Turkey: Crowdfundıng

Last Updated: 23 April 2018
Article by Yeliz Esmersoy

Crowdfunding was pioneered by Marillion, the British rockband and conduced towards a great thing twenty years ago. The group mailed almost 10.000 fans and asked whether they would fancy buying an album one year prior its release and surprisingly the answer was "yes". That was ahead of time, as there was minimal access to the internet, however worked well, and made Marillion meet its fans. That was the rising of crowdfunding model which has been implemented by many others thereafter, including KickStarter.

Crowdfunding is basically a form of financing promising businesses, projects or ventures by involvement of many with a little bit of money. Today, just contrary to the mainstream business financing, crowdfunding works as a facility to approach as many investors as one can through the internet, rather than wishing for massive funds from a few key investors.

There are mainly four types of crowdfunding which are; donation based, debt based, equity based and reward based crowdfunding, where latter is the most common type in the world of investment. Donation based crowdfunding, as the name implies, includes campaigns in which there is no return to the contributor. In other words the contributors simply donate to support the idea without expecting any return, out of the goodness of their hearts. These work like charities. Debt based crowdfunding mechanism includes campaigns where contributors lend money and expect to be paid back at certain time intervals with a set interest rate. In equity based crowdfunding, the contributors invest money and expect return on their investment by receiving a share of the profit in the form of a dividend, distribution etc. Equity based crowdfunding is very famous in some countries and includes campaigns that are being used commonly by entrepreneurs and start-ups seeking an alternative to traditional venture capital and angel investors looking for a capital infusion to take their business to another level. Reward based crowdfunding includes campaigns in which contributors lend money and expect to receive different types of rewards like albums, t-shirts and gig tickets that correspond to the amount of money they contribute. This type of crowdfunding used to work well for consumer goods or other tangible products.

Different types of crowdfunding, especially the reward based mechanism, has also been carried out through different platforms in Turkey, where such fund-raising was not regulated with laws. However with the Law Amending Certain Tax Laws and Other Certain Laws No. 7061 ("Omnibus Law") published in the Official Gazette on 05.12.2017, crowdfunding has been placed in Turkish legislation. The provisions regarding the crowdfunding mechanism has entered into force on the same day the Omnibus Law published. According to the amendments made under the Capital Markets Law No. 6362 ("the Law"), crowdfunding is defined as a fund-raising mechanism for a start-up or a project by means of crowdfunding platforms within the scope of the rules to be determined by the Capital Markets Board. Although crowdfunding has come into existence with the amendments in the Capital Markets Law, neither different types nor any details have been put under the scope of the Law so that secondary legislation is expected to clarify a bit more.

The Omnibus Law aims to keep the crowdfunding platforms in a free market whereas establishing some protection mechanisms. According to the Omnibus Law, crowdfunding platforms serves in electronic environment and works as an intermediary for crowdfunding. In other words, crowdfunding platforms bring the project owner and investor or contributor together and support fund-raise from individuals. Crowdfunding platforms are required to obtain permission from Capital Markets Board to be established and to carry on serving in electronic environment.

Although crowdfunding evokes public companies based on similarities, the Law exempts crowdfunding from the rules applicable to the publicly held companies. Furthermore, crowdfunding is held exempted from duties such as preparing a prospectus or export document under the Law. 

Capital Markets Board is authorised to take any precaution such as requesting remedy for the unlawful acts and operations of crowdfunding platforms within a reasonable time period, limitation or cancellation of acts and operations and etc. If any fund-raising activities conducted without permission the Capital Markets Board appeals to the Information Technologies and Communications Authority ("ITCA") and so ITCA is authorised to block access to such website.

Crowdfunding provides a revolutionary tool for boosting economy as it may avoid failure of valuable businesses or projects just because the lack of financial support. It enables to approach thousands of investors, and thus to improve promising businesses, projects or ventures with the help of cumulative effort, therefore worth embracing. Turkey has made a major stride in the market with the recent regulation as it paved the way for implementing crowdfunding in its business environment lawfully, however; secondary legislation is reqisite either to stronger regulatory approach to crowdfunding or to properly make use of it.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Sign Up
Gain free access to lawyers expertise from more than 250 countries.
Email Address
Company Name
Confirm Password
Mondaq Newsalert
Select Topics
Select Regions
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions