable housing to sustainable timberland and eye-care clinics—that traditional Mar 13, 2023 · McKinsey_Website_Accessibility@mckinsey. 1 That’s more than 40 times the amount they invested in 2010. Stefan Albrecht. Some biotechs are also exploring a nascent form of funding: special-purpose acquisition companies (SPACs). com For the past five years, results from McKinsey Global Surveys on corpo-rate venture building—also known as “new-business building,” which was the term used in the survey—have created the only data set of its kind. 6 billion in 2020, and the amount of capital raised during IPOs in 2020 ($28. McKinsey New Ventures is a corporate venture capital firm of McKinsey & Company based in New York, New York. Dealmaking remained tepid, for instance, while fundraising across all asset classes fell to its lowest level since 2016, even as the performance of public markets increased. visualcapitalist. Nevertheless, given the growth potential of CGT and the promise it holds for patients, most large biopharmacos are considering increasing their presence in the market. Mar 19, 2024 · McKinsey’s John Levene spoke to Anthony Chow, cofounder of Agronomics, a London-listed venture capital firm focusing on cellular agriculture, about investor interest in emerging agtech and how companies are navigating the ongoing funding challenges. See full list on mckinsey. Within the agtech sector, 1 Includes developing companies in core agricultural sectors, such as precision-spraying technologies and next-generation seeds, as well as those spanning adjacent industries, such as chemicals (sustainable May 5, 2022 · Insurtechs are the driving force of this evolution, 2 and investors are taking note. Sep 2, 2023 · Alice Zheng always knew she wanted to be a doctor. China includes Hong Kong, the People’s Republic of China, and Taiwan. Our world is at an inflection point, with technology and data exponentially transforming our clients, our Mar 15, 2023 · Venture capital (VC) and VC-orientated private equity (PE) firms: This group raised 2,090 rounds of funding, totaling $72 billion. Oct 30, 2023 · For example, venture capital experienced a significant decline from a four-year CAGR of 12 percent in insurtech deals to a 21 percent decline in 2022. Mar 19, 2024 · Founded in 2000, venture capital (VC) firm Emerald Technology Ventures was among the first VCs to recognize the potential of sustainability investing, well before the terms “ESG” and “green investments” became mainstream. Ingo Beyer von Morgenstern and Dr. We feature conversations with start-up founders and leaders, investors, and industry experts about the current and future state of technological disruption as well as the professional and personal challenges entrepreneurs face in scaling their companies. Aug 22, 2021 · In recent years, start-ups and venture capital have seen a boom—indeed, recent reporting suggests 2021 may be on track to double last year’s record levels of start-up financing in the US and triple 2020’s venture funding in Europe. Feb 28, 2018 · Impact investing directs capital to enterprises that generate social or environmental benefits. A number of factors are driving this sharp pullback by investors, including high interest rates (which curb venture In the latest McKinsey Global Private Markets Review for 2023 we explore some of the biggest changes over the past year and look ahead at what might come next. 3. Ben leads alliances and partnerships for QuantumBlack, AI by McKinsey, and spends much of his time working with private equity (PE) firms and their portfolio companies. Over the last years, LatAm startups underwent their first significant venture capital boom An innovation environment never seen before and an abundance of capital flow in the region We create alpha for private equity investors across the deal life cycle, ranging from preinvestment diligence through postinvestment management. Dec 10, 2024 · The venture capital firm also played an active role in the acquisition of financial management and banking platform Brass by the Stripe-owned payment gateway Paystack. Evaluate your portfolio’s performance against relevant venture capital and private equity-backed start-ups. She also worked for McKinsey before becoming a VC at RH Capital and investing in women's health startups. In contrast, venture capital (VC) fundraising declined by nearly 60 percent, equaling its lowest total since 2015, and deal volume fell by 36 percent t the lowest level since 2019. The ACATIS QILIN Marco Polo Asien Fonds is their second fund, launched in 2019. By focusing on three essentials—incubating new ideas, tapping into the parent company’s strengths, and smartly managing the portfolio—companies can launch and scale ventures faster and with more resilience. Nov 7, 2023 · This week, I was encouraged by a couple of readers to look into McKinsey's "Inside the Strategy Room" podcast. Even with restrictions in capital availability and higher interest rates, there is a greater awareness of, and commitment to, venture building. com This inflow of capital has rapidly increased valuations (Exhibit 4). Banks began to pull back, unwilling or unable to lend. Stay ahead of innovation and engage start-ups on the most critical strategic imperatives. Nov 10, 2022 · Over the past decade, countless