Author(s): Gözde UÇAR / Language(s): Turkish
Issue: 1/2020
Aim: Entrepreneurs go first to create the necessary capital to realize their creative ideas and projects. However, creating capital can be challenging for projects at the idea stage. At this point, alternative financing methods such as venture capital and angel capital come to the fore. Angel capital, which is a newer method compared to venture capital, is a method supported by the Ministry of Treasury and Finance in our country since 2013. These two methods are very close in content and are often confused. However, there are some distinctions as well as similarities between these financing methods. The purpose of this study is to examine these financing methods in terms of concept and operation. Also, what method is used more by entrepreneurs in the world and Turkey, or making assessments in terms of accessibility, it is to reveal the differences and similarities of the methods. Method: In this study, secondary data, regulations and related literature were used as a method. In addition, there are included of entrepreneurs and business examples who can benefit from these financing methods, which have been successful in the World. Findings: The two methods differ in subjects such as the size and source of the fund used in investments, the subject of investment, the roles undertaken after the investment, the instruments of investment, the stage of investment. In addition, in the light of the numerical and secondary data reached, it was determined that the most used financing method by entrepreneurs in the process is venture capital. Result: Venture capital method is more known than angel financing due to its deeprooted history. Therefore, entrepreneurs should be informed especially about angel capital method and brought together with existing and potential investors. However, some tax advantages and legal regulations are made in our country regarding venture capitalists compared to angel investors. In order to support angel investors, public institutions have duties to provide incentives and prepare the necessary environment.
More...