Cuban refuses to invest in venture-backed companies that buy market share
Mark Cuban · 20VC: Mark Cuban on His Relationship To Wealth and Risk, Why Coming Out of The Pandemic Will Be The Best Time In The History of Mankind To Start A Business & Why Silicon Valley Investors Are Like Old Hollywood · May 4, 2020 · at 15:29
Investor Mark Cuban explains to 20VC host Harry Stebbings why he refuses to back capital-inefficient businesses that rely on massive venture funding to purchase sales and market share.
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“The type of investments I won't do or don't do is ones where companies buy sales. So this is going to be a company that has to raise five hundred million to do one hundred million in sales because they want to own market share. And then they can get an exit because they own such big market share or have a widely distributed customer base. Then no, you're not going to see me invest in that at all.”
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