Mark Cuban isn’t pleased that you’ve raised money.”If you believe the accomplishment is raising money first, we’re most likely not gon na get along,”said Cuban in an Extra Crunch Live interview. “If your orientation is’I got to raise the cash first,’you don’t actually have a company yet, and you truly have not achieved anything. […] Sweat equity is the best equity. “We also got his take on today’s economy, the country’s instructions and his notes on what startups must do to survive in the new world. Gladly, as we had an hour to chat, we managed to cover a lot of ground. The complete discussion(YouTube) is after the dive, and we have actually excerpted a variety of quotes for your perusal. But up top we wished to share Cuban’s notes concerning which companies need to accept Income Defense Program (PPP)funds from the Small company Administration. The matter ended up being a hot-button problem in and around Silicon Valley, where initial debate focused around which startups could access the cash. After it became clear the first installation of PPP funds wasn’t going to last, whether startups need to access to the capital at all became a question. Some venture-backed business even decided to return their PPP check. According to Cuban, when PPP was initially created, the marketplace’s” point of view was that there ‘d be plenty of money for everyone. You know, individuals didn’t really want to do the mathematics. “Cuban said that if there was $350 billion in the pot and one million small companies, the fund would have exercised to $ 350,000 apiece. “Well guess what,” he said, “there are 30 million business, [and] like 20 of them are independent contractors.”
Once you did the calculations again with that lots of companies qualified for PPP funds, you could tell that the cash wasn’t going to last. So Cuban informed companies that he’s invested in where he has sway to “either not apply or simply pay it back instantly.” Why? “For the improvement of the nation and the economy,” he stated, adding that “if you do have access to capital” or “your organisation isn’t considerably impacted [then] let’s leave [the PPP money] for the people who require it one of the most.”
As noted, the complete video is listed below ( you can sign up with Additional Crunch here!), together with Cuban’s notes on startup recommendations during the pandemic, American 2.0 (and Marc Andreessen’s essay), AI, pre-seed companies, his future in politics and how to pitch him.
Mark Cuban on the record
How he’s encouraging portfolio companies during the pandemic:
So foremost and first, communicate. Second is be honest. Third is be transparent. And fourth is be authentic. Due to the fact that everybody is nervous. Everybody is horrified at a certain level. You simply have to recognize that. Individuals are going to need that honesty from you and individuals are going to desire communications from you. That’s been the main thing around what these business need to do.
Regarding cutting costs: Every business is various. On the smallest ones, they’re already grinding, and it’s usually dependent on the creator. If at all possible, I have actually really tried to encourage people to keep all their employees on. That there’s gon na be a great deal of modification which’s going to develop a great deal of chance. If you can hold on to your employees and push forward in any method, shape, or form, you may have an opportunity.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.