The Contribution & Reward framework is the second building block of he Open Incubation model. It enables a lean venturing approach based on sharing and collaboration between participants. Through the Contribution & Reward framework, participants make their envisaged role, contribution and reward explicit and transparent. It facilitates the venture team to quickly agree on the rules of engagement of the venture and to (re-)align their (changing) roles and contributions with the rewards.
The participants of a venture are grouped in six pre-defined categories (see the first principle in the Rules of Engagement) that will govern their envisaged roles and contributions. The roles are: Founders, Founding Investors, Friends Family & Crowd, Key Employees, Venture Partners and Venture Capital. In addition, there is a Leaver category for those who no longer contribute to the venture.
Starting with the six roles, venture teams discuss and write down the expected contribution of the venture team members. Following agreement on the roles and contributions, the venture team will discuss the expected rewards. There are four categories of rewards relating to leadership, ownership, cash and in kind compensation. Each category refers to a set of possible rewards of the participant.
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