Founder Options Market

A marketplace for investors to purchase options/rights to invest in promising founders' future companies, similar to how TV networks would buy options on scripts and talent.

Key Points:

• Core Concept:

  • Investors buy the right of first refusal to invest in a founder's next venture
  • Not equity or income share agreement - purely an option to invest in future companies
  • Time-limited contracts (e.g., 5 years, 18 months)

• Structure Example:

  • Founders sell investment slots for ~$15k each
  • Multiple investors can buy options (e.g., 10 slots)
  • When founder starts new company, option holders get first dibs on pre-seed round
  • Founder gets upfront capital (~$150k) to search for next business idea

• Market Opportunity:

  • VCs would likely allocate few hundred thousand dollars
  • Target is placing bets on ~25 high-performing founders
  • Particularly valuable for tracking promising founders between ventures
  • Helps investors secure early access to future deals

• Benefits:

  • Founders get search capital
  • Investors get guaranteed deal flow
  • Solves the problem of keeping tabs on promising founders
  • Creates predictable access to early-stage rounds

Similar concept could apply to other talent markets like NCAA athletes now that compensation rules are changing.