CROWDFUNDING AS AN INNOVATIVE TRANSFORMATION IN FINANCE: INSIGHTS, OPPORTUNITIES, AND RECOMMENDATIONS

Year 2023, , 130 - 140, 15.01.2024

Aşkim Nurdan Tümbek Tekeoğlu , Recep Ali Küçükçolak , Necla Ilter Kucukcolak

https://doi.org/10.17261/Pressacademia.2023.1879

Abstract

Purpose- The purpose of this article is to explore and analyze the transformative impact of crowdfunding, with a specific focus on the reward-based Fongogo crowdfunding platform in Turkey. The study aims to understand how crowdfunding disrupts traditional financing models, fosters collaboration and innovation, and contributes to financial inclusion for small businesses and startups. Additionally, the purpose involves comparing the project results of Fongogo with international examples to provide insights into Turkey's crowdfunding landscape.
Methodology- The study employs a case study approach, focusing on the reward-based crowdfunding platform Fongogo. Data is collected and analyzed from the Fongogo platform in Turkey to gain insights into supporter dynamics, project success, and regional influences. Comparative analysis is conducted by comparing Fongogo's results with international crowdfunding examples. Additionally, literature on crowdfunding is reviewed to identify key success factors, such as project presentation, category, funding type, location, and team size
Findings- The findings of the study reveal the diverse models and advantages of crowdfunding, emphasizing its transformative potential in the financial sector. Insights from Fongogo data shed light on supporter dynamics, the impact of project location, and the influence of technological literacy on crowdfunding success in Turkey. The comparative analysis with international examples provides a broader perspective on crowdfunding success factors, highlighting areas where Turkey's crowdfunding potential can be enhanced.
Conclusion- In conclusion, the study advocates for the strategic positioning of crowdfunding as a vital financial tool in Turkey. The findings underscore the importance of user-friendly platforms, transparent operations, and effective communication by project owners. The impact of the new Crowdfunding Regulation in Turkey is discussed, acknowledging the need for further assessment as its implementation progresses. The study encourages leveraging the lessons learned from successful projects, both locally and internationally, to guide new initiatives and strengthen Turkey's crowdfunding ecosystem. Ultimately, the article aims to contribute insights to researchers, policymakers, and practitioners interested in the dynamic landscape of crowdfunding in Turkey and beyond.

Keywords

Financial inclusion, reward-based crowdfunding, financial innovation, digital platforms

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