Credit: Medium
Highlights
- Mark Cuban, one of the richest Sharks, debuted as a guest Shark in 2011.
- Mark has invested in various products for around 85 companies in Shark Tank.
- Scroll through to find out the biggest investment mistakes of Mark Cuban on Shark Tank.
What will your answer be if someone asks you to say a bit about ‘Mark Cuban Shark Tank?’ His brilliant one-liners? Or intense debates with fellow investors? Well, that’s right. Apart from that, his innate ability to spend on worthy products makes his personality stand out.
Mark Cuban debuted in the show in 2011. Since then, he has been presenting his smart business skills to the audience. To date, the Dallas Mavericks’ founder has invested around $29 million in 85 businesses on Shark Tank.
But have all Mark Cuban Shark Tank investments been successful? The answer is NO.
It’s a given that the world of business is a precarious affair. No matter how young or experienced you are, the results after investments cannot always be positive.
Here, we will dig into Mark Cuban’s biggest mistake in investing in Shark Tank.
Breathometer
Charles Michael Yim, a Silicon Valley veteran and founder of Breathometer, approached the Sharks seeking $250K for 10% equity in his company. The product was a smartphone breathalyzer, which he claimed could emerge as a life savior with its impressive alcohol detection abilities.
Presenting it as a better, modern-day version of the old, bulky breathalyzers, Charles pointed out the many exciting features and functionalities of the Breathometer. The device could be connected to your smartphone and thus help you keep your alcohol intake in control.
Each of the Sharks showed their interest and presented their offers. After a fierce round of negotiations, they decided to join hands and proposed a deal for $1 million at 30% equity.
But there was a catch! Charles stated that Mark would get the lion’s share, so discussions followed again between the two of them. The final deal then had Mark’s investment of $500K for 15% equity and the combined investment of the other four Sharks at $500K for 15%.
What happened after Shark Tank?
Although the deal followed through, Mark was the only Shark who put in the proposed amount. The company did decent business up until 2021. But the latest update about Breathometer is that the product is no longer available.
Have a look at how the Breathometer investment made Mark breathless.
In a 2022 podcast interview, Mark Cuban was asked about his ‘biggest loss’ on Shark Tank. He replied that it was for about a million dollars,’ for Breathometer.
Elaborating further on the details, Mark admitted that he really liked its concept, which is why he invested in the company. But after his Shark Tank appearance, the founder was always seen traveling to exotic locations like Bora Bora, Las Vegas, and Nectar Island and posting pictures of the same on Instagram.
When Mark confronted him regarding the same, he gave an excuse that it was all for ‘networking.’ And just like that, all his money was gone.
The Painted Pretzels
The Painted Pretzels, a company initiated by Raven Thomas, went to the Sharks seeking an investment of $100K. A stay-at-home mom, Raven prepared the delectable chocolate-covered pretzels in her kitchen and made sales of $60K in 2011.
Aspiring to take her business to new heights through things like leasing a commercial kitchen space, she pitched her idea to the Sharks. Kevin and Lori weren’t moved by the emotional appeal and held themselves back from investing.
Mark had a different opinion, though. He liked the company’s “heart and soul” and agreed to offer $100K for 25% equity, with the idea of selling her products in his sports arena and movie theaters.
What happened after Shark Tank?
Although the company consistently sold its products until 2023, it often received consumer complaints regarding delayed orders. The latest update, though, is that it is no longer in business.
Here’s why The Painted Pretzels is among other Mark Cuban Shark Tank Investment Mistake:
In one of his discussions regarding Shark Tank investments, Mark revealed one company that regretted investing in. It was none other than ‘The Painted Pretzels.’
Explaining further, he stated that this investment was one of his earliest on the show. Additionally, it was one of those companies that he felt ‘he shouldn’t have’ invested in. Just like any other product, it witnessed the Shark Tank effect and received bulk orders after its episode aired.
The cost per unit was $14, and she sold it for $29.95. During that time, Mark felt she would make a huge profit after the episode was telecast, which it did. But even after tons of sales, her cash figures went to a complete low. Baffled by this, Mark confronted the founder and was astonished to know what went wrong.
Apparently, she decided to offer free shipping so as to make the customers happy. The shipping cost was $16, whereas the profit margin was $15.
This is how a potentially successful business went into the dark, and Mark Cuban turned out to be wrong in analyzing its fate.
Bottomline
The Mark Cuban Shark Tank experiences, as outlined through Breathometer and The Painted Pretzels, indicate that even the most experienced business minds can make mistakes. These setbacks highlight the critical need for a reliable business strategy and management.
Eventually, they act as lessons in the unpredictable business arena, reminding both entrepreneurs and investors that success demands more than enthusiasm. One needs to be consistent in their execution and focus for ultimate success.
References
1. Mark Cuban Exiting ‘Shark Tank’ After Over 10 Years, Forbes, Antonio Pequeño IV
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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