Perspectives on Progress #13
Claire Shaw – Portfolio Director
- The dominance of SpaceX and Databricks in their respective industries is supported by latest valuations
- Meituan ramps up momentum in food delivery, drone services, and international expansion
- Leaps forward in healthcare with Insulet's latest product, and new buy Enveda's AI-driven drug discovery
As with any investment, your capital is at risk.
SpaceX
A Giant Leap for Humankind
SpaceX has achieved a remarkable valuation of $350bn in a new deal to buy employees’ shares, making it the world's most valuable private company.
The valuation comes hot off the heels of a number of significant milestones the company made during 2024, including a record-breaking number of launches. SpaceX successfully completed 134 trips to orbit, which accounted for more than half of all global launches and shows its dominance in the space industry.
Starship – the world's largest and most powerful launch vehicle ever developed – also made huge progress during 2024. The Starship spacecraft has now launched seven times, reaching major landmarks in its development including reaching space, demonstrating atmospheric re-entry and achieving controlled landings. In 2025, the company aims to launch 25 test flights, advancing the rocket's capabilities and moving closer to operational status for potential Mars missions.
SpaceX's satellite internet service Starlink also expanded rapidly during the past 12 months, with over 7,000 satellites now in orbit and five million users. Starlink is an important growth engine for the business given the steady income from the subscriptions, which offers a consistent cash flow to help fund ambitious developments such as Starship. Starlink is delivering on its mission to transform global connectivity by bridging the digital divide and bringing the internet to remote and underprivileged areas.
The latest valuation solidifies SpaceX's position as a worldwide leader in space exploration, satellite connectivity and modern rocketry, and has catapulted the company into one of the world's behemoths.
Databricks
Capitalising on AI
Scottish Mortgage was delighted to participate in the recent Databricks funding round, which valued the company at $62bn, putting it comfortably in the world's top 10 most valuable private companies. Databricks managed to raise $10bn – one of the largest funding rounds in history – in a "substantially oversubscribed" round that included Meta, which joined as a new strategic investor. Databricks plans to use the proceeds to build new AI products, make acquisitions to grow its international operations, as well as use some of the capital to provide liquidity for current and former employees.
Databricks is fast becoming the platform of choice for helping organisations modernise their data and AI infrastructure, with co-founder and chief executive Ali Ghodsi stating that "we are committed to helping companies, across every industry build data intelligence".
The momentum and underlying operational progress of the company continue to be phenomenal. Recent quarterly revenues growth of +60 per cent has enabled the company to cross the $3bn revenue run rate and is anticipated to be free cash flow positive early in 2025. Revenue run rate is a financial measure that projects a company's current revenue over a specific period (i.e: a week or month) into an annual figure.
Databricks is in the envious position of being able to capitalise on the momentum in AI and this recent funding round underscores the unprecedented appetite for Databricks shares and product.
Meituan
China's Delivery Powerhouse
The Chinese food delivery and local services giant Meituan was one of Scottish Mortgage’s best performing stocks during 2024 as the company made significant strides across various of its business units.
The economics in the food delivery business have been going from strength to strength – 100 million orders a day looks on track with the company having reached 90 million during peak times in 2024. We don’t think this is the end of the growth track given the momentum in lower-tier cities and the value-for-money products on the Pin Hao Fan platform are proving popular with frugal consumers amid China's slowing economy.
The company's international expansion gained momentum during 2024, with its KeeTa app becoming the market leader in Hong Kong's food delivery sector in just over a year, capturing a 43 per cent share by order volume. Its strategy in reaching volume leadership in Hong Kong will serve as a blueprint as it now targets Middle Eastern markets.
Meituan's drone delivery services also made the headlines. The fastest delivery of the year took place at the Badaling Great Wall in Beijing, where a cup of hot pear soup was delivered to a landing spot on the Great Wall in just 6 minutes and 37 seconds. This swift service showcases the efficiency and capability of Meituan drones in meeting the diverse needs of customers, even in challenging environments.
Overall, Meituan is transforming itself into one of China's most critical delivery infrastructure providers.
Enveda
Accessing Nature’s Chemistry
We have taken a small initial position in the private biotechnology company, Enveda Biosciences. The company uses AI and advanced analytics to decode the complex chemistry of nature, developing novel therapeutics for unmet medical needs from plants, microbes and other natural resources.
