"I don't invest in rich kids" — When Shark Tank's Barbara Corcoran made her feelings clear about privileged entrepreneurs

Barbara Corcoran, a longtime investor on Shark Tank, has been vocal about her investment preferences when it comes to entrepreneurs from different economic backgrounds. In an interview with Business Insider on December 18, 2018, she explained her stance on why she tends to avoid investing in wealthy entrepreneurs.

"It sounds harsh— I don't invest in rich kids— which isn't really true but almost true, because rich kids on Shark Tank come with a couple of attributes that disturb me," she clarified.

Corcoran outlined several reasons behind this perspective, emphasizing differences in work experience, resilience, and motivation between individuals from privileged and underprivileged backgrounds.

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Shark Tank Barbara Corcoran’s perspective on investing in privileged vs. underprivileged entrepreneurs

Differences in work experience

Barbara Corcoran pointed out that entrepreneurs from wealthier families often gain access to prestigious internships and job opportunities through their connections.

"They've had the right jobs because they had the right contacts, so they had the right apprenticeships in different right companies in their summer months when [they were] teenagers," she stated.

She contrasted this with individuals from less privileged backgrounds, who are more likely to work in service jobs, where they develop firsthand experience dealing with customers and managing real-world challenges.

According to Barbara, the skills gained through these different experiences impact an entrepreneur's ability to handle setbacks. She noted that entrepreneurs who had to work hard from a young age are often more prepared to navigate the difficulties of running a business.

"Poor kids are usually waiting tables and scrapping, dealing with customers, spilling coffee, and getting shouted at— a little different," she explained.

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Mindset and attitude toward business

Another reason Corcoran prefers investing in underprivileged entrepreneurs is the mindset that often accompanies formal business education. She observed that many wealthy entrepreneurs on Shark Tank have attended top business schools, which can lead to a sense of confidence that she finds counterproductive.

"What comes with going to the finest schools, especially business schools, is a certain attitude that they know it. That's a dangerous attribute to have in anything when you're starting out in anything." she said.

In contrast, Barbara argued that entrepreneurs from disadvantaged backgrounds tend to learn business through experience rather than observation. The Shark Tank investor highlighted that these individuals often have firsthand knowledge of financial struggles and a stronger appreciation for financial discipline.

"Whereas poor kids tend to have had hardship, they've had to be a player earlier, they've had to contribute to the family, they've seen their parents struggle, they know the power of [a] buck," she explained.

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The role of struggle in entrepreneurial success

Corcoran also emphasized the role of personal hardship in driving entrepreneurial success. She noted that individuals with something to prove— whether due to financial struggles or personal setbacks— often demonstrate a higher level of determination.

"An injured poor kid is for me a guarantee that I'm gonna make money if he's got the ego to prove somebody else wrong," she said.

She shared a personal example of how adversity fueled her career, explaining that a former business partner had doubted her abilities. She emphasized that this skepticism became a driving force for her success, as she was determined to prove him wrong.

Barbara suggested that this type of internal motivation is more commonly found in entrepreneurs from less privileged backgrounds.

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