MARK CUBAN: If I Was Responsible For Box’s Bad Numbers ‘I Would Combust’

MARK CUBAN: If I Was Responsible For Box’s Bad Numbers ‘I Would Combust’

JAY YAROW TECH  MAR. 25, 2014, 9:25 PM

Enterprise-focused online storage company Box filed for an IPO last night.

Box might exist if not for Mark Cuban,according to Box CEO Aaron Levie.

When he was still a student at USC in 2005, Levie emailed Cuban to tell him about his company. Cuban liked the idea and offered to make a $350,000 seed investment. Levie took the money.

A year after the investment, Cuban wanted out of the company.

Levie wanted to give away a gigabyte of storage to get as many users as possible. He would charge when they went above that limit. He feared that Google or Yahoo was going to come out with a rival product that would crush Box.

Cuban disagreed with this plan. He wanted Box to keep charging customers. Levie told design agency Zurb, “Mark didn’t like that as an idea because it meant that we would need to go on and take more funding and subsidize the user base initially through venture capital. He liked the neat and tidiness of a very linear, understandable business model.”

When Levie raised his next round of funding, he used a portion of the money to buy back Cuban’s stake.

By ditching his investment so early, Cuban missed out on a giant windfall. Box’s latest valuation has the company at $2 billion. As a seed investor, Cuban was poised to have a big return.

Cuban talked about the Box IPO on Twitter last night. And he hinted that he stands by his decision to get out of the company.

Box’s S-1 revealed that it generated $124 million in revenue last year while racking up losses of $168 million. Cuban says that if he were responsible for those numbers he would “combust”:

I wish @BoxHQ the best but I would combust if 8 years in I was responsible for $169mm in losses against less revs.I hope IPO gets them going

— Mark Cuban (@mcuban) March 25, 2014

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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