The idea is elegant in its simplicity: 50 per cent of drugs currently on the market originate from natural compounds, but less than 5 per cent of existing natural compounds have been explored for therapeutic purposes. Until recently, the natural world was prohibitively complex, but with AI, we have the tools to analyse it in a way that isn't cost-prohibitive.
Enveda is constructing a comprehensive chemical map of the natural world, systematically cataloguing relationships between chemical structures and biological functions to predict and design innovative treatments with enhanced precision and efficiency.
The company's platform rapidly expands access to nature's chemistry, finding therapeutics approximately four times faster than traditional methods. This approach has already yielded a deep and differentiated pipeline. The recent funding will help Enveda advance multiple candidates to clinical catalysts in the coming year, supporting its vision that nature's chemistry is an excellent source for new medicines.
Insulet
The System That Never Sleeps
Insulet specialises in innovative insulin delivery systems for diabetes patients. Its flagship product, the Omnipod, offers automatic insulin adjustments every five minutes, eliminating the need for daily injections, tubing and finger prick testing. The automated, round-the-clock care it provides its patients has earned it the description "the system that never sleeps."
Backed by a recent landmark trial, the latest iteration of the device, the Omnipod 5, is the first FDA-cleared automated insulin delivery system for both type 1 and type 2 diabetes.
Insulet's market leadership is secured by numerous patents and the engineering complexities of its devices. However, this latest development strengthens Insulet’s ability to penetrate markets with low pump usage, supported by pharmacy partnerships and direct-to-consumer marketing.
This exceptional progress, paired with international expansion plans in Australia, Belgium, Canada, Israel, and Switzerland over 2025, underscores Insulet's commitment to innovation and global growth, offering a promising outlook for the future.
Risk Factors
Unlisted investments such as private companies, in which the Trust has a significant investment, can increase risk. These assets may be more difficult to sell, so changes in their prices may be greater.
The trust invests in overseas securities. Changes in the rates of exchange may also cause
the value of your investment (and any income it may pay) to go down or up.
Annual Past Performance To 31 December each year (net%)
| 2020 | 2021 | 2022 | 2023 | 2024 | |
| Share Price |
110.5 |
10.5 |
-45.7 |
-12.5 |
18.8 |
| NAV |
106.5 |
13.2 |
-39.0 |
10.1 |
23.9 |
Source: Morningstar, total return, sterling.
Past performance is not a guide to future returns.
About the author - Claire Shaw
Portfolio Director
Claire Shaw is a portfolio director and plays a prominent role in servicing Scottish Mortgage’s UK shareholder base. Before joining in 2019, she spent over a decade as a fund manager with a focus on managing European equity portfolios for a global client base. With a background in analysing companies and communicating investment ideas, Claire is also responsible for creating engaging content that makes the Scottish Mortgage portfolio accessible to all its shareholders. Beyond that, she works closely with the managers, meeting with portfolio companies and conducting in-depth portfolio discussions with shareholders.
Regulatory Information
This content was produced and approved at the time stated and may not have been updated subsequently. It represents views held at the time of production and may not reflect current thinking. Read our Legal and regulatory information for further details.
A Key Information Document is available by visiting our Documents page. Any images used in this content are for illustrative purposes only.
This content does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.
Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed on the London Stock Exchange and are not authorised or regulated by the FCA.
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 (BGA) holds a Type 1 licence from the Securities and Futures Commission of Hong Kong to market and distribute Baillie Gifford’s range of collective investment schemes and closed-ended funds such as investment trusts to professional investors in Hong Kong.
Baillie Gifford Asia (Singapore) Private Limited (BGAS) is regulated by the Monetary Authority of Singapore as a holder of a capital markets services licence to conduct fund management activities for institutional investors and accredited investors in Singapore. BGA and BGAS are wholly owned subsidiaries of Baillie Gifford Overseas Limited, which is wholly owned by Baillie Gifford & Co.
Europe
Scottish Mortgage Investment Trust PLC (the “Company”) is an alternative investment fund for the purpose of Directive 2011/61/EU (the “AIFM Directive”). Baillie Gifford & Co Limited is the alternative investment fund manager (“AIFM”) of the Company and has been authorised for marketing to Professional Investors in this jurisdiction.
