Why Daymond John From Shark Tank Nearly Went Bankrupt (And What You Should Learn From It)

The $6 Billion Rise From a $40 Budget

Before becoming a household name on Shark Tank with a net worth of $350 million, Daymond John started with almost nothing—just $40 to launch FUBU, his urban clothing empire that eventually became a $6 billion fashion powerhouse. His story screams success on the surface. But behind those investor deals and polished TV moments lies a painful truth: this titan of business nearly self-destructed multiple times.

The Most Dangerous Business Mistake: Abandoning People

In a candid conversation, the 55-year-old founder opened up about the worst guidance he ever received—and it wasn’t actually specific advice. It was an attitude. “Someone told me if they had extra money they could afford to lose, then it’s fine,” John explained. “But I completely disagree. When you start burning bridges and abandoning people just because you think you can, that’s toxic.”

This hits harder than most business lessons because it touches on something beyond spreadsheets. Whether you’re wealthy or struggling, how you treat people matters. Daymond John from Shark Tank has seen too many founders learn this lesson the hard way—usually when it’s too late.

The Financial Blindspot That Almost Destroyed Everything

Here’s where John gets brutally honest: he went bankrupt three times. Two of those moments were when he had zero dollars. The third? When he actually had money in his account.

“I didn’t understand finances at all,” John admitted. “Coming up without generational wealth, I had no one teaching me. My information was limited and outdated.” Growing up before the internet era meant no instant access to market data or financial education. By the time he could learn, he’d already made catastrophic mistakes.

The breakthrough came only after he decided to actually learn financial intelligence—understanding cash flow, investment strategy, and money management. Without it, even FUBU’s explosive growth could have been wasted.

Why 65% of Winners Go Broke (And It’s Not What You Think)

John doesn’t blame athletes or lottery winners who end up bankrupt within three years. Most people will point and say, “They blew it.” John disagrees sharply.

“These are the most physically gifted people on the planet. They competed against millions and won. But nobody taught them financial intelligence. That’s not a character flaw—it’s a knowledge gap,” he said. “You can’t know what you don’t know.”

This realization became the fuel for his mission. If 65% of high-earners crash and burn financially, the problem isn’t stupidity. It’s a broken system that doesn’t teach money management.

Building the Next Generation: Financial Education as Urgency

Daymond John from Shark Tank isn’t just reminiscing anymore. He launched “Little Daymond Learns to Earn” to change how schools teach money. His vision is bigger than one book or program—it’s about forcing systemic change across education systems, getting banks and other celebrities involved, and making financial intelligence as common as reading in American schools.

The fact that someone worth $350 million is this obsessed with teaching kids basic money management says everything. He’s seen firsthand how the absence of this knowledge destroys careers, relationships, and potential.

The Real Lesson

Success isn’t just about grinding harder or having a brilliant idea. Daymond John’s journey proves that financial intelligence separates sustainable wealth from spectacular crashes. And unlike talent or luck, financial intelligence can be learned by anyone, anytime—if the education system finally decides to teach it.