Invest in Progress

Affirm’s buy now, pay later service offers shoppers a transparent alternative to credit cards. It tells consumers up-front what monthly charge they face, promises no late fees or hidden charges – and in many cases offers a zero percent interest rate. Co-founder and chief executive Max Levchin reveals how the business originated in his own “painful” experiences with credit cards, and how AI-powered shopping agents could supercharge its future.Background:Scottish Mortgage first invested in Affirm in 2019, when it was still a private company.Today, the listed business provides credit to millions of customers across the US, Canada and the UK when they make online and offline purchases, and it has its sights set on further expansion and taking a greater share of business away from the incumbents in the credit card industry.“No one loves thinking about money because it’s a drag, it’s complicated,” Levchin tells investment manager Tom Slater in this interview. “It doesn’t have to be this way. And we’ve proven that for our little niche, big as it is… we can alleviate the burden.”In this podcast, the two discuss how Levchin came to build Affirm after his prior success at PayPal, the technology that underpins the company’s ability to tailor loans to each customer and purchase, why merchants are keen to cover the cost of zero percent credit from a third party, and how AI-powered shopping agents could impact the firm. Timecodes:00:03 Coming up…00:48 Introduction02:25 Max Levchin interview begins02:51 A transparent alternative to credit cards04:05 A threatened amputation08:52 Lessons from PayPal11:44 Returning to the world of fintech14:28 A terrible credit card experience18:15 Attracting early investors22:14 How Affirm works25:48 The appeal to merchants28:36 Focusing on the Affirm Card31:23 Underwriting data provides a ‘powerful moat’35:41 Why permit credit for luxury purchases?39:25 Listening to your gut42:20 How big could Affirm get?45:39 AI agentic shopping48:54 What the world looks like if Affirm fulfils its mission50:38 Claire Shaw and Tom Slater on the investment case57:35 Podcast lookaheadGlossary (in order of mention):Point-of-sale lending: Credit offered at the moment a customer buys something, either online or in a shop.Network effects: The effect where a product or service becomes more valuable as more people or businesses use it.Fintech: Technology-driven financial services, such as digital payments, lending or banking tools.Charge-off: When a lender writes off a debt as unlikely to be repaid, usually damaging the borrower’s credit record.Delinquent/delinquency: A loan or credit account becomes delinquent when the borrower is late making required payments.IPO: Initial public offering: the process by which a private company lists its shares on a public stock market.Accrued interest: Interest that has built up over time on a loan or balance.CMO: Chief marketing officer, the executive responsible for a company’s marketing strategy.Competitive moat: A durable advantage that makes it hard for competitors to copy or overtake a business.Cash flow: The movement of money into and out of a person’s or company’s accounts.Total addressable market: The total revenue opportunity available if a company could reach all possible customers for its product.Operating expense: Day-to-day business spending, such as salaries, rent or marketing.AI agent: An AI system that can carry out tasks or make decisions on a user’s behalf.Net promoter score: A customer loyalty measure based on how likely users are to recommend a company or product.Flywheel: A business dynamic where one improvement drives another, creating self-reinforcing growth.Check the podcast description to ensure this content is suitable for you. Your capital is at risk. Presenter: Claire ShawExecutive Producer: Leo KelionLine producer: Jessica RooneyBroadcast Technician: Samual O’Hare Editor: Jody Black Hosted on Acast. See acast.com/privacy for more information.

The biotech company Enveda has developed a new approach to explore and ‘decode’ nature’s chemistry. Its goal is to discover molecules that could underpin a new generation of blockbuster drugs. In this podcast, the firm’s founder and chief executive, Viswa Colluru, explains how Enveda could become a trillion-dollar business, and Scottish Mortgage Investment Trust manager Tom Slater considers the risks and opportunities the company faces. Background:Scottish Mortgage first invested in Enveda in November 2024. The US-headquartered company uses a proprietary artificial intelligence (AI) large language model to discover and develop new medicines from natural sources. At the time of writing, it has a pipeline of 12 drug candidates in various stages of development that could form the basis of new therapies to treat dermatitis, obesity, inflammation and chronic pain. Enveda’s founder, Viswa Colluru, has reimagined the drug discovery process from first principles based on his insight that natural molecular compounds should have a better safety profile than engineered ones.“Healthcare is the biggest industry in the world, and if you can increase the odds of success in drug discovery, there are so many unmet needs that its opportunity is effectively unbounded,” says Scottish Mortgage manager, Tom Slater. Timecodes:00:03    Coming up…00:50    Introduction02:49    Viswa Colluru interview begins03:08    “Things that work in the lab [often] don’t work in people”04:35    A mission grounded in a family death08:50    Invested life savings11:24    Picking up from where evolution left off15:16    Using AI to make sense of nature21:32    A chemistry-first approach25:16    Historic points of failure27:32    Reimagining drug discovery from first principles29:19    Splitting work between US and India32:19    A growing drug candidate pipeline35:07    Partnering with Microsoft and Sanofi38:19    The relationship with Recursion Pharmaceuticals41:02    “Incredible people looking in unexpected places”43:00    A globally loved pharma company43:38    Tom Slater on the investment case52:42    Podcast lookaheadPlease see our glossary of terms. Check the podcast description to ensure this content is suitable for you. Your capital is at risk. Presenter: Claire ShawExecutive Producer: Leo KelionLine producer: Jessica RooneyBroadcast Technician: Samual O’Hare Editors: Kerry Ingram Hosted on Acast. See acast.com/privacy for more information.

