Kevin O’Leary urges entrepreneurs to cut losses and stop funding failing startups
Billionaire investor Kevin O’Leary warned startup founders on X that persisting with a losing venture and throwing more money at it is the biggest mistake they can make.
Kevin O’Leary, the Canadian billionaire and former Shark Tank panelist, used his X account to caution startup founders against continuing to fund projects that are not working. He described the refusal to admit failure as the most costly error an entrepreneur can make, arguing that more money will not turn a bad concept into a good one. O’Leary highlighted that about 80% of startups fail, urging founders to embrace the loss, extract lessons, and shift focus.
He also placed his remarks alongside recent advice from other prominent investors, such as Paul Graham, Brian Armstrong, and Jeff Bezos, who each stress realistic benchmarks, tackling hard problems, and gaining experience before launching a venture. The overall message stresses pragmatic decision-making over stubborn persistence.
Why it matters
The advice highlights a common pitfall for new businesses, encouraging smarter capital use and reducing wasted investment.
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