The letter, organised by former director general of the British Chamber of Commons and co-chair of the Pro-Brexit campaign group Leave Means Leave, is signed by members of the Alliance of British Entrepreneurs.
Signatories include Mr Martin, as well as venture capitalist Jon Moulton.
It will be delivered to MPs next week, The Daily Telegraph reports.
The letter, backed as it is by a large number of influential British businessmen brands Mrs May’s deal “the greatest act of national humiliation in this proud country’s history”.
It suggests it “offers the eu carte blanche to impose uncompetitive and deliberately punitive policies on the UK, selling British business down the river”.
Furthermore, the letter suggests business leaders “do not believe the Prime Minister’s own tests are met”, adding that they were “desperately worried” at the prospect of being “locked in a customs’ union”.
Instead, they advocate leaving without a deal and making use of the “ready-made framework for co-operation” within the rules of the World Trade Organisation.
To do so would result in “considerable short-term turbulence”, they acknowledge.
However, they profess themselves to be “confident” of the UK’s ability “to set through any short-term upheaval to a prosperous future”.
Their conclusions are a marked contrast with the stance of the Confederation of British Industries in its response to the unveiling of the draft withdrawal agreement on Wednesday.
Director-general Carolyn Fairborn said: “After 20 months of debate, this agreement by Cabinet is progress.
“If passed, it moves the UK one step away from the nightmare precipice of no deal and the harm it would cause to communities across the country.
“Securing a transition period has long been firms’ top priority and every day that passes without one means lost investment and jobs, hitting the most vulnerable hardest. Time is now up.
“This deal is a compromise, including for business, but it offers that essential transitional period as a step back from the cliff-edge.”
More clarity on the final relationship is needed, with uncertainty remaining high, but the document was an important step forward, Ms Fairbairn said.
She added: “Transition and the backstop are not the intended permanent solutions for either side, but should pave the way for more work on the future deal.
“This must secure frictionless trade, ambitious access for our world-beating services, and a say over future rules.
“The UK has had many months of discussion and division.
“A long journey still lies ahead but now is the time for decisions.
“And the first decision is to avoid no deal.”