A transparent, equity-like compensation model that rewards you for both the work you do today and the companies we build together over time.
December 2025 8 min read
When you join our venture studio, it won't be like taking any other job. You'll become part of an engine that builds successful companies. At IncepLabs we believe your compensation should reflect that. Studio Profit Units (SPUs) are our way of making you a true partner in the things we create.
Unlike traditional equity grants that tie you to a single company, or bonuses that reward only short-term performance, IncepLabs SPUs give you a stake in both our ongoing success and the long-term value of every company in your portfolio.
The Core Idea
Think of SPUs like being a venture partner: you accumulate profit interests across multiple "vintages" of companies over your tenure. The longer you stay, the more vintages you collect, and the more diversified your upside becomes.
Two Streams, One Unit
What makes SPUs unique is that a single unit entitles you to distributions from two completely different income streams. You don't have to choose between cash now and wealth later. You get both.
How Your SPUs Generate Returns
Current Income Stream
Paid Half-Yearly
A share of our consulting profits, studio fees, and other income from mature portfolio companies, distributed twice a year to active employees.
10-20% of net operating profit flows to the SPU pool
Your vested units earn proportional distributions
Functions like a performance bonus, but systematized
Venture Upside Stream
Paid at Exit
When portfolio companies exit through acquisition, IPO, or other liquidity events (e.g., dividends), a share of the proceeds flows to SPU holders.
10-20% of studio's exit proceeds go to the SPU pool
Only units tagged to that vintage/company participate
Functions like equity: deferred wealth creation
Earning Your Units
Our SPU model is built on four interconnected pillars that work together to create transparent compensation system:
1
Vintage Pool Structure
Each calendar year is a distinct "vintage" of portfolio companies. 10-20% of exit proceeds flow to the Employee Profit Pool, subdivided by vintage. Only holders of that vintage's units participate in its exits.
2
Semi-annual Unit Allocation
Your yearly grant is calculated as: Base Units x Seniority Multiplier (1.0x-5.0x) x Performance Multiplier (0x-3.0x). Higher levels and stronger performance mean more units.
3
Direct Contribution Bonus
Work directly on a portfolio company? Earn extra tagged units: +75-100% for primary contributors, +30-50% for secondary, +10-20% for supporting roles. More skin in the game for the companies you build.
4
Vesting Schedule
6-month cliff, then half-yearly vesting over 4 years (12.5% each period). Partial acceleration possible on exits. Vested units stay with you forever. Unvested units forfeit on departure.
+
Lookback Provision
Made a material contribution to a prior-year company still in incubation? You may receive a discretionary grant in that vintage. No forward grants: you can't earn units in vintages after you leave.
Let's dive deeper into each of these pillars.
The Vintage System
Instead of receiving units in "the studio" as a whole, your SPUs are tagged to specific vintages: the years in which portfolio companies were founded or actively incubated.
Why Vintages Matter
If a colleague who joined in 2021 helped build a company that exits in 2028 for $100M, they deserve that payout, not someone who joined last month. Vintages ensure your share from the success that you actually helped achieve.
When you join, you start accumulating units in the current vintage. Over time, your portfolio grows:
Year 1 (2026)
You receive your first SPU grant, tagged to the 2026 Vintage. You now have upside in all companies greenlit this year.
Year 2 (2027)
You receive a new grant for the 2027 Vintage. Your portfolio now spans two years of companies. Your 2026 units continue vesting.
Year 3 (2028)
Another vintage added. If a 2026 company exits, you receive a payout based on your vested 2026-tagged units.
Year 5+ (2030+)
You've built a diversified portfolio across multiple vintages. Your accumulated units represent years of contribution and growing passive income potential.
Seniority Multipliers
As you grow in the organization, your potential SPU allocation grows with you:
1.0x
Fellow VB
1.5x
Venture Builder
2.25x
Senior VB
3.5x
Lead VA
5.0x
Venture Partner
Performance Multipliers
Your annual performance review directly shapes your SPU grant. As we are an impact-driven we think about rewards as such. Those who go above and beyond receive significantly more, while underperformance means fewer units.
0x
Below Expectations
0.5x
Developing
1.0x
Meeting
1.5x
Exceeding
3.0x
Exceptional
Example Calculation
A Lead Venture Builder (2.25x) with an "Exceeding Expectations" rating (1.5x) would receive 3.375x the base allocation for that year's vintage.
Direct Contribution Bonus
If you work directly on a portfolio company as an embedded team member, lead builder, or significant contributor, you earn additional tagged units for that specific company. This means you get extra upside from the companies you personally help build, beyond your general vintage participation.
Primary contributor (embedded founder, lead): +75-100% bonus units
Secondary contributor (significant project work): +30-50% bonus units
Supporting role (occasional assistance): +10-20% bonus units
Vesting: How Your Units Mature
Like most equity-style compensation, SPUs vest over time. This ensures long-term alignment and rewards sustained contribution.
Cliff: 6 months (you begin participating in distributions after 6 months)
Full vesting: 4 years total
Cadence: Half-yearly vesting after the cliff (12.5% every 6 months)
Because our Current Income stream pays out half-yearly, you'll start seeing real cash from your SPUs within your first year, not just a promise of distant future value.
