# Arıkovanı (2016 – 2021)

- URL: https://girisimcikafasi.com/en/startup-graveyard/arikovani/
- Sector: Fintech
- Country: Turkey
- Total funding: unknown
- Cause of closure: Business model failed

## What did it do?

Arıkovanı (Turkish for “beehive”) was a reward-based crowdfunding platform launched in 2016 by Turkcell, Turkey's largest mobile operator, exclusively for technology and innovation-focused projects. Start-ups raised money from backers through 60-day campaigns, and for projects that missed their target the money was refunded to backers. In 2018 it also opened Arıkovanı Mağaza (Arıkovanı Store), where funded products could be sold.

## Why did it shut down?

In December 2021 Arıkovanı announced that it would end its services at the end of the month. The platform's statement attributed the decision to a desire to use its efforts more effectively and in more varied ways in line with new strategies. In other words, the closure was the result of a change in the parent company's priorities rather than a cash crisis. Having channelled 7.5 million TL to 73 start-ups over five years, the platform was a structure that stood on corporate support, and when that support was withdrawn it did not continue. It is also conceivable that the growth of equity crowdfunding platforms licensed by the SPK (Turkey's Capital Markets Board) in the same period narrowed the space for the reward-based model; this last point is an interpretation.

## The story

In 2016 Turkcell set up a crowdfunding platform called Arıkovanı so that technology entrepreneurs could find the resources they needed from the community. The platform was presented as Turkey's first reward-based crowdfunding site focused exclusively on technology start-ups. Start-ups opened 60-day campaigns, and backers made contributions in return for products or rewards. For projects that missed their target, the money raised was refunded to backers.

The first year was promising. According to figures Turkcell shared in February 2017, 18 start-ups had opened campaigns, 9 of them had reached their target, and 1.92 million TL had been raised from 11,000 backers. Standout projects included WeWALK, a smart cane developed for visually impaired people, and the Outliers smart notebook, which raised roughly eight times its target. According to a Webrazzi report from December 2018, the platform had received more than 6,000 applications, and campaigns for 66 projects had raised 4.6 million TL. That same year Arıkovanı Mağaza, where funded products could be sold, was launched. The Ape X drone, the Byqee electric bike conversion kit and the Onlock smart furniture lock were also among the start-ups that found backing on the platform.

On 24 December 2021 Arıkovanı announced that it would end its services at the end of the month. In total the platform had channelled 7.5 million TL in support to 73 start-ups. The statement said the platform was taking a break for a while so that its efforts could be used more effectively and in more varied ways in line with new strategies. Final settlements with active project owners were to be completed in December, and the site went offline shortly afterwards.

Arıkovanı's closure is explained by a shift in corporate priorities rather than by failure. Even so, the story is a reminder of an important truth: a platform that lives on a big company's budget remains dependent on the parent company's strategy when it cannot build its own revenue model. The decision, announced as a break for a while, proved permanent; at the time this entry was prepared, the platform's address was unreachable.

## Lessons

- A start-up living inside a corporation can be shut down the day the parent company's priorities change; build an independent revenue model.
- A crowdfunding campaign is a good market test for a product, but the platform itself has to make money too.
- Producing success stories does not mean you have a sustainable business model.

## Sources

- [Crowdfunding platform Arıkovanı announces it is ending its services](https://webrazzi.com/2021/12/24/kitlesel-fonlama-platformu-arikovani-hizmetlerini-sonlandirdigini-duyurdu/)
- [Crowdfunding platform Arıkovanı ceases operations](https://egirisim.com/2021/12/24/kitle-fonlama-platformu-arikovani-faaliyetlerini-sonlandirdi/)
- [Turkcell's platform Arıkovanı ends its services](https://www.fintechdunyasi.com/turkcellin-platformu-arikovani-hizmetlerini-sonlandirdi/9253/)
- [Tomorrow's technology brands are emerging from Arıkovanı](https://medya.turkcell.com.tr/bulletins/yarinin-teknoloji-markalari-arikovanindan-cikiyor/)
- [Arıkovanı, which launched campaigns for 66 projects, raised 4.6 million TL in support](https://webrazzi.com/2018/12/26/66-proje-icin-kampanya-baslatan-arikovani-46-milyon-tl-destek-topladi/)