Kevin O’Leary’s blunt advice to startup founders: Cut losses on failing businesses
Investor Kevin O’Leary has advised startup founders to accept failure early rather than continuing to invest in non-viable business models. He emphasizes that persistence in a flawed concept is a major mistake and that entrepreneurs should learn from losses to move forward.
Why it matters
It provides a pragmatic perspective on venture capital and entrepreneurial risk management, challenging the 'never give up' narrative.
Canadian billionaire and former Shark Tank investor Kevin O’Leary has delivered a sharp warning to startup founders, according to a report by Benzinga. O’Leary has urged the startup founders to recognise their failure early and avoid pouring more money into businesses that are not working. Sharing his advice on X, O’Leary said: “The worst mistake you can make as an entrepreneur is refusing to admit when something has failed.” O’Leary also cautioned that continued spending cannot turn an unsuccessful concept into a viable business. “Bad ideas do not become good ideas just because you keep throwing more money at them,” he wrote. Instead, he advised founders to embrace losses, learn from them, and move on. He added: “80% of startups fail.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in