In a 2017 Q&A session with Oxford Union college students, Mark Cuban opened up about one of his biggest regrets on Shark Tank – and he did not maintain again. When requested about his dedication to the businesses he invests in, Cuban emphasised that he can be there “til loss of life do us half” so long as the founders preserve grinding.
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Of his 71 investments on the present, about 12-15 are thriving, whereas three have exited (although, as he joked, “none actually thrilling”). Then it received concrete: At the underside of his portfolio, Cuban revealed, “10 out of 71 … three have gone out of enterprise and 7 have gone out of enterprise however aren’t good sufficient to know.” The crowd laughed, however Cuban did not let the second slip by with out giving an instance of a deal that “nonetheless drives him loopy.”
The funding you have been speaking about? A chocolate-covered pretzel firm. Although he did not title it within the Q&A, the corporate was The Painted Pretzel, based by Raven Thomas. Cuban had invested $100,000 within the firm for a 25% stake after being impressed by Thomas’ ardour and the product’s potential. With Shark Tank’s enormous PR increase, gross sales skyrocketed 1,500% after the episode – you’d assume it was the beginning of one thing huge. But behind the scenes, issues rapidly unraveled.
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The downside? Free delivery. Cuban defined that whereas the pretzels value about $14, they have been promoting for $29.95, which ought to have left an honest $15 revenue margin. But the delivery? It was $16 a bit. That “free delivery” profit that was supposed to draw extra prospects ate into the revenue. Cuban described it as feeling like watching the cash “disappear,” including, “The cash goes like this,” motioning to point out how rapidly it bled out. And it wasn’t nearly delivery. The firm has reportedly confronted complaints about delays, including customer support points to the pile.
Reflecting on the deal, Cuban admitted, “I in all probability should not have (invested),” suggesting it was partly to show a degree to his fellow Sharks, significantly Kevin O’Leary, when he was new to the present. “It’s not a lie, to today I nonetheless obtain emails…” he trailed off, trying visibly annoyed.
