What is equity crowdfunding and how does it work in Türkiye?
Types of crowdfunding, how equity campaigns work under the Capital Markets Board rules in Türkiye, pros and cons, and how to prepare a campaign.
By Editorial Team
Crowdfunding means raising the money a startup or project needs in small amounts from many people. In Türkiye, equity crowdfunding has become a regulated way for early-stage startups to reach a wide base of investors.
Types of crowdfunding
- Donation or reward-based: backers receive a product, gift or thanks; no shares are issued.
- Equity-based: investors become shareholders in the startup.
- Debt-based: the startup repays the money raised on agreed terms.
This guide focuses on the equity model.
Regulation in Türkiye
Equity crowdfunding in Türkiye is regulated by the Capital Markets Board (SPK). Campaigns can only run on crowdfunding platforms licensed by the SPK. Platforms assess the startups that list and must inform investors about the risks. The rules also set limits on how much non-qualified investors may invest. Rules are updated from time to time, so check the current SPK and platform requirements before applying.
How it works
- Choosing a platform and applying: the startup applies with its business plan and financials.
- Assessment: the platform reviews the team, product, market and financial statements.
- Campaign preparation: funding need, valuation, stake offered and use of funds are set; a video and documents are prepared.
- Campaign period: the campaign is live for a set time and investors commit through the platform.
- Outcome: if the target is reached, the money goes to the startup and shares go to investors. If not, the money is returned to investors.
Advantages
- Access to a broad investor base
- A strong marketing and brand awareness effect during the campaign
- Turning loyal users into shareholders and building a community
- Validation of market demand
Things to consider
- Many shareholders: hundreds of small shareholders can complicate later rounds. Ask platforms how they represent them in a single structure.
- Disclosure: your business plan and financials are shared with a wide audience.
- Preparation effort: documents, valuation and campaign communication take real work.
- Reporting: you must keep investors informed after the campaign.
Preparation tips
- Build a community before launch; investment in the first days sets the campaign's momentum.
- Set a realistic valuation; our valuation guide can help.
- Show the use of funds line by line.
- Present your metrics clearly and consistently; see the metrics investors look at.
- Finalise equity and vesting between founders first; see our founders' agreement guide.
Conclusion
Equity crowdfunding is an option alongside angels, grants and venture capital, and is especially powerful for consumer-facing startups that can build a community. For other funding routes, see our grants and support programmes guide.
This guide is for general information only and is not legal, financial or investment advice. Check official sources and consult professionals for current terms.