start-ups have benefited from a venture capital (VC) market that has seen steady growth in dollars invested and deals completed. Venture capital (VC) investment has grown faster than the more mature private-equity or public-markets funding. One option for financial institutions strug-gling to bring innovative ideas to market is to take on an investor role. This has brought the sector’s underlying profitability and long-term business model sustainability into sharp focus—to a point where we believe the path to profitable scale for many fintechs has been structurally altered. Operationalize concepts and enable rapid growth through comprehensive implementation services. Yet capital deployment increased by double digits across asset classes, as managers adapted to Explore the top venture capital trends in 2025 and discover how investors and startups are adapting to a fast-changing funding landscape. Jun 8, 2025 · The private markets landscape in 2025 is marked by resilience, innovation, and adaptation. 1 Despite the overall shrinking market, impact investments have proven resilient, thanks to growing consumer demand for sustainable products and services. Despite this accelerated activity Our History: Qilin Capital was founded in 2014 by Dr. Since then, funding for logistics startups almost doubled in 2021 compared to 2020, but also shifted to different logistics subsectors. May 28, 2020 · Startup and venture capital funding for logistics fell from $3. Sep 22, 2022 · How relevant and useful is this article for you? About the author (s) Steve Case is the CEO of the venture capital firm Revolution, the cofounder of AOL, and the former chairman of AOL Time Warner. Feb 12, 2025 · Public and private investment dollars are fueling the race to modernize defense capabilities. Titled "Three essentials of successful corporate venture capital," this podcast Apr 1, 2025 · The outlays include capital expenditure into climate tech–driven growth, R&D spending, equity investments, venture capital (VC) stakes, shifts in core portfolios toward climate technology, and spin-offs of climate tech-focused businesses (see sidebar, “Our methodology”). Sep 9, 2020 · Venture capital funding has slowed, business model vulnerabilities are being exposed, and competitive dynamics are shifting. Nov 14, 2022 · These developments have helped the edtech sector boom; venture capitalists (VCs) invested $20. We break down the journeys of legendary venture builders—how they did it, the challenges they faced, and how they built successful and competitive businesses. McKinsey Webcasts Thank you for your interest in our exclusive McKinsey webcast on " Driving innovation with corporate venture capital " with Matt Banholzer, Sid Ramtri, David Horowitz, and Kindra Tatarsky McKinsey partners with leaders on strategy, innovating to net zero, leading with tech, and building capabilities for a sustainable, inclusive, growing future. Asia Expertise: Each member of our team has lived and worked in Asia for the majority of their careers. Using our proven playbook, we can help turn your next corporate venture into outsized growth. This is an intuitive pattern, now backed up by data. With the fraying contract between society and business an urgent priority, many companies and banks are eager to find investments that generate business and social returns. With increased funding for VC and companies remaining private for longer, the investable universe of growth companies has expanded substantially. Venture capital (VC) bucked the broader trend with strong growth, driven by outsize interest in tech and healthcare. Our analysis shows that investment into European defense tech start-ups has increased by over 500 percent in the 2021 to 2024 period compared to the preceding three years. Aug 10, 2016 · What do venture-capital firms look for when they back entrepreneurs? With billions of dollars flowing into start-ups around the world, that question has never been more important, nor the answer more consequential. May 12, 2025 · Read our latest research, articles, and reports on Private Capital on the changes that matter most for the challenges and opportunities ahead. Ratio of average annual private-market investment over the past five years and the most recent year's GDP. Our findings challenge the myth that this kind of “social” investment yields weak returns that take too long to realize. Blockchain start-ups, for example, are attracting a significant amount of venture capital with radically new infrastructures for payments and other sectors. The pandemic has had an enormous financial impact on many sectors, but biotech has weathered the storm: after a brief downturn early in the Mar 18, 2025 · A new wave of techno-optimist patriotism and rising geopolitical tensions are driving more venture capital investing to defense tech startups. Oct 11, 2024 · To demystify that journey, a group of venture capitalists, with help from McKinsey, studied the trajectories of 3,000 climate tech start-ups and conducted more than 100 interviews with a diverse range of stakeholders. Dec 12, 2023 · Public funding for biotech remains tenuous, but in 2022 and 2023 venture capitalists have continued to pour money into innovative platforms that could revolutionize the sector. elements. Jun 12, 2023 · The founding partner of a Southeast Asian venture capital fund explains his company’s ambitions to create economic opportunity and reduce carbon emissions. The 2024 Forbes Midas List has arrived, spotlighting the top investors shaping the venture capital sector. Jun 15, 2022 · The share of investments in quantum coming from venture-capital and other private-capital entities increased in the second half of 2021 and now account for more than 70 percent of investments (up from 50 percent in September 2021), suggesting growing confidence that the technology will provide returns. com Jun 14, 2022 · McKinsey on Start-ups is an original podcast series from Fuel, McKinsey's start-up and venture capital practice. Mar 28, 2024 · According to McKinsey Global Private Markets Review 2024, private markets have entered a slower era, with conditions impact fundraising, deals and performance. — In PE, fundraising growth of successor funds strongly correlates with performance of the preceding fund at the time of fundraising launch. To qualify, investors were judged on their portfolio companies that either went public or were acquired for at least $200 Jun 24, 2025 · McKinsey research reveals the secrets of long-term investors and how they can continue to generate superior performance. Jun 29, 2021 · Global venture-capital funding and deals reached their highest ever level of $36. Nov 16, 2022 · Private-venture funds Venture capital (VC) investments in the space sector have grown substantially over the past decade as investors have come to appreciate the long-term commercial potential of the industry. Dec 17, 2018 · Customer adoption of truly innovative business models takes time, and smaller-scale attackers may require heavy infrastructure investments over a long period before revenues start coming in. Nov 2, 2023 · We explore why companies should consider corporate venture capital to boost innovation, how they should approach it, and what they can expect from it. The India Venture Capital Association (IVCA) team, including Arvind Mathur, Akriti Bamniyal and Angad Dugal opened access to several private sources of information that proved critical to several aspects of the research. Jun 23, 2025 · Explore the latest advancements in quantum computing, sensing, and communication with our comprehensive Quantum Technology Monitor 2025. Software insurtechs gain traction. 5 billion in the first quarter of 2019 to $700 million in the first quarter of 2020 as the coronavirus spread worldwide. The many active VC investors in the space sector include Andreessen Horowitz, Founders Fund, and Lux Capital. We invest our human capital—our capabilities, databases, people, and tools—in promising biotech companies to help them scale and achieve high ambitions, using our proven Leap by McKinsey methodology. The demand has also created new opportunities for Jun 6, 2022 · As a result, funding for logistics startups increased dramatically. May 20, 2025 · In McKinsey’s latest annual Global Private Markets Report we look at some of the biggest trends shaping private equity in 2025 and beyond. The number of venture capital (VC) investors is growing, too, highlighting the expansion of the ecosystem. Still, private markets outperformed public markets on the way down, whether due to truly more resilient portfolios, a lag in timing, or manager discretion over their marks (private markets tend to To confront this pressing challenge, the World Economic Forum and McKinsey & Company (McKinsey) have jointly launched the Fuelling Innovation: Closing Fintech Funding Gaps initiative. In each episode, our experts cut through the noise to empower corporate entrepreneurs in designing, building, and scaling new companies. Travel companies: These are frequently in-house incubators or joint ventures that provide potential businesses with direct support. Among these models, corporate venture capital has the longest history. Jun 10, 2022 · The past three years have seen a boom in venture capital (VC) funding in the biotechnology sector. Apr 30, 2021 · In an effort to understand worldwide biotech financing in the context of the COVID-19 crisis, McKinsey analyzed the sector’s financial performance and interviewed 20 C-level executives from small and midsize biotechs and venture-capital (VC) firms. 8 billion in the edtech sector globally in 2021. We look at how it can enhance investment returns and improve risk management. 8 billion) (Exhibit 1). Explore past years’ reports. The mood changed in early summer. Oct 11, 2020 · In recent years, Europe’s start-up ecosystem has seen a surge in the number of unicorns and the pace at which they are created. Two leading venture capitalists talk about how investing in them is changing. Jun 26, 2024 · Private-capital firms saw the opportunity and began acquiring legacy books of business from insurers. We call it "day zero investing. This article explores these recent Nov 10, 2022 · promoting more diversity at the venture capital (VC) level to infuse greater diversity among founder sets (for example, Fundright, a group of Dutch VCs, aims to have a 35 percent female management team by 2023) This could lead to an additional 115 to 170 start-ups in the Netherlands founded per year by 2030, our analysis shows. 