‘Angel Investor: An angel investor is usually a high net worth individual who provides financial backing for small startups or entrepreneurs ‘Angel Round: Angel round is usually part of the seed round funding. In the context of Pakistan, it isparticularly smaller amounts of funding that comes from high net worth individuals. ‘Angel Syndicate: Angels who share a vision or a common goal may sometimes come together to pool their financial resources into a fund and co-invest based ‘on a shared philosophy. Benchmarking: @ way of determining how well a business unit or organisation is performing compared with other units elsewhere Branchless Banking: It is the mode of rendering financial services through distribution network without having conventional branch brick and mortar set up. Cluster: Refers to a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Co-working Space: Coworking is a business services provision model that involves individuals working independently or collaboratively ina shared office space. Corporate Venture Capital: Corporate venture capital is when corporate funding is directly invested in external startups in retum for equity. The major difference between the typical venture capital funds and corporate Ves Is that the former is more focused on financial returns while the latter may also involve strategic gains from such deals. GLOSSARY Credit Loss Subsidy: (Credit Subsidy) The estimated long-term cost to the federal government of a direct loan or loan guarantee. Development & Launch: The period ust after a company has launched end is working on their proof of concept. Disinvestment Returns: Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary. Dividends: Refers to the sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves), Donor Fund: Capital that's provided to startups by donor agencies. It allows donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time (NP Trust) Donor Organization: Organizations that provide grants to other organizations or individuals for work that aligns with the donor organizations mandate. Examples of some donor organizations in Pakistan are American Red Crescent, United States Agency for international Development (USAID), Aga Khan Development Network (AKON), World Health Organization (WHO), ete. Pre-Seed Capital: Capital that comes in at the earliest stage of funding a company. Also known as ‘pre-seed’, the capital ensures that the company is able to gets its operations off the ground. Early-Stage: A company at this stage should have begun to generate revenue and regularly taking on new customers. {Scanned with ' (3 CamScannerEntrepreneurial Ecosystem: is a product of the surrounding environment, in particular business environment, key actors, investment climate, and the evolving culture and attitudes. Factor-driven Economy: is the least developed. It is dominated by subsistence agriculture and extraction businesses, with a heavy reliance on (unskilled) labour and natural resources. Family Investment Office: Family investment offices are private wealth management firms for high net worth families who are interested in investing, In other ecosystems, its been seen that such firms can be completely outsourced but in case of Pakistan most family investment offices are managed by the investing family itself Fifth Generation Technologies: Advanced and innovative technology that usually includes artificial inteligence. 5G technology including camera, MP3 recording, video player, large phone memory, dialing speed, audio player and much more, Financial inclusion Services: Financial inclusion means. that individuals and businesses have access to useful ‘and affordable financial products and services that meet their needs - transactions, payments, savings, credit and insurance ~ delivered in a responsible and sustainable way. (World Bank) Frontier Market: Capital markets located in developing countries that are less advanced. In countries where investable stock markets are not as established as ‘those located in emerging markets. Gender Parity: is a statistical measure that provides a numerical value of fernale-to-male or girl-to-boy ratio for indicators such as income or education. * bp /wnewnvestopediacomerms/Vinvestmertund a9 Grant: It refers to a sum of money offered to a startup oF company to assist them with their growth and work without any expectation of return of the principal amount funded Growth & Expansion: A stage where a business can opitalize on its stability by broadening its horizons with expanded offerings and entry into new geographies High-growth Company: Although growth cannot be quantified with accuracy, companies that perform better (ie. has higher revenue, customer acquisition, greater sales, etc) or those who foreseeably will perform better than their respective industry/market in general are categorized as high growth companies. Ideation: A simple product idea with the minimum features needed to satisfy a demand from a group of users/clients. Innovation: The economic application of a new idea. Product innovation involves a new or modified product; process innovation involves a new or modified way of making a product Innovation sometimes consists of ‘anew or modified method of business organization (Oxford. Reference) Investment Funds: A pool of capital sourced from multiple investors used to collectively purchase| securities while each investor retains ownership and| control of their own shares.