Angel capital as an alternative finance menthod in entrepreneurship and accounting process

Angel Capital method is a financing method, in which the initiatives that arise with new and creative ideas with high growth potential are supported by the angel investors in terms of their experience and savings along with financing support. Having been existed in the United States for a long time, the angel capital method, which has recently turned to technology-oriented venture companies with the rapid rise in technology, has become more organized and coordinated thanks to angel networks and angel groups. It has been observed that angel investors, who invest in certain ventures at the start-up or early stages, usually withdraw from the ventures when the company reaches a certain size. In Turkey, with a different definition, legal regulations were made on the Angel Capital under the name of Regulation on Individual Participation Capital. In accordance with this regulation, adopted in early 2013, incentives were provided to Individual Participation investors (Angel Investors) in the form of tax advantages. Considering the investments made by individual participation investors in initiatives, tax incentives offered to them, and the limitations imposed by the applicable regulation indicate that some points should be considered in terms of accounting of these transactions. In this study, issues such as the functioning structure of angel capital, investments made and withdrawing from investment were evaluated within the scope of Turkish Financial Reporting Standards (TFRS) and Turkish Accounting Standards (TAS), and certain recommendations were made concerning the implementation of accounting.