Corporate Venturing in Latin America Shows Faster Profitability Than Global Average, McKinsey Says

Latin America is emerging as one of the most dynamic regions in corporate venturing, with new businesses reaching profitability faster than anywhere else in the world, according to a new McKinsey & Company report.

The study, titled "The Way to Win in Corporate Venturing: Serial Building and AI," finds that 76% of new corporate-backed ventures in the region become profitable in under two years, compared with a global average of 61%.

McKinsey attributes the strong performance to what it calls "serial builders" — companies that repeatedly create and scale new businesses rather than treating innovation as a one-off initiative. The report concludes that firms in Latin America "have developed a greater institutional muscle for building" thanks to a combination of operational urgency, market fragmentation, and the region's rapid adoption of digital tools.

The report also notes that 67% of new ventures in Latin America already generate more than $10 million in annual revenue, outpacing the global figure of 61%. However, this speed comes with higher upfront investment.

McKinsey says Latin American ventures require an average of $113 million to reach profitability, 46% higher than the global average of $77 million. The firm writes that this reflects "the capital intensity needed to scale in markets with complex logistics and competitive pressures."

While the study focuses primarily on global trends, analysts note that Latin America's performance stands out because it challenges long-held assumptions about the region's risk environment and capital constraints. McKinsey writes that corporate venturing has become a "critical engine of growth" in the region, and that its trajectory suggests continued acceleration as companies systematize their innovation processes.

The findings arrive amid growing interest from multinational firms exploring partnerships or market expansion opportunities in the region. The report concludes that companies hoping to compete in fast-moving sectors "will need to build ventures repeatedly, not occasionally," underscoring a shift toward continuous innovation as a core strategic capability rather than a side initiative.

Elsewhere, the study reveals how Artificial intelligence is emerging as a central driver, as companies that integrate AI early in the business-building process see "substantially higher" returns and faster iteration cycles. The report argues that winning corporate venturers globally will be those that "combine serial-building discipline with targeted AI adoption," a formula it says Latin American companies are beginning to adopt at scale.