Challenges

Crowdfunding would provide the opportunity for eligible companies and projects to obtain funding from investors via crowdfunding platforms, without going public or being subject to capital market regulations.

As the product is in its initial stage, observations are still being made on its implementation. However, an important issue that should be considered is that the crowdfunding process should be easier, much more practical and less costly than an IPO process.

Primary target

Which group does your product/service primarily target?

Description of Innovation

Equity based crowdfunding was introduced into the Capital Markets Law (CML) in Türkiye with an amendment in 2017. The Communiqué II-35/A on Equity Based Crowdfunding, published in October 2019, established the legal framework for crowdfunding platforms, their operation and membership, management of crowdfunding campaigns, use of funds and, start-up companies. Crowdfunding provides the opportunity for eligible companies/projects to obtain funding from investors via crowdfunding platforms, without going public or being subject to capital market regulations.

With a further amendment to the CML enacted in February 2020, Capital Markets Board of Türkiye (CMB) was authorized to regulate debt based crowdfunding as a method of crowdfunding. On 27 October 2021 the new CMB Communiqué III-35/A.1 on Crowdfunding was published. The new Communiqué repeals the former one and incorporates both equity and debt based crowdfunding. Provisions of the Communiqué address situations arising in equity-based crowd funding, and includes regulation on the authorization of crowdfunding platforms, venture companies funded through crowdfunding, and conditions in relation to crowdfunding campaigns.

As of February 2022, 7 companies have been licensed as equity-based crowdfunding platforms. 22 campaigns have been funded and TL 35,865,225 of funding was raised via equity-based crowdfunding. technology projects constitute the majority of projects.
In order to provide an alternative source of financing for start-ups, equity-based and debt-based crowdfunding products are introduced. Crowdfunding would provide the opportunity for eligible companie

Results

As of February 2022, seven companies have been licensed as equity-based crowdfunding platforms. Through these platforms 22 campaigns have been funded and TL 35,865,225 of funding was raised via equity-based crowdfunding. Currently technology projects constitute the majority of projects funded through crowdfunding.