Presented at Visa Commercial Solutions Forum 2018 in Istanbul. Explores productivity & financing gaps for SMEs, introduction of digital technologies to address such gaps, and challenges in technology distribution & adoption amongst SMEs.

1. Visa Commercial Solutions Forum ’18:
Challenges in Digitizing SMEs

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• Affordable subscription, zero upfront investment
• Cloud software for desktop & mobile, works anywhere
• Simple; designed for the business owner, not an accountant
• Powerful integrations (banking, e-invoice, payments, e-commerce)
Paraşüt Overview
Designed specifically for micro & small businesses
CONFIDENTIAL

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What We Do
EXPENSES
PAYROLL
NOTIFICATIONS
ONLINE
PAYMENTS
API for 3RD PARTY
INTEGRATIONS
E-INVOICE
INTEGRATION
ACCOUNTING
INTEGRATION
INTEGRATIONS
WITH BANKS
AUTOMATION
DATA
IMPORT/EXPORT
SHARE INVOICES
OVER EMAIL
REPORTS
MOBILE
GOVERNMENT
BANKS
COMPANY
USING
PARAŞÜT
SALESINVOICES
CUSTOMERS
SUPPLIERS
EMPLOYEES
PURCHASEINVOICES

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Micro
< 10 emp.
Small
10-99 emp.
Medium
100-499 emp.
Large
500+ emp.
3mm
300k
12.3k
1.5k
Market Segments

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SaaS in Turkey
Micro & small enterprises are underserved markets for software
SaaS
91%
9%
99% of businesses are micro & small
Micro, <10 Employees
Small, 10-99 Employees
Medium, 100-499
Employees
Large, 500+ Employees
0%
25%
50%
75%
100%
Employment Value Add Sales Exports
SMEs majority of economic output
SME Large Enterprise
22% 17%
17% 17% 16%
14%
20%
7% 10%
0%
20%
40%
60%
80%
100%
Czech
Rep.
Poland Brazil Mexico Russia S. Africa World
Avg
Turkey
2014
Turkey
2017
SoVware as % of business IT spending low
Hardware SoVware Services
Largemarketof3mm
businesses
Lowsoftwarespendingin
micro&smallsegments=
growth
30%
60%
80%
16%
33%
60%
0%
20%
40%
60%
80%
Small Medium Large
SoVware penetra[on
low
EU28 Avg Turkey
82% 66%
47%
0%
25%
50%
75%
100%
Small Medium Large
Though many ready for
cloud soVware
No SoVware but internet
Business Using SoVware
91%of small businesses have
internet
E-Transformationinitiatives from Turkish Revenue Administration driving digitization of
all businesses
CONFIDENTIAL

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Our Investors Our Accomplishments
8000subscribers
CBInsights: Listed in 250 top private companies changing
the face of financial services around the world
TOBB: Top 100 Startups
Second place 2016 & 2017
SaaS startup of the year ’15-’17,
Most innovative startup ‘14

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S U P P LY- S I D E C H A L L E N G E S

8. ICAFR 2017
“At the bottom of the stack of systems, is usually a database
on top of which an application is built. If the data and app
power a critical business function, it becomes a “system of
record.” There are three major systems of record in an
enterprise: your customers, your employees, and your
assets. CRM owns your customers, HCM, owns your
employees, and ERP/Financials owns your assets.”
- Greylock Partners, “The New Moats"
S Y S T E M S O F R E C O R D S

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Emergence Capital

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Emergence Capital

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Greylock Partners, “The New Moats"

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15. ICAFR 2017

16. ICAFR 2017

17. ICAFR 2017

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P L AT F O R M S

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V E R T I C A L I Z AT I O N

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C O N S U M E R I Z AT I O N

22. CRM &
MARKETING
FINANCE HR
OTHER

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• A F F O R D A B L E , U S A B L E , P R A C T I C A L S O L U T I O N S
A R E J U S T B E I N G B U I LT
• B U T I N F R A S T R U C T U R A L C H A L L E N G E S M AY
H I N D E R S U S TA I N A B I L I T Y O F S U C H S O L U T I O N S

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D E M A N D - S I D E C H A L L E N G E S

27. ICAFR 2017
Given the choice between increasing revenue by TL100k, or
decreasing cost by TL100k, what would the SME owner
choose?
T H O U G H T E X P E R I M E N T

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L O W L A B O R P R O D U C T I V I T Y, E S P E C I A L LY I N S M A L L
E N T E R P R I S E S
C H E A P L A B O R I N H I B I T S I N N O VAT I O N

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C H I C K E N & E G G P R O B L E M ?

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C H I C K E N & E G G P R O B L E M ?

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OECD Economics Department

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OECD Economics Department

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S H A D O W E C O N O M Y

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• C E R TA I N I N F R A S T R U C T U R A L C H A L L E N G E S M AY
I N H I B I T D I F F U S I O N O F I N N O VAT I O N
• M A R K E T H A S D I V E R S E H E T E R O G E N O U S N E E D S

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D I S T R I B U T I O N C H A L L E N G E S

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A R P U D E T E R M I N E S D I S T R I B U T I O N
C H A N N E L S

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L I M I T E D C H A N N E L S W I T H D I M I N I S H I N G
R E T U R N S

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P L AT F O R M S A R E S T I L L B E I N G
D E V E L O P E D
• B A N K S A S A P L AT F O R M
• S O F T WA R E A S A P L AT F O R M
• O T H E R P L AT F O R M PA R T N E R S ?

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• SMES A R E H A R D T O R E A C H C O S T -E F F E C T I V E LY
• D I S T R I B U T I O N C H A N N E L S S T I L L N E E D T O B E
D E V E L O P E D

41. www.parasut.com
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sean@parasut.com