Billionaire entrepreneur Mark Cuban has sounded the alarm on a monetary blind spot that he says has quietly derailed extra “Shark Tank” offers than most entrepreneurs notice.
What Occurred: Talking at SXSW on Tuesday, Cuban shared a hard-earned lesson from years of vetting firms on the hit present: many small enterprise house owners assume they’re worthwhile — however when the numbers are scrutinized, they don’t seem to be.
“I can’t inform you what number of instances we’ve appeared below the hood of a enterprise that thought they had been worthwhile, and so they weren’t,” Cuban mentioned.
“They thought their margins had been sufficient to cowl their prices, and so they did not,” Cuban mentioned, hinting at a number of offers that unraveled in due diligence.
He acknowledged that many entrepreneurs get caught up within the pleasure of promoting or constructing a model and ignore the monetary foundations.
See Additionally: Mark Cuban Predicts The World’s First Trillionaire Received’t Be Elon Musk – It’ll Be Whoever Can Grasp Ai ‘In Methods We By no means Thought Of’
“You are all fired up about what it’s it’s a must to do,” he added, however understanding in regards to the accounting and all the pieces else is extra essential as a result of if entrepreneurs do not know that that is calling for bother.
Subscribe to the Benzinga Tech Tendencies publication to get all the newest tech developments delivered to your inbox.
Why It is Essential: In line with the U.S. Bureau of Labor Statistics, about 50% of small companies fail throughout the first 5 years — and poor monetary administration is commonly a number one trigger.
Cuban’s warning highlights a standard however crucial misstep: failing to trace unit economics, revenue margins, and money circulate in actual time. It is not only a Shark Tank subject — it is a small enterprise epidemic.
Cuban himself began incomes cash at a younger age by promoting rubbish luggage door-to-door when he was 12. A couple of years later, he made cash by promoting stamps and cash. Throughout his college years, Mark took on a number of ventures, together with working as a bartender, instructing disco classes, and taking part in chain letter schemes.
At this time, he has a web price of $7.69 billion, in keeping with the Bloomberg Billionaires Index.
In 2022, Cuban mentioned the monetary setbacks he’s confronted on Shark Tank,” regardless of pouring practically $20 million into numerous startups. Throughout his look on the Full Ship Podcast, the billionaire mentioned that his investments haven’t turned a revenue.
One among his greatest losses was Breathometer, a smartphone Breathalyzer startup he referred to as his worst funding. The corporate secured backing from all 5 sharks, together with Cuban, Lori Greiner, and Kevin O’Leary, making it one of many present’s most notable offers.
Picture through Shutterstock
Take a look at extra of Benzinga’s Client Tech protection by following this hyperlink.
Learn Subsequent:
Disclaimer: This content material was partially produced with the assistance of Benzinga Neuro and was reviewed and printed by Benzinga editors.
Market Information and Knowledge dropped at you by Benzinga APIs
© 2025 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
