Credit: CNBC
Highlights
- Mark Cuban has made around 200 deals in his 13 year tenure on Shark Tank.
- Most of his deals have been in partnerships with Robert Herjavec, who joined him in most.
- Mark Cuban has invested about $20 million in various businesses.
Every investor on Shark Tank brings their unique personas on the show. Their witty replies and honest feedback help the viewers stay dedicated, with many following the show just to watch their favorite Sharks. This is why we will cover a crucial aspect of ‘Mark Cuban Shark Tank.’
If he likes a pitch, he’ll follow his instincts and propose the most massive valuation. The best example of this is Thirty One Productions. On the other hand, if he’s unsure or doesn’t like a pitch, he’ll not think twice before opting out of it. Track Days is the perfect example of this. But here, we’ll focus on his most profitable deals.
Below is a curated list of Mark Cuban’s best Shark Tank investments:
1. Simple Sugars
18-year-old Lani Lazzari went to the judges pitching for her homemade, sugar-based scrubs – Simple Sugars. This classic Mark Cuban Shark Tank investment proved that taking risks is an indispensable aspect of a successful businessman’s journey.
Lani started making the product when she was just 11 after her mom asked her to prepare a Christmas gift independently. Facing sensitive skin issues, she envisioned developing a natural product that solves the problem.
After receiving a favorable response from friends and family, she enrolled in Pittsburgh’s 2008 Powerlink Protégé program. Acquiring formal training, she went on to make sales worth $80K.
While all the Sharks were impressed with her robust business understanding and confident demeanor, no one except Mark made an offer. The deal was locked at $100K for 33% equity of the company.
How was this a successful investment?
After its Shark Tank appearance in 2012, Simple Sugars received bulk orders, and its revenue went up to $1 million in a short while. By 2014, it made $3 million in sales. Motivated by the success, Lani even started a new venture called ‘Smooth for Men,’ which was again a hit.
The latest update about Simple Sugars is that it will make an annual revenue of $6 million by 2024. Further, the lifetime sales reached up to $40 million.
2. Rugged Maniac
Rugged Maniac was brought to the Sharks by Bradford Scudder and Rob Dickens. They sought $1 million for a 25% investment in this 5K obstacle course spread over 20 cities nationwide.
The entrepreneurs elaborated further that these events were open for people of different ages, genders, and sizes. The challenging running course involved 25 obstacles, including climbing towers, water slides, fire, and mud tunnels.
During further discussions with the Sharks, Rob and Bradford revealed they had invested another $1 million in ‘The Bull Run,’ a complementary offering. The Sharks showed their interest, but the entrepreneurs said that for a 10% share of the other company, the investors would have to pay an extra $2 million.
Robert was the first to propose an offer of $1.5 million for 25% equity of both companies combined. After this, Mark displayed his business acumen by influencing Robert’s offer with his words. He said that the entrepreneur-duo had overvalued their business, and their prime focus would only be on ‘The Bull Run.’
Hearing this, Robert admitted that he was skeptical about his earlier offer. Nevertheless, Kevin joined him, and they decided to be 50-50 partners for the $1.5 million. But they demanded to be given one-third of the business.
After this, Mark offered $1.5 million to 25% of both companies. With two offers in hand, Rob and Bradford had a small discussion. The final deal was sealed with Mark for $1.75 million for 25% equity of both the businesses combined.
How did the deal work out in Mark’s favor?
In 2015, Rugged Maniac founders also developed another similar race named ‘The Costume Dash 5K.’
After its Shark Tank appearance, the event expanded to Canada. Additionally, its sales significantly jumped from $4.2 million to $10.5 million.
3. Prep Expert
Shaan Patel, a budding entrepreneur, approached the judges with Prep Expert. The investment sought for this online education company was $250K for 10% equity.
He claimed that he was one of the few 3000 students to have obtained a perfect score on the SATs. Aiming to help new students clear their SAT, he now wanted to share his secrets with others and flourish higher with his business.
Initially, he conducted the course in person on a six-week schedule in Las Vegas. After a continuous run of four years, he had earned $1.2 million in sales by 2016. The charges for the offline course were $199, and now Shaan wanted to go online.
During the negotiations, Kevin asked him about his customer acquisitions, but Shaan didn’t have a suitable answer. Daymond, Robert, and Lori stepped out of the deal as they were not confident of its success. Kevin, too, refrained from making a deal as he felt the entrepreneur’s approach was not proactive enough.
The only Shark who showed an interest was Mark. He proposed $250K in exchange for 20% of the company. Shaan made counteroffers at $250K for 15% equity and $300K for 20% equity. But he didn’t accept any of it. So, the deal was then finalized at the original offer of $250K for a 20% equity stake.
How was this deal a success?
The Prep Expert deal was a Mark Cuban Shark Tank masterstroke as its revenue increased drastically, and the employee count increased from 10 to 50.
The latest update about Prep Expert is that its revenue figure reached $20 million.
In a Nutshell
One of the wealthiest Sharks, time and again, Mark Cuban has proved his caliber as a business veteran who knows how to assess and target the most profitable businesses. The reason why audiences love him more is because he never shies away from exhibiting his genuine emotions.
‘Mark Cuban Shark Tank’ has become the buzzword among the viewers due to moments like investing in a cosmetic brand (far from his tech expertise) and believing in the novice business idea of a college student (as in Prep Expert).
References
- How I turned my side hustle into a business that’s made $20 million—and got Mark Cuban to invest, CNBC, Shaan Patel
- Lani Lazzari, Wikipedia
- Rugged Maniac, Wikipedia
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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