EQUITY BASED CROWDFUNDING ESCROW AGENT SERVICE
Equity Based Crowdfunding Escrow Agent Service
Capital Markets Board "Communique on Equity Based Crowdfunding -III-35 / A.1 (Communique)" dated October 3, 2019, sets forth the rules and procedures for equity based crowdfunding, crowdfunding platforms inclusion to the Board list and their activities, raising funds from public through crowdfunding and the control and supervision of the utilization of the raised funds in accordance with the declared purpose. Within the scope of subparagraph ( c ) of the first paragraph of Article 4 of the Communique ensured the funds collected through crowdfunding platforms will be blocked, in an account opened at escrow agent until it is transferred to the venture capital company or it is returned to the investor's account and also Takasbank has been also deemed among the institutions described as “Escrow Agent”.
In accordance with the provisions of the communique, funds collected in the name of venture capital company / entrepreneurs will be blocked under the account that is opened on behalf of crowdfunding platforms during the fundraising campaign; raised funds will be transferred to the entrepreneurs / venture capital company after the successful completion of the campaign process and distribution of the shares issued by the entrepreneurs/venture capital company to the investors’ account. If the campaign process is unsuccessful, the raised funds will be returned to the relevant investors’ accounts.