[driverdan]

> Mr. Cuban put in $250,000 and got a nearly one-third stake in the fledgling firm.

Why would someone give up a third of their company for $250k? That seems crazy to me.

[gkoberger]

Less crazy when it's 2005 and you're a college student with no money, and you look at Cuban as a business partner rather than an investor.

[austenallred]

Because giving up 1/3 of a company that will make you rich is better than your company failing.

You couldn't always get a $5 million valuation for your pre-revenue, pre-traction product. When it comes down to it, you have to take what you can get.

[anigbrowl]

Because you don't have much capital or revenue when you're just starting out, you take what you can get. If you demand a minimum of, say, $5 million for such a stake and nobody is willing to give it to you, what then? Your unshakeable self-belief isn't going to magically make payroll or pay for your overhead or purchase That Thing You Need.

[justizin]

Clearly, you are not a fan of "Shark Tank" ;)

[AndrewKemendo]

1/3 * $0 = $0