Funding the new frontier
Aishwarya Dahanukar, co-founder and chief commercial officer of Tangible, outlines why new funding solutions are needed more than ever at this pivotal moment in time.
As a society, we are at a crucial moment of technological innovation with several exciting megatrends converging to change how we work and live. The artificial intelligence revolution is transforming how we use technology on a daily basis and potentially driving efficiency in countless sectors. Deglobalisation is redrawing international relationships and increasingly depriving economies of immigration labour. And threats to energy security have heightened the need for nations to ensure they have sustainable, independent power solutions for their growing populations.
This has all created a phenomenal funding demand. Beyond the usual refinancing cliff – as loans written during the low-rate environment near maturity – the bulk of tomorrow’s assets and infrastructure need to be created from scratch. We don’t have an existing stock of this equipment, which means this all needs to be financed for the first time. For instance it’s estimated that artificial intelligence, and related hardware, will demand investment of $500bn (£371.4bn) in 2026 alone.
Responding to new needs
In order to fund all these new assets, credit investors will need to show the same excitement for these emerging asset classes as they did for lending fintechs early on. Which ultimately contributed to the maturing of that asset class over the last decade and its current status as relatively less ‘novel’ with tighter relative yields. This makes the window of opportunity to now fund these assets of the future even more exciting especially from a relative value perspective.
Concurrently, the recent rise of private credit and the use of asset-backed financing as a funding tool are also providing major tailwinds for the launch of Tangible.
Introducing Tangible
Tangible is the platform designed to be the debt capital stack co-pilot for ambitious hard-tech companies.
We’ve partnered with trusted and established credit lenders as we aim to be the bridge for hard tech borrowers to access the unfamiliar world of debt raising. Tangible furnishes this journey with expert resources and education throughout. Tangible’s mission is to connect them with the right partners they need for their future financing needs.
While there is no way to guarantee that a borrower can raise funding from the market, Tangible has been created to provide as much support as possible when building a winning debt strategy and to co-create all the right materials to present to lenders in formats that speak their language.
Tangible is the result of a carefully curated founding team. I bring experience from my career in capital markets; my fellow co-founder Will Godfrey has a background in hardware/VC and Sebastian Abdy Saboune has a long career of building software products, including financial ones.
The hard asset super cycle is already here and Tangible is ready to support the new investment journeys of today and tomorrow.
Sponsored content created in partnership with Tangible Finance.
