CROWDFUNDING: A NEW FUNDING METHOD FOR TURKISH FINANCIAL MARKET

Abstract

The aim of this study is to investigate the crowdfunding as a new rapidly expanding method of raising a fund at financial markets. The extraordinary improvements in the internet technologies and the increasing use of social media led to this fast expanding in crowdfunding. In this method, entrepreneurs use the web as a platform for securing fund from investors. Crowdfunding platforms are intermediary organizations which bring the fund demanders and suppliers together in the virtual environment. According to some point of view, crowdfunding represents a revolution in finance because of the ways it will transform the financial sector. Some others agree that it is only a new financial balloon. Due to the lack of financing the most business ideas which will be very successful in the future fail at the start-up level in Turkey. Therefore crowdfunding seems to emerge as a good way of overcoming these financial challenges.