In addition to various methods, angel investing is becoming increasingly important in meeting the financing needs of entrepreneurs. In addition to the support provided by banks, financing institutions and close circles, angel investors play an important role in this process by providing financial and moral support even at the idea stage. However, the adequacy and effectiveness of tax incentives for angel investing in Turkey stands out as an important factor affecting the growth of the sector. In this study, the current situation will be analyzed and recommendations will be made to overcome possible deficiencies.

When compared to other financing models such as venture capital and venture capital, the angel investor concept stands out with its unique characteristics. Angel investors, referred to as “Individual Participation Investors” within the framework of legal regulations in Turkey, not only provide financial support, but also contribute to the development of entrepreneurs with their experience and know-how. Since 2012, regulations have aimed to popularize angel investing, but there is still room for improvement.

When the characteristics and investment processes of angel investors are analyzed, the qualities that a successful angel investor should possess come to the fore. Long-term perspective, strong human relations and risk-taking ability play a decisive role in angel investors’ decision-making processes. Moreover, investment decisions are influenced by both financial and non-financial factors. Understanding these factors can help entrepreneurs make informed decisions about which type of financing model to choose.

Finally, a comparison of angel investing and crowdfunding practices in Turkey is critical to better understand developments in the sector. While crowdfunding offers an alternative source of financing by facilitating access to new projects, angel investors help startups grow by providing more personalized support. This study aims to provide an important resource for comparing the tax incentives provided to angel investors with global practices and evaluating the developments in the sector.

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