Smash Notes

Back to Mark Cuban on His Relationship to Wealth and Risk and Why Silicon Valley Investors Are Like Old Hollywood, with Mark Cuban.

How Does Mark Cuban Think About Startup Investing

Mark looks for investments that can return his share in cash flow. For example, if he invests $100K for a 10% of the company, that means this company needs to be able to make $1M in cash flow to give Mark his money back.

Although this thesis does not guarantee a lot of big exists, it also means Mark is not going to lose a lot of money. He can always work with the entrepreneur to help a business like that to make more money.

Transcript

Mark Cuban on His Relationship to Wealth and Risk and Why Silicon Valley Investors Are Like Old Hollywood ·

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch

More from this episode

  1. How Did Mark Cuban Start in TechHe got a job selling PC software in Dallas. Mark did not know anything about the software, but he knew how to read the manual and to figure things out.
  2. Does Money Make You HappyMark Cuban says money does not necessarily make you happy, but it gives you control of your time and enables you to do things, which you might not be able to…
  3. What Is Mark Cuban's Take on RiskMark's got a great advice from his basketball coach Bobby Knight: "Everybody's got the will to win but it's only those with the will to prepare that do."
  4. Why Does Mark Cuban Say This Is the Best Time to Start a Company?Mark Cuban tells The Twenty Minute VC that coming out of the pandemic will be the best time in the history of mankind to start a business.
  5. How Is Our Economy Going to Change Post PandemicOn one hand, when people come out of the lockdown, if they see something new and something different, something exciting, they're going to buy it.
  6. What Is Wrong With Silicon Valley TodayMark Cuban says Silicon Valley today is like the old Hollywood. Everybody wants to be an actor, everybody wants to be an entrepreneur.
  7. Should You Fake It Till You Make ItIf you want to be a successful entrepreneur, you have got to be authentic and self-aware, work hard and take on risks. Faking it does not work.
  8. What Do Founders Misunderstand About SalesThey don't think it's important. They think sales comes with any good product.
  9. How Do You Prioritize Company GoalsFirst, know the vision for your organization and figure out how to align people and goals. Second, hire slow and fire fast, and put your people to work.

People

Featured in: Startup Fundraising: Raise, Bootstrap, or Both? Lessons from Founders and Investors

More answers like this

More with Mark Cuban

More with Harry Stebbings

Related episodes

Plays from this note through the rest of the episode.

Note

Weekly highlights

One letter a week.

The notes worth hearing, with the minute they were said.