Resources · Glossary
Glossary
Definitions for ECMA, ECMA regulatory sandbox, Fayda ID, due diligence, cap tables, and other terms founders and investors use in Ethiopia's private capital market.
ECMA (Ethiopian Capital Market Authority)
Ethiopia's capital markets regulator overseeing securities issuance, market conduct, and private capital frameworks.
ECMA Regulatory Sandbox
A supervised innovation environment under Ethiopia's capital markets regulator for testing compliant products and processes.
Fayda ID (National Digital ID)
Ethiopia's national digital identity system used to verify founders, directors, and authorized signatories.
MInT Certification
Ministry of Innovation and Technology certification recognizing eligible tech startups and innovation entities.
Due Diligence
The structured review investors and fund managers conduct before committing capital to a company.
Investment Readiness
How prepared a startup's governance, financials, and documentation are for investor scrutiny.
Cap Table (Capitalization Table)
A record of who owns equity in a company and how ownership changes after each funding round.
Dilution
The reduction in a founder's ownership percentage when new shares are issued to investors.
Term Sheet
A non-binding document outlining the key economic and governance terms of an investment.
Data Room (Virtual Data Room)
A secure repository of company documents shared with investors during due diligence.
KYC (Know Your Customer)
Identity and background verification processes required before financial transactions.
RegTech (Regulatory Technology)
Technology that helps market participants meet regulatory and compliance requirements efficiently.
Verified Deal Flow
Investment opportunities where participants and company records have passed structured verification.