Why crowdfunding? Understanding crowdfunding and the marketing roots of this fundraising model in Turkey

Abstract

The widespread use of the Internet and Web 2.0 emergence have promoted crowdfunding worldwide. In particular, crowdfunding exhibits significant growth potential in developing countries. It also constitutes a novel investment and financing mode that overtakes funding institution capabilities by providing practical marketing tools. Despite its considerable progress reported in developed countries, the deployment of this multidisciplinary economic model remains limited and restricted in developing countries. Turkey represents a promising emerging market for crowdfunding activities with its recent regulations. The potential of such an economic model is subject to further awareness of the crowd and investors (especially entrepreneurs) of crowdfunding concepts. This paper provides a narrative review where the authors aim to survey, synthesize, and discuss crowdfunding as a marketing tool and its relevant principles. Specifically, it depicts the bases and objectives of crowdfunding activities. Moreover, it introduces the marketing foundations relevant to this funding model to motivate the use of crowdfunding in developing countries such as Turkey.