Mark Cuban has never been shy about telling entrepreneurs what he thinks they need to hear.
That was on full display on Monday at The Venetian in Las Vegas during the Clover x Shark Tank Summit, where the billionaire investor and former “Shark Tank” star challenged founders to cut through the hype, put customers first, and rethink how they use new technology.
From bootstrapping in a tough economy to protecting intellectual property in the AI age, Cuban shared his rules for building and surviving in business.
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Customers matter more than investors
Cuban argued that too many founders obsess over raising capital before they’ve proven demand.
“So many people get caught up in raising money, but you need customers,” he said.
“If you get customers, you can grow your business and own your business. We focus too much on the Silicon Valley ethos, and people think they need to raise money first.”
Bootstrapping builds wealth
The longer entrepreneurs delay outside funding, the better their chances of keeping equity and reaping rewards.
“The longer you work to build your business, the further you get before raising money if at all, the richer you are going to be,” Cuban said.
“If you find yourself in a position where you don’t have to raise money at all, you can send me a check.”
Talk to customers — even when it’s awkward
In an inflationary environment where cash flow is tight, Cuban said founders need to double down on communication.
“People are losing their jobs; people are uncertain. What that means is that you need to talk with your customers more,” he said.
“It’s hard to communicate a lot of times with your customers because we’re all afraid of getting a ‘no.’ You have to talk to them and be brutally honest.”
Love selling — or get out
Cuban said the single most important skill for a founder is a passion for sales.
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“If you are a founder of a company and you don’t absolutely love to sell your product or service, you’re in the wrong business,” he said.
“If you don’t think you’re doing your neighbors, customers, and prospects a favor by telling them about your product or service, you’re in the wrong business.”
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Don’t give up on capitalism — AI will strengthen it
Cuban pushed back against what he sees as growing skepticism of capitalism.
“I hate it,” he said.
“The reason I’ve done Shark Tank for so many years is because I believe the American dream is alive and well. And AI is going to help that.”
“There are no stupid questions with AI,” he said, describing AI as “like having every professor I’ve ever had, or heard of, or ever existed, available to me.”
Use AI to stress-test your company
Cuban urged founders to experiment with AI not just for productivity but for competitive insights.
“From a business perspective, I’m a believer that every company should know how someone will kick their ass,” he said.
“What better question to ask than: Here’s my company and website, and ask, how would a competitor hurt my business? Don’t back down from these scenarios.”
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Protect your intellectual property
Looking ahead, Cuban predicted a world of customized AI models, but warned founders not to give away their best ideas.
“There’s going to be millions of models and there’s a chance that you have your own AI model that you make available to your customers,” he said.
“If you have intellectual property, do not just post it on the internet. You want to be able to protect that.”
