Multi-Company Contracts & Financing Docs

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Intro to MCC, Financing Docs, some Contracts… New Things.

Content Creators are getting investment. MrBeast is also (probably) going to IPO, which will unlock an entirely new demand for venture investing within 1) early-stage holding companies and 2) content creators as a whole. Creator financing as a whole is still developing, but Creator Investing has been alive and well. In the advancement of Creator Investing, a new structure has to reflect existing, current Creator Investments.

Multi-Company Contracts (MCC)

A Multi-Company Contract (MCC) is an investment structure set for an early-stage holding company investment. This includes what the founder and investor agree with on as “Founder Work” and inclusive to the investment. An MCC, or a general holding company investment, should be deployed on agreement that the mission and vision of the company includes an acquisition quickly in the earliest stages of company formation, a company that expects multiple forms of revenue and/or a company to which the value is tied almost centrally (and obviously) to the founder themselves.

Intention

The MCC’s intentions are to be:

• Founder friendly
• Equity, not debt
• Philosophically aligned with the process of raising early-stage capital

Document Iteration

MCC: X-year ROFR contract (short & long term iterations)

MCC: X-year contract w/rev share (for management-style deal)

Creator-Specific

Creators, specifically, have a complicated standard business structure.

As an example, in 2024, creators business income consisted of:

• Platform Revenue Sharing: $20-30B
• Direct Fan Monetization: $10-20B
• Merchandising & E-Commerce: $15-20B
• Affiliate Marketing: $5-10B
• Content Licensing & IP Sales: ~15-10B
• Courses & Digital Products: $5B

And while it is common for venture investors to solely invest in single-company C or S Corps, MCCs give the founder to flexibility to mix into multiple streams of revenue & equity positions at the same time. Content Creators also partake in joint ventures and work with operating partners, meaning that while they can be considered “co-founders.”

Very Obvious Pro’s

• Tax efficiency
• Better capital allocation
• IP Ownership
• Unified brand strategy

Case Study 1:

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Investor Interest

Simply put, a MCC is the strongest contract of conviction a VC can offer a founder. It is a sign that the VC has high conviction of the individual founder’s ability to figure it out. It gives founders flexibility to take over holistic ecosystems.

It also allows for:

• Betting on the Founder, Not Just the Idea. The best founders aren’t one-hit wonders. They’re people who can generate idea after idea, adapt to the market, and find opportunities others miss. A traditional investment forces you to bet on a single company. If that fails, you’re out of luck—even if the founder goes on to build something better. An MCC changes that. By investing in the person, you capture the upside of everything they create, not just their first swing.
• Portfolio Exposure Without More Work. Normally, investing in multiple companies means multiple deals, each with its own diligence, paperwork, and risk. An MCC simplifies this. One agreement gives you exposure to a founder’s entire portfolio of projects. That’s efficient. And it means your returns are diversified without the hassle of managing multiple investments.
• Access to a New Breed of Founder. Some of the most interesting founders today don’t fit the old Silicon Valley mold. They’re creators, influencers, or multi-disciplinary builders who see opportunities across industries. These people aren’t going to start just one company. If you want access to this new class of founders, you need a structure that works for them. The MCC gives you that. It aligns with how they operate, so you’re not stuck trying to force a square peg into a round hole.
• Long-Term Alignment. An MCC aligns your incentives with the founder’s. Instead of pushing them to focus on a single venture for 10 years, you’re giving them the freedom to create value in whatever way they’re best at. That flexibility doesn’t just benefit the founder—it benefits you. If the market changes or a project stalls, the founder can pivot without needing to renegotiate your deal. They’re always building, and you’re always participating.
• Diversified Potential Upside. When you invest in a single company, your return is tied to that company’s success. With an MCC, your return grows as the founder grows. If they launch a breakout venture, spin off a high-value project, or leverage their network for a joint venture, you win. It’s not just about mitigating risk—it’s about maximizing opportunity.

Founder Interest

For

• Founders want Flexibility. The problem with traditional VC is it locks you into a single idea. Maybe that idea works, maybe it doesn’t. Either way, it’s a binary bet. A multi-company contract lets founders bet on themselves. They can build multiple companies, try new ideas, or even spin out smaller projects. For founders, this is huge. It means you’re not stuck in the “one startup forever” game. You’re free to build what works, pivot when needed, and focus on what you’re best at.
• It’s About the Person, Not the Project. Let’s face it: the best founders aren’t just good at running a company—they’re magnets for opportunities. A multi-company contract recognizes this. It invests in the founder as the asset, not just the company they’re working on today. For a lot of founders, especially creators, this is the future. Your audience, reputation, and network are just as valuable as any product you’re building. Why shouldn’t your funding reflect that?
• More Upside, Less Risk. Here’s the math: if you’re tied to one company, everything rides on that. With multiple ventures, you’re spreading risk. Some projects will succeed wildly, others won’t, but the overall upside is bigger. Investors get this too. They’re not just betting on one idea—they’re betting on the portfolio you’re building around yourself. It’s diversification, but without the complexity of multiple term sheets.
• Simpler, Smarter Funding. Multi-company contracts make everything easier. Instead of renegotiating every time you launch something new, the terms are already set. You’re building a portfolio under one agreement, not juggling five different deals.

Early-stage holding companies give founders the ultimate level of independence for:

• Ownership and equity allocation.
• Governance (e.g., creator autonomy vs. investor oversight).
• Revenue distribution and reinvestment.
• Flexibility for spin-offs and joint ventures.

6. How Creator Holdco Investments Work in Practice

• Provide a step-by-step breakdown:
  • Initial funding into the holdco.
  • Equity split across the creator's ventures.
  • Ongoing investments, exits, and liquidity events.
• Include a hypothetical or real-world example of a creator who raised through this model.

7. Challenges and Solutions

• Potential obstacles:
  • Creator resistance to giving up equity.
  • Valuation difficulties for personal brands.
  • Legal and financial complexity.
• Solutions:
  • Transparent contracts.
  • Clear value proposition for creators.
  • Educating creators on long-term wealth creation.

8. The Future of Creator Holdco Investments

• Discuss how holdcos could redefine the creator economy.
• Explore intersections with trends like AI tools, Web3, or tokenized economies.
• Highlight how this model could pave the way for creators to become serial entrepreneurs.

9. Conclusion

• Recap the key points.
• Emphasize the opportunity for both creators and investors.
• Call to action: encourage collaboration, experimentation, and dialogue on holdco structures.

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