Bankers Hate This One Trick: How Intangibles Are Breaking the Rules of Finance

Why Traditional Lending Doesn’t Work in the Age of Ideas (And What’s Replacing It)

Walk into a bank with a revolutionary idea, a killer app, or a globally recognized brand, and you might be surprised by how little interest you get. That’s because banks are still wired for the old world—where value could be locked in a vault or repossessed if a loan went bad. In the intangible economy, the most valuable assets can’t be seized or sold. Capitalism without Capital explains why this is a growing problem—and what’s being done about it.

Traditional finance struggles with intangibles because they make poor collateral. If your startup fails, a bank can’t auction off your software or brand. This has led to the rise of alternative funding: venture capital, angel investors, and public grants. These new players are willing to take on more risk—and they understand the unique dynamics of intangible-heavy businesses. But the shift isn’t just about who provides the money; it’s about how we value, measure, and support innovation in a world where the old rules no longer apply.

For entrepreneurs, this means seeking out investors who get intangibles—and learning how to pitch the value of things you can’t touch. For policy makers, it means updating laws, accounting standards, and support systems to reflect the new reality. The future of finance is being written now, and those who understand intangibles will have the edge. 1 3