Acceleration Events
Certain events may accelerate the vesting of your unvested SPUs:
Company exit while employed: 50% of unvested units tagged to that specific company accelerate immediately
Acquisition of studio: Board discretion; typically 50-100% acceleration depending on circumstances
Death or disability: 100% acceleration of all unvested units
Termination without cause: Pro-rata vesting through your termination date
See It In Action
Let's walk through three realistic scenarios that illustrate how SPUs work in practice:
Scenario A: Ongoing Participation
Galadreel, Senior Venture Builder (Level 3), Exceeding performance (Rating 4) / Joined January 2024 / Primary contributor to PortCo Alpha (2024 Vintage)
2024 Grant Calculation
Base allocation: 1,000 units × 2.25 (seniority) × 1.5 (performance) = 3,375 SPUs
Contribution bonus: +2,531 SPUs tagged to PortCo Alpha (75% of base)
Total 2024 grant: 5,906 SPUs
$7,380
Q4 2024 Distribution
738
Vested Units (12.5%)
$105,458
PortCo Alpha Exit (2027)
Q4 2024 Distribution (Consulting): Net consulting profit: $400,000 → SPU pool (20%): $80,000 → Galadreel's share: (738 ÷ 8,000 total vested) × $80,000 = $7,380 2027 PortCo Alpha Exit: Exit proceeds to studio: $5,000,000 → SPU pool (10%): $500,000 → Galadreel's share: (2,531 ÷ 12,000 Alpha-tagged) × $500,000 = $105,458
Scenario B: Post-Departure Retention
Beelbau, Lead Venture Architect (Level 4) / Departed June 2026 (good leaver) / Accumulated units: 8,500 SPUs across 2024-2026 vintages
5,312
Vested Units Retained
3,188
Unvested Units Forfeited
Treatment
Forfeits 3,188 unvested units (return to studio pool)
Retains 5,312 vested units permanently
No longer receives Current Income distributions (active employees only)
Receives Venture distributions when 2024-2026 vintage companies exit
Scenario C: New Hire Timing
Manhuee, Fellow Venture Builder (Level 1) / Joins November 2025 / 2025 Vintage contains PortCos Delta and Echo
Treatment
Receives 2025 Vintage SPUs (pro-rated for partial year, at management discretion)
Subject to 6-month cliff — no distributions until May 2026
Cannot receive units in 2024 Vintage (no lookback — didn't contribute)
If Manhuee significantly helps PortCo Delta in early 2026, may receive 2025 lookback grant
Key Insight
The vintage system protects existing employees: Manhuee joining in late 2025 has no claim on companies built in 2024, ensuring Galadreel and Beelbau's contributions are not diluted by new hires.
What Happens When You Leave?
Life happens. If you move on from the studio, here's how your SPUs are treated:
Vested units: You keep them. Forever. They continue to pay out from the Venture Upside stream whenever relevant companies exit. (Current Income distributions are for active employees only.)
Unvested units: These are forfeited and return to the studio pool.
Impact Does Not Disappear
This means the work you did matters permanently. If you spent three years helping build our 2025-2027 vintage companies, you'll benefit when those companies succeed, even if you've moved on to your next adventure.
Vested Units
Voluntary resignation (good leaver): Retain all vested units indefinitely; continue receiving Venture Upside distributions (Current Income distributions end upon departure)
Termination without cause: Retain all vested units indefinitely
Retirement: Retain all vested units indefinitely
Termination for cause: Forfeit all units (both vested and unvested)
Departure to direct competitor: Retain vested units, but venture distributions are capped at 3 years post-departure
Unvested Units
Unvested units are forfeited and return to the studio pool upon departure, regardless of the circumstances.
Why This Model Works
Fairness
Vintage isolation means no "free riding" on past successes. You earn from what you helped build.
Alignment
Contribution bonuses reward direct impact. Your extra effort on a company means extra upside from that company.
Immediacy
Half-yearly distributions from consulting profits mean you see real returns within your first year.
Compounding Value
As vintages accumulate, your portfolio grows. Each year adds another layer of potential upside, rewarding those who grow with us.
Why SPUs Beat the Alternatives
You might wonder why we don't just give you shares in the holding company, or direct equity in each portfolio company. Here's why SPUs are better for everyone:
Three Approaches to Studio Compensation
PortCo Equity
Small slivers of equity (e.g., 0.25%) in every portfolio company you touch.
The problem: Creates a messy cap table that scares away Series A investors. 15 studio employees with tiny stakes makes due diligence a nightmare.
Cap table complexity
HoldCo Equity
Shares in the studio's holding company itself.
The problem: Notoriously illiquid. You only get paid if the entire studio exits (rare) or issues dividends (tax-inefficient). You could end up waiting decades for the payoff.
Liquidity trap
Studio Profit Units
Phantom equity with pass-through liquidity from every exit.
The advantage: When PortCo X sells, the studio gets its check and immediately distributes to SPU holders. Cash in hand, potentially years before HoldCo equity would pay.