How the co-founder of a Latin American challenger bank plans to transform the future of finance. Join us for the latest episode of Invest in Progress, featuring David Vélez, co-founder and CEO of Nubank – the largest challenger outside China. Vélez shares with Lawrence Burns how he's revolutionising banking across Latin America and saving users tens of billions in the process.Episode Highlights:Breaking the Banking Monopoly: When five banks controlled Brazil's financial sector, making services expensive and inaccessible, Vélez spotted an opportunity to disrupt the status quo with simplified processes and reduced costs.Unlikely Disruptor: Despite having no retail banking experience, technology background, or Portuguese language skills, Vélez envisioned a technology-driven banking transformation focused on consumer needs and digital-first solutions.Economic Impact: Nubank has returned approximately $20 billion to customers – money that would have otherwise gone to traditional banks as fees – demonstrating their commitment to affordability and customer value.Scale and Reach: Now serving over 114 million customers across Brazil, Colombia, and Mexico, Nubank has grown into the largest challenger bank outside China by delivering a seamless digital banking experience.Customer Love: With one of the highest Net Promoter Scores worldwide, Nubank's customer-centric approach has built extraordinary brand loyalty rarely seen in financial services.AI-Powered Future: Vélez discusses how AI integration could evolve banking from merely "having a bank in your pocket" to enjoying a personalised experience akin to having a banker in your pocket too.Worldwide Ambitions: With a methodical approach to global expansion, Nubank aims to become the world's largest retail bank by addressing inefficiencies in banking models worldwide. Check the podcast description to ensure this content is suitable for you. Your capital is at risk. Presenter: Claire ShawExecutive Producer: Niamh KiddLine producer: Jessica RooneyBroadcast Technician: Samual O’HareEditors: Rhona Taylor-Craig, An Phan Hosted on Acast. See acast.com/privacy for more information.

When Bitcoin has been declared dead more than 415 times in the past 14 years, how is it that crypto platform blockchain.com is still alive and well?Scottish Mortgage manager Tom Slater welcomes Peter Smith, Co-Founder and CEO of Blockchain.com onto the Invest in Progress podcast to explain. Founded in 2011, Blockchain.com is the world’s oldest, most trusted platform for transacting in cryptocurrencies for individuals and institutions. The company now has 37 million users worldwide with approximately a third of all bitcoin network transactions going through its platform.However the crypto landscape has been undeniably volatile over the last decade. So how has the company emerged stronger now than ever before?Peter Smith's vision of providing financial freedom and choice to all, his dedication to being the most trusted platform in this space, and maintain a long-term view, certainly have something to do with it. Add a more supportive environment under Trump’s administration, and the outlook looks pretty exciting.Check the podcast description to ensure this content is suitable for you. Your capital is at risk. Presenter: Claire ShawExecutive Producer: Niamh KiddLine producer: Jessica RooneyBroadcast Technician: Samuel O’HareEditors: Rhona Taylor-Craig, An Phan Hosted on Acast. See acast.com/privacy for more information.

In this bonus episode of Invest in Progress, hear from the company revolutionising global money movement.With international payments a profitable afterthought for the banks, it’s been left to a newcomer to build the best way of moving money around the world. Meet Wise.Wise's chief executive and co-founder, Kristo Käärmann, and Scottish Mortgage deputy manager Lawrence Burns, discuss the fintech's remarkable rise, which offers low-cost, faster cross-border transactions for millions.Check the podcast description to ensure this content is suitable for you. Your capital is at risk. Credits:Presenter: Claire ShawProduction manager: Niamh KiddProduction team: Baillie Gifford Hosted on Acast. See acast.com/privacy for more information.

