The effect of motivation on investment decisions in crowdfunding methods

Recently, the concept of entrepreneurship has become important. One of the main obstacles that entrepreneurs face in realizing their ideas is finding financial support. An entrepreneur who cannot cover their own expenses may turn to family, close friends or public institutions for help and support. In an age where everyone is connected to the internet, crowdfunding has become a viable alternative to traditional funding sources. Crowdfunding ensures the widespread availability of funds to enable new ideas to emerge. The entrepreneur finds the right match by attracting the support of the masses through small donations. The internet is a means of raising funds and the internet has changed a lot of things. Crowdfunding is an additional example; the Internet is a tool for collaborative cooperation, which is part of our culture. Turkey currently allows crowdfunding, which is legal and widely accepted by the world population. Classical theories of finance take the view that individuals are always rational and make best decisions in the best interests of others. Since humans are social creatures, rational behavior is not possible for them. Investments would therefore not make sense.' Much research today has shown this assumption to be wrong. Market disruptions and economic crises are the main indicators that individuals do not always behave rationally. Due to the unpredictability of behavioral finance, these problems cannot be explained by classical finance theories. According to behavioral finance, people are social beings who are part of society and have a direct impact on their environment. According to behavioral finance, humans therefore cannot act rationally. Behavioral finance tries to explain why investors make irrational investments. Behavioral finance can predict the actions of individual investors and the patterns of investment understanding of the masses. Capital is currently one of the most important challenges in realizing new projects. It is difficult for investors to realize their projects when they do not have funds). The use of crowdfunding has recently become a hot topic of conversation, both as an alternative source of financing and as a source for those seeking capital to generate income. Crowdfunding is the process of financing innovative business ideas through online support. This replaces traditional sources of funding. The use of crowdfunding is widespread and supported by law in many countries. Our nation is currently exploring the creation of a legal framework.' So there is a belief that it will become widespread in our nation at some point. The emergence of behavioral finance has brought new perspectives to the field as classical finance theories have failed to explain economic crises and market irregularities. Behaviorism is the study of investors' tendencies and biases towards investments. The main objective is to clarify the factors that prevent the individual from acting rationally. Behavioral finance will be used to examine the impact of crowdfunding decisions.