SAN FRANCISCO – When it comes to making startup investments, it seems like Mark Cuban is everywhere. In addition to owning the Dallas Mavericks, Cuban is involved with a number of startups, and spends time on a panel of investors on “Shark Tank.” But how is a startup founder supposed to convince Cuban to part with his money?
“You should know what companies I’m invested in. You should know why I’m invested in those companies, what value you’re going to bring to me, and why your company is great,” he said in an interview at today’s TechCrunch Disrupt conference in San Francisco.
Cuban said that he has no patience for entrepreneurs calling out how large the total market for their company is, either. While he understands the idea of explaining that a company can make millions even if it reaches a small portion of the total market, he finds it lazy and will probably not invest.
So, what does the bombastic and straight-talking sports owner like to hear from entrepreneurs?
“Tell me what your core competency is, tell me why you’re great at it, tell me why it’s protectable, tell me how it will scale,” he said.
He also said that he’s primarily focused on investing in companies that can be sustainable, even if they don’t get an exit.
“I want to know — not what your exit is going to be. I want to know how you’re going to be a successful company, in case you can’t get an exit,” he said.
For those who want to get a better idea of what Cuban is interested in, check out his portfolio here.