Pioneering a potential trillion-dollar industry, Climeworks removes CO2 from the air and stores it underground.In the latest episode of Scottish Mortgage’s Invest in Progress podcast, Climeworks co-founder Christoph Gebald explains the role the company hopes to play in mitigating those emissions that cannot be reduced by other means.Climeworks’ dedication to its mission, its innovative direct air capture technology, and its commitment to scaling carbon removal make it a key player in the fight against climate change. As the first company to establish commercial-scale operational plants, its Iceland plant is the only one with third-party verification of its carbon removal capabilities.Scottish Mortgage invests in Climeworks as an early pioneer in an industry addressing a global issue – climate change – where the company could become a significant presence over time. Within 25 years, direct air capture facilities could be as commonplace as wind or solar farms are today, and the industry an equivalent size to today’s oil and gas industry.Although still early in its journey, if the company succeeds in scaling, it has the potential to create a multi-billion-dollar revenue stream.If you're interested in using Climeworks’ service as an individual, visit: https://climeworks.com/subscriptionsCheck the podcast description to ensure this content is suitable for you. Your capital is at risk.Credits:Presenter: Claire ShawAudio production agency: ListenProducer: Shannon DelwicheExecutive producer: Suzy GrantProduction manager: Rachel KayEditorial lead: Malcolm Borthwick Hosted on Acast. See acast.com/privacy for more information.

Joby Aviation’s Paul Sciarra on why we’re closer to the Jetson future of flying cars than people might think.The latest episode of the Scottish Mortgage podcast Invest in Progress features Joby Aviation. Its electric vertical take-off and landing (eVOTL) aircrafts are well-placed to revolutionise how people travel in modern cities.These aircrafts have features resembling an SUV, take off and land like a helicopter, but fly like a traditional aircraft. The fully electric vehicles deliver quiet, fast and green aerial transportation for trips anywhere between zero and 100 miles. And the end goal is to commercialise the aircraft as an “aerial taxi service” in busy city centres. In other words, to become the Uber of the skies.In developing this mode of transport, Joby have harnessed the opportunity to address congestion, decrease operating costs, limit the carbon footprint and reduce the noise of aircraft.Scottish Mortgage's investment reflects its recognition of Joby’s potential to disrupt the transportation industry. The company’s innovative technology, strategic partnerships and safety commitment position it for long-term success.Join investment manager Tom Slater as he welcomes Joby’s Executive Chairman Paul Sciarra onto the podcast, and learn more about the future of urban transport.Check the podcast description to ensure this content is suitable for you. Your capital is at risk.Credits:Presenter: Claire Shaw Audio production agency: Listen Producer: Shannon Delwiche Executive producer: Suzy Grant Production manager: Niamh Kidd Editorial lead: Malcolm Borthwick Hosted on Acast. See acast.com/privacy for more information.

Trucks transport almost every object, yet the industry has many pain points. Aurora’s CEO Chris Urmson talks solutions.In the US alone, 80 per cent of freight is transported by trucks. Without them and their drivers, the world would literally grind to a halt. But trucking is not for the faint-hearted. It’s a dangerous and strenuous job, leading to significant driver shortages. Meanwhile, demand for the movement of goods is only increasing.Chris Urmson, co-founder and CEO of autonomous trucking company Aurora, sits down with Scottish Mortgage manager Tom Slater to discuss how his company can solve the problem – by enabling trucks to drive themselves. Chris explains how installing autonomous software into trucks will make the industry safer and more efficient, and how the application of autonomous technology can transform transportation at large.Chris started his journey at Carnegie Mellon, moved on to Google’s self-driving vehicle project Waymo, and then co-founded Aurora with brilliant minds from Uber and Tesla. Hear how he has built the company from the ground up, formed partnerships with some big names, and what’s next on the road to autonomous trucks.Check the podcast description to ensure this content is suitable for you. Your capital is at risk. Presenter: Claire ShawAudio production agency: ListenProducer: Shannon Delwiche Executive producer: Suzy GrantProduction manager: Niamh KiddEditorial lead: Malcolm Borthwick Hosted on Acast. See acast.com/privacy for more information.

All six episodes of the first season of Invest in Progress are available now!What lies behind the world’s most innovative and exceptional companies?The Scottish Mortgage team invites you behind the scenes to hear the extraordinary conversations that take place when business leaders and entrepreneurs meet Scottish Mortgage managers Tom Slater and Lawrence Burns.In season one, from ecommerce to Alzheimer’s treatments, drone delivery to cultivated meat, discover the real secrets behind building a great company, as well as what makes these businesses potentially great cases for investment.Check the podcast description to ensure this content is suitable for you. Your capital is at risk.Invest in Progress is a Listen production for Scottish Mortgage.Credits:Presenter: Claire ShawAudio production agency: ListenProducer: Phil SansomExecutive producer: Suzy GrantProduction manager: Niamh KiddEditorial lead: Malcolm BorthwickFor more information on Scottish Mortgage and the companies in its portfolio visit scottishmortgage.com where you can sign up to receive regular emails about recent articles, events, portfolio activity, and more. Hosted on Acast. See acast.com/privacy for more information.

