Evaluating only Leap by McKinsey’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. Documented cause: Governance failure.
Key Events Timeline
FOUNDING
McKinsey launches Leap venture-building unit to co-create startups embedded with client organizations.
PRODUCT LAUNCH
First Leap ventures announced across financial services and healthcare; client co-investment model piloted.
PIVOT
Multiple Leap-built ventures fail to close Series A funding due to McKinsey IP ownership conflicts.
SHUTDOWN
Leap unit quietly reorganized; McKinsey refocuses on traditional implementation consulting model.
Full Analysis
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Documented cause
McKinsey launched Leap as an internal venture-building unit in 2019, designed to co-build startups alongside clients using McKinsey consultants as founding operators. The model was structurally conflicted: McKinsey earned consulting fees advising the same companies it competed with, its best talent preferred partnership track over startup equity, and client-built ventures struggled to raise external funding with McKinsey's IP ownership terms. The unit was quietly reorganized by 2022.
Lesson
“Advisory firms cannot simultaneously be investors, operators, and consultants — incentive conflicts are fatal.”