This content is made available by Baillie Gifford Investment Management (Europe) Limited (“BGE”), which has been engaged by the AIFM to carry out promotional activities relating to the Company. BGE is authorised by the Central Bank of Ireland as an AIFM under the AIFM Regulations and as a UCITS management company under the UCITS Regulation. BGE also has regulatory permissions to perform promotional, advisory and Individual Portfolio Management activities. BGE has passported its authorisations under the mechanisms set out in the AIFM Directive.
Belgium
The Company has not been and will not be registered with the Belgian Financial Services and Markets Authority (Autoriteit voor Financiële Diensten en Markten / Autorité des services et marchés financiers) (the FSMA) as a public foreign alternative collective investment scheme under Article 259 of the Belgian Law of 19 April 2014 on alternative collective investment institutions and their managers (the Law of 19 April 2014). The shares in the Company will be marketed in Belgium to professional investors within the meaning the Law of 19 April 2014 only. Any offering material relating to the offering has not been, and will not be, approved by the FSMA pursuant to the Belgian laws and regulations applicable to the public offering of securities. Accordingly, this offering as well as any documents and materials relating to the offering may not be advertised, offered or distributed in any other way, directly or indirectly, to any other person located and/or resident in Belgium other than to professional investors within the meaning the Law of 19 April 2014 and in circumstances which do not constitute an offer to the public pursuant to the Law of 19 April 2014. The shares offered by the Company shall not, whether directly or indirectly, be marketed, offered, sold, transferred or delivered in Belgium to any individual or legal entity other than to professional investors within the meaning the Law of 19 April 2014 or than to investors having a minimum investment of at least EUR 250,000 per investor.
Germany
The Trust has not offered or placed and will not offer or place or sell, directly or indirectly, units/shares to retail investors or semi-professional investors in Germany, i.e. investors which do not qualify as professional investors as defined in sec. 1 (19) no. 32 German Investment Code (Kapitalanlagegesetzbuch – KAGB) and has not distributed and will not distribute or cause to be distributed to such retail or semi-professional investor in Germany, this document or any other offering material relating to the units/shares of the Trust and that such offers, placements, sales and distributions have been and will be made in Germany only to professional investors within the meaning of sec. 1 (19) no. 32 German Investment Code (Kapitalanlagegesetzbuch – KAGB).
Luxembourg
Units/shares/interests of the Trust may only be offered or sold in the Grand Duchy of Luxembourg (Luxembourg) to professional investors within the meaning of Luxembourg act by the act of 12 July 2013 on alternative investment fund managers (the AIFM Act). This document does not constitute an offer, an invitation or a solicitation for any investment or subscription for the units/shares/interests of the Trust by retail investors in Luxembourg. Any person who is in possession of this document is hereby notified that no action has or will be taken that would allow a direct or indirect offering or placement of the units/shares/interests of the Trust to retail investors in Luxembourg.
Switzerland
The Trust has not been approved by the Swiss Financial Market Supervisory Authority (“FINMA”) for offering to non-qualified investors pursuant to Art. 120 para. 1 of the Swiss Federal Act on Collective Investment Schemes of 23 June 2006, as amended (“CISA”). Accordingly, the interests in the Trust may only be offered or advertised, and this document may only be made available, in Switzerland to qualified investors within the meaning of CISA. Investors in the Trust do not benefit from the specific investor protection provided by CISA and the supervision by the FINMA in connection with the approval for offering.
Singapore
This content has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this content and any other content or material in connection with the offer or sale, or invitation for subscription or purchase, of the Trust may not be circulated or distributed, nor may be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act 2001, as modified or amended from time to time (SFA)) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1), or any person pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.
Where the Trust is subscribed or purchased under Section 275 by a relevant person which is:
(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or
(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the securities pursuant to an offer made under Section 275 except:
(1) to an institutional investor or to a relevant person or to any person arising from an offer referred to in Section 275(1A) or Section 276(4)(c)(ii) of the SFA,
(2) where no consideration is or will be given for the transfer;
(3) where the transfer is by operation of law; or
(4) pursuant to Section 276(7) of the SFA or Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations 2018.
