• Cliff Equity
  • Posts
  • 📈 Yonder Bags £23.4M, Takes Off with Travel Perks

📈 Yonder Bags £23.4M, Takes Off with Travel Perks

£182m Boost: Isomorphic's Drug Discovery Shake-Up

September 19, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Yonder Bags £23.4M, Takes Off with Travel Perks

  • £182m Boost: Isomorphic's Drug Discovery Shake-Up

  • £200M Investment: Oaktree's CBAM Takeover

The summary: Yonder’s £23.4m boost is setting it up to become the ultimate rewards card for Millennials and Gen Z, with travel perks and a sleek app that’s poised to revolutionise how they spend, save, and explore the world.

The details:

  • Yonder, the credit card startup, has pocketed a cool £23.4m to bolster its rewards scheme, with a keen eye on Millennials and Gen Z.

  • The funds will be used to expand travel perks, add a city exploration feature, and make a few key hires—because who doesn't love a good jaunt abroad?

  • The launch of "Flights and Stays" lets users burn points on plane tickets and hotel stays, aiming to make Yonder the ultimate travel companion app.

  • With a valuation now tipping over £100m, Yonder's investors are clearly banking on it being the next big fintech darling for the younger generation.

Why it matters: Yonder is cleverly swooping in where traditional credit cards have largely ignored Millennials and Gen Z, offering rewards that actually match their love for travel and city life. With a hefty £23.4m investment, it’s gearing up to become the Swiss Army knife of finance apps—whether you’re jetting off to Lisbon or just booking a cheeky dinner. Its £100m valuation suggests investors believe this fintech might just revolutionise how the younger crowd spends and saves.

The summary: With £182m in new funding, major deals with Eli Lilly and Novartis, and a mission to halve drug discovery timelines using cutting-edge AI, Isomorphic Labs is poised to shake up the pharmaceutical world faster than you can say "AlphaFold 3"!

The details:

  • Isomorphic Labs secures a hefty £182m: DeepMind’s AI drug discovery spinout, Isomorphic Labs, has raised £182m through new shares—an impressive 65% increase in price since their last offering. Clearly, they’re in rude financial health!

  • Big pharma deals galore: With partnerships worth up to $2.9bn with industry titans Eli Lilly and Novartis, Isomorphic isn’t playing small. It’s cashing in on the promise of faster drug discovery.

  • Slashing discovery timelines: CEO Demis Hassabis aims to halve drug discovery timelines from five years to two—because who has time to wait?

  • AI revolution in biotech: Powered by AlphaFold 3, Isomorphic’s platform could upend the pharmaceutical world. Speedier drug development means huge savings and perhaps a few lives saved along the way.

Why it matters: Isomorphic Labs’ AI-powered leap in drug discovery could mean getting life-saving treatments to patients faster, and with pharmaceutical giants like Eli Lilly and Novartis on board, the stakes (and the profits) are sky-high. Slashing years off the discovery process isn’t just about efficiency—it's about who gets to cash in first on the next medical breakthrough. And with £182m freshly raised, Isomorphic is clearly not here to faff about.

The summary: Close Brothers is cashing out on its wealth management arm, giving CBAM a fresh start under Oaktree’s watchful eye, while both parties gear up for a promising new chapter in the UK financial scene.

The details:

  • Oaktree Capital will acquire Close Brothers Asset Management (CBAM) for up to £200 million, with the deal set to complete in early 2025, pending regulatory approval.

  • The payment includes £172 million upfront, consisting of £146 million in cash and a £26 million dividend, with an additional £28 million contingent on future performance in the form of preference shares.

  • Post-sale, CBAM will operate independently, rebrand, and set up shop in a new HQ, with Oaktree backing the current management team to turbocharge its growth plans.

  • Close Brothers aims to refocus on its core lending business, while Oaktree sees CBAM as a prized asset, eager to boost its service and technology capabilities for a scaled-up UK wealth management future.

Why it matters: Close Brothers is ditching its wealth management arm to sharpen its focus on lending, leaving CBAM free to chase grander ambitions under Oaktree’s wing. With a hefty cash infusion and the promise of independence, CBAM is poised to strut its stuff in the UK wealth management scene. For Oaktree, it’s a chance to nurture a prized asset while flexing their financial muscles—think of it as a power play with dividends.