Mark Cuban Reveals the No. 1 Way to Start a Business That Makes You a Billionaire Investors aren't always the surest path to success.

By Amanda Breen Edited by Jessica Thomas

Christopher Willard | Getty Images

For many entrepreneurs, raising significant funds from investors sounds like a dream come true.

But Shark Tank judge and billionaire businessman Mark Cuban says outside capital isn't the panacea new founders think it is. In fact, he suggested a completely different approach on a SXSW panel last month, CNBC reported: Launch "with as little money as possible."

Related: What Mark Cuban Learned From His 6 Biggest Failures | Entrepreneur

Although Cuban has offered nearly $20 million in 85 deals across 111 episodes of Shark Tank, per fan-run website Sharkalytics, he cautions against jumping straight to fundraising.

"People get this mindset that, 'OK, I'm starting a business. Now, I've got to go raise money,'" Cuban explained, adding: "Just remember raising money, whether it's from me, on Shark Tank [or] anywhere, that's an obligation. There's somebody who wants that money back."

Cuban sold his first business, computer systems company MicroSolutions, to CompuServe for $6 million in 1990, and four years later, invested in, then purchased, the small startup that became Broadcast.com — and sold to Yahoo! for $5.7 billion in 1999, per CNBC.

Related: How Mark Cuban 'Gets Shit Done' and Stays Productive | Entrepreneur

Today, Cuban boasts a net worth of $6.47 billion, per the Bloomberg Billionaires Index.

"If you look at people with a B next to their name, it's because they own all that equity in their company," Cuban said.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

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