Sharks Mark Cuban and Rashaun Williams Secrets to Raising Capital

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When I interviewed billionaire investor Mark Cuban and venture capitalist Rashaun Williams — both speakers at the upcoming Clover x Shark Tank Summit — they didn’t hold back on what it really takes to raise money and build a company that can stand the test of time. Both have seen countless entrepreneurs succeed — and just as many fail — and their advice is rooted in decades of experience.

SHARK TANK – ABCs Shark Tank stars Mark Cuban. (Christopher Willard/ABC via Getty Images)MARK CUBAN

ABC via Getty Images

For both, the message was clear: start with customers, prepare long before you pitch an investor, and keep your focus where it matters most — on sales and profitability.

Start Small, Prove the Demand

Cuban says the biggest mistake founders make is chasing funding before proving anyone actually wants their product.

“I truly believe it’s always better to have customers before you raise money,” he told me. “Once you do, it gets easier.”

He’s a firm believer in sweat equity — starting small, even part time, to test your idea with real customers before seeking outside funding. If you don’t have access to traditional capital, he suggests a more personal approach: “Cut back on personal expenses and save what you need.”

But before you take anyone’s money, Cuban cautions, make sure you know exactly what comes with it. “Understand the obligations you have to the people providing you with capital.”

Too many founders, he added, miss the most important part of building a business. “They worry about everything but sales and profits.”

The Three Barriers To Capital

Williams distills the funding challenge into three words: net worth, network, and traction.

“Write that down, tattoo it on your arm and save yourself five years of wasting time,” he said.

He explained that early funding rarely comes from venture capital or private equity. More often, it’s a founder’s own savings, contributions from friends and family, or angel investors already in their network. “Venture capital is usually ‘growth’ capital, not ‘idea’ capital,” he said.

That’s why he believes in building connections well before you need them. And for those without traditional networks or resources, Williams points to other options. “Crowdfunding and customer prepayments — I love those two options if you don’t have the traditional means,” he said.

Laying The Groundwork Before Asking For Money

Williams offered a must-do list for founders before raising a dime:

• Form your company and assemble a capable team.
• Develop at least a minimum viable product.
• Put some of your own money into the venture.
• Get out of what he calls the “idea maze.”
• Learn how investors value pre-revenue companies.
• Understand market terms for early-stage rounds.
• List every way your business could fail in the next two years — and plan for each.
• Build a “brain trust” of experienced advisors.

In his view, most startups don’t fail because their ideas are bad, but because the foundation is too weak to support growth. “Lack of planning, poor financial literacy, and misalignment with market needs are the real killers,” he said.

Learn From People Who Have Done It

Both Cuban and Williams agree: the most successful entrepreneurs start with customers, prepare early, and keep profits at the forefront.

Williams adds that events where founders can learn from experienced entrepreneurs can be game-changing. “That’s why I love events like the Clover x Shark Tank Summit,” he told me. “It’s like the Super Bowl of entrepreneurship — the best athletes, the best sport, the biggest stage.”

Their bottom line: build something solid, get creative about finding the money to grow it, and never lose sight of the people who matter most — your customers.