The tech economy is in the midst of a bubble, but it involves private valuations rather than the stock markets, billionaire entrepreneur and investor Mark Cuban told a conference of entrepreneurs at the Chicago Theatre on Tuesday.
“Is there a tech bubble of private company valuations? Of course,” Cuban, owner of the NBA’s Dallas Mavericks and a star on ABC’s “Shark Tank,” told several hundred attendees at the iConic conference, sponsored by Inc. Magazine and CNBC. “If it bursts, will it be bad for the investors, the people involved with those companies? They’re screwed, while the economy may not be as negatively impacted.”
But Cuban said his outlook for startups remains bullish, calling runaway valuations a problem that tends to be localized to California startups.
“There’s people raising money because they can,” he said. “That’s the Silicon Valley model. But for the other 98 percent of the country, that’s not the model.”
In a talk sprinkled with colorful language — one of his trademarks — Cuban urged entrepreneurs to focus on hard work rather than on finding mentors.
“Don’t ask for help,” he said. “Go out there and ‘ready, fire, aim.’ Get off your … ass and work. Do it.”
Asked hypothetically what his priorities would be if elected to public office, Cuban said addressing income inequality would be the first job he would tackle.
“It’s creating a risk factor that hurts everybody,” he said. “If you’re in business, and you’re worried about losing everything because of a riot, that’s an unquantifiable risk.”
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Perhaps surprisingly, Cuban said entrepreneurs don’t concern themselves chiefly with taxes and government regulations.
“You all are entrepreneurs,” he said, looking into the audience. “Did you all think about tax rates when you decided to become entrepreneurs? No.”
He said one of the most gratifying things about being on “Shark Tank” is that it is popular family viewing. He said he likes that kids are learning the ins and outs of starting businesses.
“When your 11-year-old starts talking about revenue, parents get excited,” he said. “It’s the new-age lemonade stand.”
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