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'It will be the best time in the history of mankind to ever start a business': Billionaire Mark Cuban explains why startups don't need to raise VC money in the coronavirus era

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  • Mark Cuban said the period after the country reopens will be "the best time in the history of mankind" to start a business, on a recent episode of "The Twenty Minute VC" podcast.
  • The billionaire investor predicts that people will return to their normal lives searching for new products and services to break up the boredom.
  • People who start a business in these times shouldn't be concerned with raising venture capital, and should focus instead on building a great product.
  • Visit Business Insider's homepage for more stories.

A rash of layoffs at startups has affected more than 30,000 people since the recession brought on by the coronavirus crisis nearly wiped out their employers' businesses.

The good news for those individuals with an entrepreneurial bent, says Mark Cuban, is that now is an opportune moment to start their own company.

As the country starts to reopen, the business magnate predicts, people will return to their normal lives hungry for new products and services, as he told Harry Stebbings on a recent episode of "The Twenty Minute VC" podcast.

"It will be the best time in the history of mankind to ever start a business, because there are no rules," Cuban said.

People are stuck at home, bored of their routines, Cuban figured. The enforced monotony creates an appetite for something new.

"If you're able to come up with an idea, now's the time to do it. Now's the time not to hesitate, and particularly if you lost your job or you find yourself being furloughed. What better time? Everybody's at home, and the minute when everybody walks out the door, everybody's going to be looking for something new," Cuban told Stebbings.

"If they see something new, something different, and something exciting, then they're going to glom onto that. There's going to be some amazing world-class companies created that just change the game."

Mark Cuban's advice to founders starting a business in these times

Cuban is one of the wealthiest people in America, with an estimated net worth of $4.3 billion, according to Forbes. He's earned his fortune through a lifetime of business deals, including the $5.7 billion sale of his streaming site Broadcast.com, his ownership of the Dallas Mavericks, and investments made on ABC's show "Shark Tank."

mark cuban

He said on the podcast that businesses should not be concerned with raising outside funds in a recession. A company might shut down if it runs out of money, but it won't run out of money so long as the business has the right minds working on the right product or service.

If "you don't have enough customers, it's not just because you don't have enough money — because the best products kind of sell themselves, or are easy for you to sell," Cuban said. "So if you can't find a way to sell it, it ain't going to be sold, and it's not about raising more money and it's not about even the economy, especially now."

Instead of piles of cash, "sweat equity is always going to be what you need more than anything else," Cuban said.

You can listen to Mark Cuban's full remarks on "The Twenty Minute VC."

SEE ALSO: 5 reasons to start a company in a recession, according to Paul Graham, who founded Silicon Valley's most successful startup factory

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