We speak to Recursion Pharmaceuticals about its use of artificial intelligence, data science, and robotics to create medicinal drugs more efficiently than before and at a lower cost.In this episode, Recursion’s co-founder and CEO Chris Gibson tells Scottish Mortgage’s manager Tom Slater how the firm uses cutting-edge technologies to create novel insights about biology and chemistry that can lead to potential treatments. They discuss why Recursion’s methods mean it can target rare diseases, which might not make financial sense for more traditional drug companies to explore. In addition, they discuss the importance of company culture and taking time to onboard new recruits.Recursion Pharmaceuticals was founded 10 years ago. It performs millions of experiments every week using high-precision robotics. Researchers then analyse the results using machine learning techniques to home in on promising drug candidates.The company already has five drugs in clinical trials. One of these is a potential treatment for cerebral cavernous malformations, which are abnormally shaped brain or spinal cord blood vessels. These can cause seizures and problems with balance and walking. As its technology improves over time, Recursion hopes to tackle a broader range of diseases, potentially improving millions of people’s lives.Check the podcast description to ensure this content is suitable for you. Your capital is at risk.Read more:Recursion provides business updates and reports fourth quarter and fiscal year 2022 financial resultsCredits:Presenter: Claire ShawAudio production agency: ListenProducer: Phil SansomExecutive producer: Suzy GrantProduction manager: Niamh KiddEditorial lead: Malcolm Borthwick Hosted on Acast. See acast.com/privacy for more information.

We speak to Denali Therapeutics about overcoming the challenge of the blood-brain barrier to treat devastating neurodegenerative diseases.In this episode, Denali’s founder Ryan Watts tells Scottish Mortgage’s manager Tom Slater why he thinks his company can succeed where big pharma has failed to develop effective treatments for neurological disorders. The two discuss why the biotech company is not only targeting Alzheimer’s but Parkinson’s and the motor neurone disease amyotrophic lateral sclerosis (ALS), among other conditions. In addition, they cover the importance of giving the firm’s staff a strong sense of mission and the need to be prepared for failures along the way.Denali is tackling one of the greatest medical challenges of our time. Every day in the UK, 600 people develop dementia, and roughly one in 14 people over the age of 65 currently live with its effects. Alzheimer’s is the most common form of the condition, and no cure or treatment currently slows it down.Denali’s development of a technology that effectively sneaks large molecules through the biological shield protecting our brains from toxins addresses a factor that has frustrated previous efforts to design viable drugs. It has already developed a promising treatment for Hunter Syndrome, a condition in which the body doesn’t break down sugar molecules causing damage to the brain, and it has candidate drugs for several other diseases in its pipeline.Check the podcast description to ensure this content is suitable for you. Your capital is at risk.Read more:Denali Therapeutics announces key anticipated 2023 milestones for its therapeutic portfolio for neurodegeneration and lysosomal storage diseasesCredits:Presenter: Claire ShawAudio production agency: ListenProducer: Phil SansomExecutive producer: Suzy GrantProduction manager: Niamh KiddEditorial lead: Malcolm Borthwick Hosted on Acast. See acast.com/privacy for more information.

We talk to Zipline about building the world logistics system of the future.In this episode, Zipline's founder Keller Rinaudo Cliffton talks to Scottish Mortgage's manager Tom Slater. They discuss the benefits of working in Africa; how a mission can give a company its competitive edge; and their vision for approximating teleportation with instant delivery.Founded in 2014, Zipline’s first contract was with the government of Rwanda to deliver blood to its hospitals. Since then it’s expanded to Ghana, Japan, Nigeria, and the US, and moved beyond medical supplies to everyday shopping and groceries. While they’ve received attention for their innovative, clean-energy drones, it’s also their software infrastructure, organisational competency, and inspiring vision that has enabled their extraordinary growth.Check the podcast description to ensure this content is suitable for you. Your capital is at risk.Read more:Effect of unmanned aerial vehicle (drone) delivery on blood product delivery time and wastage in Rwanda: a retrospective, cross-sectional study and time series analysisLeapfrogging for Last-mile Delivery in Health CareCredits:Presenter: Claire ShawAudio production agency: ListenProducer: Phil SansomExecutive producer: Suzy GrantProduction manager: Niamh KiddEditorial lead: Malcolm Borthwick Hosted on Acast. See acast.com/privacy for more information.