Asset-based finance (ABF) has gained momentum as a critical funding tool for technology-driven businesses by offering an alternative pathway to growth at a time when traditional lending and venture capital markets face increasing pressure.
According to insights highlighted by the World Economic Forum(WEF), asset-based finance is evolving beyond its traditional role in sectors such as real estate and equipment financing to support emerging technology ecosystems, digital infrastructure and innovative business models.
The shift reflects growing demand for financing structures that are tied to the value of underlying assets rather than company equity alone.
Technology companies often struggle to secure conventional financing because many of their assets are intangible, including intellectual property, software platforms and data.
However, Asset-based finance is helping bridge this gap by creating new ways to unlock capital from these assets, enabling firms to scale operations without excessive dilution of ownership.
The World Economic Forum argues that scaling
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