How CEOs are turning corporate venture building into outsize growth

Investment Rating - The report indicates that corporate venture building is considered one of the top three strategic priorities by over half of surveyed CEOs, reflecting a positive investment outlook in the industry [2][6][10]. Core Insights - Companies that invest 20% or more of their growth capital into new ventures achieve revenue growth that is two percentage points higher than those that do not invest in new-venture building [5][14]. - The emergence of expert venture builders with mature capabilities is leading to higher organic growth rates and success rates compared to novice builders [5][33]. - There is a significant expectation for the development of generative AI-enabled ventures, with 60% of respondents indicating interest in pursuing such opportunities in the next five years [3][27]. Summary by Sections Survey Findings - The latest survey of over 1,100 business leaders shows that companies prioritizing venture building are primarily driven by growth objectives [3][8]. - A notable 60% of respondents are eager to pursue generative AI-enabled ventures in the next five years, indicating a shift towards technology-driven growth [3][27]. Capital Constraints - Limited capital availability is cited as the primary constraint for companies that have decreased their prioritization of venture building [8][9]. - Despite capital constraints, the interest in venture building remains resilient, with predictions of increased activity as monetary conditions ease [2][6]. Future Expectations - Approximately two-thirds of surveyed CEOs expect to develop new ventures in the coming year, surpassing expectations for other strategic moves like M&A and organizational transformations [10][11]. - The report highlights that companies with mature venture-building capabilities are more likely to see their new ventures meet or exceed growth expectations [34][36]. Investment Strategies - Companies that achieve a revenue share of 24% from new ventures in five years typically invest 2.4 times more than those that do not meet this target [18][19]. - The report emphasizes the importance of a disciplined portfolio approach and dedicated funding for successful venture building [41][42]. Industry Trends - There is a growing expectation for new ventures focused on data, analytics, and AI platforms across various industries, with significant interest in sustainability-focused ventures as well [23][26]. - The healthcare and technology sectors show the highest interest in developing generative AI-enabled ventures, particularly in enhancing operational efficiencies and customer interactions [27][29].