How Does Mark Cuban Think About Startup Investing

at 13:09

From the episode: Mark Cuban on His Relationship to Wealth and Risk and Why Silicon Valley Investors Are Like Old Hollywood

Answer

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.

Where this answer comes from

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

Show: The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch
Episode: Mark Cuban on His Relationship to Wealth and Risk and Why Silicon Valley Investors Are Like Old Hollywood
Date: May 4th, 2020

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