Pass-through liquidity
No Dilution from New Hires
Because SPUs are tagged to specific vintages, new employees joining the studio don't dilute your exit proceeds from past companies. Someone hired in 2028 has no claim on your 2025 Vintage units. Your share of exits from companies you helped build remains protected.
Common Questions
How is this different from just getting equity in each portfolio company?
Direct equity in portfolio companies ties your fate to individual company outcomes and creates cap table complexity. SPUs give you diversified exposure across all companies in your vintages, with simplified administration. You participate in the upside without becoming a direct shareholder. Plus, your exit proceeds are protected from dilution by new hires who never contributed to those companies.
What if I join mid-year?
You'll receive a pro-rated SPU grant for the current vintage. If you make significant contributions to a company from the previous year that's still in active incubation, you may be eligible for a "lookback" grant of units in that prior vintage.
What if a portfolio company takes 10+ years to exit?
Your vested units remain valid and will pay out whenever an exit occurs. This mirrors how venture capital carry works: partners retain their participation even in long-duration investments. While employed, the Current Income stream provides ongoing returns while you wait.
Can I convert my SPUs to actual shares in a portfolio company?
Generally, SPUs remain phantom equity that pays cash upon distribution events. This keeps cap tables clean and simplifies tax treatment. However, there are times when you may align so deeply with a portfolio company's vision that you want to join them full-time. In these cases, conversion arrangements can be negotiated as part of your transition to the portfolio company team.
How are distributions taxed?
SPU distributions are structured through the Hungarian MRP (Munkavallaloi Reszvenyprogram), which provides more favorable tax treatment than standard income. This means your distributions are taxed similarly to dividends rather than ordinary wages, resulting in meaningful tax savings compared to a traditional bonus structure.
Why do seniority levels have different multipliers?
The multipliers aren't arbitrary — they reflect real differences in how each level contributes to studio success:
Entry-level roles focus on execution within defined scope. You're building skills and delivering work assigned to you.
Mid-level roles take ownership of outcomes. You're not just doing tasks — you're solving problems and driving results with less guidance.
Senior roles shape strategy. Your decisions influence which bets we make and how we make them. Mistakes here are costlier, so the upside is greater.
Leadership roles multiply other people's effectiveness. A great Lead doesn't just do their own work — they make everyone around them better.
Partner-level roles carry foundational risk. You're accountable for studio-wide outcomes and portfolio success, often with personal reputation and capital on the line.
The multiplier gap between levels reflects the compounding impact of seniority: a Partner's decisions ripple across every company and every team member, while entry-level contributions, though valuable, have a narrower blast radius.
What if I want to join a portfolio company full-time later?
SPUs cannot be directly converted to equity in portfolio companies — they remain phantom instruments that pay cash upon distribution events. This maintains cap table simplicity for portfolio companies.
However, if you decide to join a portfolio company full-time after working at the studio, special arrangements can be made. The studio can convert some of its own shares in that portfolio company to essentially turn you into a founding member with direct equity. This is negotiated on a case-by-case basis as part of your transition to the portfolio company team.
How am I protected from dilution when new people are hired?
Each vintage has a predetermined maximum unit supply established at vintage creation. Once allocated, no additional units are created for that vintage. This provides strong anti-dilution protection:
New hires: Receive units only in current or future vintages — they cannot dilute past vintages
Promotions: Higher multipliers apply to future grants only; your past grants remain unchanged
Rehires: Treated as new employees; no restoration of previously forfeited units
This means someone hired in 2028 has absolutely no claim on your 2025 vintage units. Your share of exits from companies you helped build is permanently protected.
Does the Current Income Pool get diluted as the team grows?
Yes, the Current Income Pool does experience natural dilution as the team grows — more employees means more vested units sharing the same percentage of profits. However, this is balanced by several factors:
Revenue correlation: Studio growth should correlate with consulting revenue growth, expanding the absolute pool size
Gradual vesting: New hire units vest gradually (6-month cliff, 4-year schedule), limiting immediate dilution impact
Hiring discipline: This dynamic naturally incentivizes hiring decisions that are accretive to per-employee profitability
The key insight is that smart hiring grows the pie faster than it divides it. The Current Income Pool is designed to reward collective success, while the Venture Upside Pool (protected by vintages) ensures your individual contributions are never diluted.
Why does performance have such a wide multiplier range (0x to 3x)?
Our compensation philosophy separates two things: your stability and your upside.
Your base salary is intentionally set slightly below market. It's set to remove financial stress and let you focus on building great things, but it's not where the real compensation lives.
SPUs are where the upside is. They're carry, your share of the value we create together. And impact varies dramatically, even among talented people at the same level:
A developer who ships a feature that becomes a portfolio company's core differentiator creates more value than one who ships competent but forgettable work
A designer whose product intuition saves months of iteration creates more value than one who executes briefs well
A builder who spots a pivot opportunity early creates more value than one who keeps optimizing the original plan
Everyone meeting expectations earns carry — that's the baseline (1x). But the spread from "developing" (0.5x) to "exceptional" (3x) means top performers earn 6x more SPUs than those still finding their footing. This reflects reality: in venture, returns are concentrated in the outliers, and so is the upside for the people who create them.