6 billion in 2021, venture funding for logistics start-ups fell to just $2. Our research shows that VC companies invested in 2,200 biotech start-ups worldwide in 2016; by 2021, that number had grown to 3,100. Oct 1, 2024 · European policy makers could also boost private capital investment through higher private equity and venture capital allocations by pension funds and insurers. “ New venture building isn’t easy: our analysis shows only about 20 percent of new Jun 26, 2017 · In this interview, Hone Capital managing partner Veronica Wu describes how her team uses a data-analytics model to make better investment decisions in early-stage start-ups. May 14, 2021 · The boom that tech start-ups have been experiencing has continued through the pandemic. Oct 27, 2025 · Here, based on our latest analyses from McKinsey’s Quantum Technology Monitor, we outline the current investment landscape, advise on best practices for investors looking to capitalize on the sector’s momentum, and assess future opportunities. In an interview with McKinsey’s Gisa Springer and Harry Forbes, Emerald’s founder and current managing partner, Gina Domanig, offers insights into Emerald’s Nov 2, 2023 · Corporate venture capital can accelerate internal innovation efforts, but it entails many risks. Jul 24, 2024 · The decline in postpandemic logistics funding continues. Buyout notched its highest fund-raising year ever in 2023, and its performance improved, with funds posting a (still paltry) 5 percent net internal rate of return through September 30. Here’s how it can take the lead. 1 After reaching an unprecedented $25. The two co-founders were former directors at McKinsey Oct 8, 2024 · I recommend that corporations first invest in startups, which is the perfect way to assess their compatibility before deciding whether to pursue a merger or acquisition. 1 We also found that biotech companies raised more than $34 billion globally in 2021, more than doubling the 2020 total of $16 billion. Feb 4, 2025 · The Venture is an original podcast series hosted by serial business builders from Leap by McKinsey. Feb 12, 2025 · A significant increase in funding. VC funds returned –3 percent through September, posting negative returns f r seven consecutive quarters. Sep 4, 2024 · A new World Economic Forum and McKinsey report outlines five pathways to close the venture capital funding gap and enable innovation in the fintech sector. 1 These include Germany’s neobank N26, France’s healthcare scheduling service Doctolib, and Lithuania’s online used-clothing marketplace Vinted. While public valuations have recently cooled, private companies are still raising capital at double-digit revenue multiples. Between 2013 and 2019, there was 32 percent year-on-year growth in corporate venture capital (CVC) investments, and three-quarters of Fortune 100 companies have active venture units. McKinsey Webcasts Thank you for your interest in our exclusive McKinsey webcast on " Driving innovation with corporate venture capital " with Matt Banholzer, Sid Ramtri, David Horowitz, and Kindra Tatarsky Align with clients to ensure there are shared objectives and key performance indicators. " We start before there is even a company. PE firms have moved to fill the space, and the supply Tell us a bit about Antler's approach to investing in startups. In the biotech sector, VC Oct 7, 2021 · Long viewed as a relative laggard, Japan’s start-up ecosystem is beginning to come into its own. (This could require consolidation of these funds and regulation changes to allow the shifting of fund allocations. They launched their first China fund in 2015. ) Leapfrog in semiconductors. In this episode of the Inside the Strategy Room podcast, the authors of the recent article “ How to make investments in start-ups pay off ” discuss why companies should consider corporate venture capital (CVC) as a way to boost innovation, how they should approach it, and what they can expect Nov 2, 2023 · They span measures to improve human capital, increase the availability of critical financial capital, and boost the technological backbone of the ecosystem while laying the foundation for successful entrepreneurship. McKinsey New Ventures (part of McKinsey & Company) | 91,102 followers on LinkedIn. VC was the fastest-gro Jan 21, 2025 · AI technology has immense value potential for institutional investors. The investment landscape Dec 12, 2024 · The McKinsey Global Institute looks back at some of the biggest stories of 2024 as told through our favorite charts and data visualizations. Venture capital (VC) continued to attract capital on the back of a decade of strong performance but was outpaced by growth equity. Venture capital includes seed/R&D, start-up/early-stage, and small and medium enterprises (SMEs). McKinsey ’s Global Private Markets Report 2025, titled “Braced for Shifting Weather,” provides a comprehensive analysis of how private equity, real estate, private debt, and infrastructure are navigating macroeconomic uncertainties, geopolitical risks, and technological advancements. But scaling technologies from AI to quantum computing takes more than money—it requires building a Modernized Defense Frontier. Apr 8, 2020 · Venture-capital firms are more comfortable than established biopharmacos with such risks. Logistics startups are thus focusing on securing