** Islamic Finance: Islamic finance refers to the means by which corporations in the Muslim world, including banks and other lending institutions, raise capital in accordance with Sharia, or Islamic law. (Investopedia) {Scanned with ' (3 CamScanner‘Mark-up: The excess of the selling price of a product ‘over the cost of making of buying it. The mark-up on any product has to caver the overhead costs of the firm, as well as provide a profit margin. (Oxford Reference) ‘Maturity and Possible Exit: After successfullynavigating the expansion stage a business is now making stable profits and/or may opt for an exit through acquisition ‘Mutual Fund: It is a type of financial vehicle made up of pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets. Pre-revenue Phase (of a business): Prerevenue phase business is a business that has not generated sales/ revenue as yet Pre-Seed Round: Funding at this stage/round is to ‘maximize the future funding opportunities for a startup by financing early stage product development. It is an ‘opportunity for the recipients of such funding to test their idea by developing beyond just a prototype. Pre- seed funding usually comes from friends and family. Pre-series A Round: Funding that is typically categorized {as mid-round and falls between seed round and series ‘A round is often called Pre-Series A In case of some Countries where the series A bar is set too high pre- series A round is a good way of bridging that gap. Private Equity: Refers to capital or shares of ownership that are not publicly traded or listed. For this reason, private equity is established through private equity firms or funds. Return on Investment (or investment returns): Return on investment (Rol) is a measure of the efficiency of a single investment or multiple investments against each other. Return on investment is calculated by measuring the investments cost against its benefit. Scalable Business Model: Amodel that sees increasing returns as it invests more in capital labor and services, Revenues in a scalable business rapidly outpace expenses. ‘Seed Round Funding: Refers to the period just after a company has launched and is working on proof of concept of their product or service for early adopters. ‘Series A: Companies with a consistent track record of high revenues are usually the ones who opt for and meet the criteria for this kind of funding, Series A round funding is often used by startups to optimize their user base and product offerings ‘Series B: Companies that have received series A funding have already established a considerable user base and are now ready to operate on a larger scale. Series B funding helps companies move past the development stage by expanding their market reach. Hence, startups that receive series B funding tend to use the money to Grow the company to meet the respective demands, Series C: Series C funding is used by startups to expand their product line, reach into new markets, etc. Since, companies at this stage of funding are quite successful, investors are looking to double their returns by investing in such high growth companies. Series D: Series D funding is raised when a startup ‘sees a new opportunity to expand in the market before making an Initial Public Offering (IPO) and they require a final boost to get there. It often helps the startup increase their value. ‘Social Entrepreneurship: Social entrepreneurship is an approach by start-up companies and entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or envitonmental issues. All social enterprises share three characteristics: innovation, ‘openness to learning and value driven. Special Economic Zones: A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. Stage of the Business Lifecycle: For the purpose of this study, stages of a business lifecycle have been divided into the following 5 categories: ideation, development & launch, early stage, growth & expansion, and maturity & possible exit Scanned withStages of Business: Refers to the progression of a business and its phases over time, and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline. ‘Stages of investment: Startups go through the following stages as they raise capital: angetround, pre-seed round, seed round, pre-series A round, series A, series B, series C, and Series D ‘Startup: Although, there is no single accurate definition of what constitutes a startup or what the defining characteristics are but for this study we have operationally defined startup keeping in view Pakistanis context. A startup is a company that solves a problem (common or uncornmen) by filing a gap in the market using an innovative approach where the business is often high risk and success is not guaranteed. An important characteristic of a startup is its potential to {grow at a rate much higher than traditional businesses, Moreover, where a startup is usually thought of as a business established fairly recently (note: not every newly established business is a startup, ie. a PizzaHut franchise, Starbucks, etc.), it is not always the case. ‘Some fairly old enterprises that have raised say Series © funding, such as Careem, have still been termed startups. However, for this study we have settled on a 5 to7 years of formal operations as a timeline for startups to become ‘startup graduates. ‘Sustainable Development Goals: For its 2030 agenda, the United Nations has set Sustainable Development Goals (SDGs), otherwise known as the Global Goals, which are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace ‘and prosperity. ‘Tax Holiday: Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment. These 17 Goals build on the successes of the Millennium Development Goals, while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities The goals are interconnected - often the key to success (on one will involve tackling issues more commonly associated with another Valuation: Refers to the analytical process of determining the current (or projected) worth of an asset or a company. Venture Capital Fund: A fund that provides venture capital financing using investors’ money who often seek Private equity in high growth startups. Venture Capital: Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long:term growth potential. Venture capital generally comes from well off investors, investment banks, and other financial institutions. Venture Capitalist: A venture capitalist (VC) is en investor that provides capital to firms exhibiting high growth potential in exchange for an equity stake {Scanned with ' (3 CamScanner