Powerset, a revolutionary investment program founded in 2022, is turning the traditional venture capital model on its head. By entrusting founders with $1 million to invest in other startups, Powerset is betting on the idea that entrepreneurs make the best investors. This innovative approach has already attracted a cohort of successful founders, including Paul Copplestone of Supabase, Jordan Tigani of MotherDuck, and Wes McKinney, creator of the Python pandas project.

Co-founded by AngelList alum Jack Zeller and Athena founder Jonathan Swanson, Powerset operates as a decentralized venture fund. Unlike traditional VC firms, there are no programming requirements, timelines for deploying capital, or managing partners to veto deals. Instead, founders are free to invest at their discretion, taking home 15% of the profits from each deal.

This experimental model combines elements of angel investing and old-school VC scout programs, but with a twist. Founders are not investing their personal funds, and they're encouraged to mentor and advise the portfolio companies, much like traditional investors. According to Zeller, this approach allows founders to leverage their industry expertise and networks to identify promising startups.

Despite the potential challenges of working with busy founders, Zeller believes Powerset's strategy will yield significant returns. He argues that the best founders, who deeply understand the intricacies of building a startup in their field, are naturally well-positioned to identify top talent and make informed investment decisions.

To qualify for Powerset's program, founders need only be building a company and be immersed in the tech ecosystem. Zeller looks for founders who have reached a scale where they've established organic connections with other entrepreneurs. However, he's adamant that Powerset is not a stepping stone for aspiring full-time venture capitalists, who he believes would perform poorly.

Instead, Zeller seeks out founders who plan to spend the next five to ten years building their own companies. These entrepreneurs, driven by a sense of mission and purpose, are more likely to make thoughtful, high-quality investments that align with their values and expertise. As Powerset prepares to open applications for its third cohort, the startup community will be watching closely to see if this innovative approach can disrupt the traditional venture capital landscape.