liquidity and cash flows from operations, since growth funding has temporarily dried up. . In this discussion, they get beyond the hype surrounding generative AI LPs increased their exposure to earlier-stage private investing. These elements are a core part of a recipe for creating real value and navigating inevitable market Jun 23, 2023 · More access to funding for underrepresented—and underestimated—start-up founders can unlock massive opportunities. Of the 99 venture-capital-backed European unicorns, 14 were added in 2019 alone. May 3, 2023 · We look at key investment trends that are accelerating growth in construction technology and explore how businesses and investors can build new opportunities. Clearly, there is a huge appetite, although the pandemic slightly depressed collaboration activity. 9 billion in 2023—a two-year plunge of nearly 90 percent, and the lowest level of funding since 2015. Silicon Valley venture-capital powerhouse Draper Fisher Jurvetson has backed almost two dozen unicorns— start-ups valued at more than $1 billion —including Box, Skype, Tumblr Mar 24, 2022 · Updated annually, our Global Private Markets Review offers the best of our research and insight into private equity, real estate, debt, infrastructure, and natural resources. The research tracks venture-building activity and priority globally. Apr 14, 2021 · Outsiders continue to outspend incumbents. d-most-active year on record. This is the moment to put business building at the heart of your growth strategy. Feb 1, 2010 · By applying different venture-like models, companies can get more information about available external opportunities and gain a preferred position for partnering or acquiring the most attractive assets. Through this report, we examine where fintech funding gaps exist across regions and outline strategies to bridge these gaps, aiming to help build a more robust fintech ecosystem. Oct 27, 2023 · Staircase Ventures' Janet Bannister describes how technology has continually disrupted business and why a VC mindset is needed to succeed in today's market. By conducting research on global May 31, 2022 · Aatif Awan is the founder and managing partner of Indus Valley Capital, a Pakistan-focused venture fund he launched in his native country after working as a tech executive in Silicon Valley for several years. Abdur-Rahim Syed is a McKinsey partner based in Dubai who co-leads the firm’s start-up work in the region. McKinsey’s report in May 2020, Startup funding in logistics: New money for an old industry?, examined funding trends in the transport and logistics sector. The median valuation-to-revenue multiple of climate-oriented equity transactions in private markets increased from about three in 2019 to about nine in 2022 for private equity deals and from about ten to about 22 for venture capital Private equity strategies diverged. 7 billion) was more than twice the amount raised in 2019 ($11. We know that one of the top three priorities for companies is rewiring how they work, and corporate venture building is an integral part of May 10, 2021 · We have seen a steady increase in corporate–start-up engagements. Our analysis reveals that nonincumbents have made over 90 percent of investments in future-mobility companies since 2010, with 65 percent coming from venture-capital and private-equity (VC/PE) companies and 28 percent from tech players (Exhibit 2). McKinsey In works hand-in-hand with founders and their startups to achieve sustainable, inclusive growth — without charging any fees or taking equity—across three main themes. This isn’t seen just with classical tech companies; this focus is spreading to many other companies as well. Buyout and venture capital, the two largest PE sub-asset classes, charted wildly different courses over the past 18 months. May 27, 2025 · These three cases highlight how a venture factory enables serial business building. Sep 26, 2022 · Bill Gurley is a general partner at venture capital firm Benchmark. This year, Forbes recognized eight alumni whose strategic investments have not only advanced their firms but also helped grow the next generation of tech giants. Mental health challenges comprise about 15 percent of the total disease burden Aug 1, 2024 · In this episode of Deal Volume, McKinsey’s podcast on private markets, McKinsey partner and host Brian Vickery speaks with senior partner Ben Ellencweig. Since then, worldwide, private-capital firms have completed more than $900 billion 2 in transactions acquiring life and annuity liabilities. Raju Narisetti, the leader of McKinsey Global Publishing, is based in McKinsey’s New York office. Oct 22, 2024 · For the past five years, results from McKinsey Global Surveys on corporate venture building—also known as “new-business building,” which was the term used in the survey—have created the only data set of its kind. Our content spans all Apr 1, 2025 · Private capital can become the engine transforming Europe’s business landscape—if it invests at least €100 billion more every year. Investing venture capital in new payments technologies, busi-ness models and adjacent players – while not without its challenges – is a way to make an end-run around typical obstacles and enter the innovation flow quickly. bodn 7b4m t8 fi3mc v5zj0 bfb nii shxp q2cs t6nzou