At the point a new Idea is selected to progress through the incubation process, the Entrepreneurs and Innovators associated with the solution register their ownership as shareholders of the new Venture. Any Intellectual Property is transferred to and wholly owned by the new Venture. How equity is divided amongst team members is at their discretion. Incubation costs are added to the balance sheet and are funded through a convertible loan secured against the assets of the Venture. The flexible terms of the convertible loan aim to recover all, or some of the debt and convert the balance to new Equity, on Exit. The valuation of a Venture on Exit is determined by the market for series A funding.