Mark Cuban is one of the most famous and influential billionaire entrepreneurs.
On the popular ABC TV show, Shark Tank, many entrepreneurs and startups hope and dream to be drawn to their idea and invest in their project.
His success and love for businesses with great potential go far beyond the simple realm of financial circles. He’s one of the faces of the NBA, almost in the same way as star players. Cuban is the owner of the Dallas Mavericks, an NBA franchise that has completely transformed him.
He is an exemplary businessman that many young people would like to emulate. His ambition to disrupt the pharmaceutical industry by lowering prices has increased his notoriety, so that tweets calling for him to run for president in 2024 are so numerous and frequent.
‘I’m dropping my investment in Shark Tank Investments’
But like many investors, the past few months have been tough for Cuba. Uncertainty about growth in the wake of the Federal Reserve’s aggressive rate hike and inflation at a 40-year high looms over the horizon, causing jitters in the markets.
In this context, Cuban just admitted that he has incurred losses on his portfolio of companies he has invested in since his participation in Shark Tank. It all started with a tweet featuring an article from CNBC.
“Mark Cuban invested nearly $20 million in 85 startups in ‘Shark Tank,’ and took a net loss on all of these deals combined, the tweet was quoted as saying by CNBC. I got beaten up,” Cuban laughed.
Cuban replied to the tweet without trying to hijack the conversation.
“Spark an interesting discussion,” the 63-year-old businessman commented on Twitter on July 23. He admitted, “On a cash basis, I’m checking my shark tank investment,” without explaining the amount of his losses.
He then added, “But this does not include private ratings of operating companies. What are the majority. I am not a fan of the ‘market label’ of the games of PE/VC companies you play. Should illiquid ratings count?”
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Cuban was referring to private equity, or PE, and venture capital, or VC.
To help someone or send a message
If he admits that he is at a loss if we stick to the cash scale or what is liquidated, the investor clarifies that the situation is not the same if we consider the new fundraising of companies in his portfolio. Because a startup’s ability to raise money from investors on its own terms without difficulty increases its valuation.
Cuban argued, “If I add valuations based on the recent increase, I’m doing great. But that’s not money in my pocket. Its potential. Hopefully, raising money will lead to a further rise.”
But he acknowledges that “nevertheless. IMHO [in my humble opinion]If you can’t spend it, it’s not a financial gain.”
He concludes by giving the philosophy behind his investment in the Shark Tank Show. He explains for example that sometimes his investments are motivated by the desire to send a message or help someone, not necessarily by the temptation to earn.
“And I’m good at it with my Shark Tank companies. I’m not bidding for the best investments,” Cuban said. “And I don’t always invest because I think I’m going to make money. Sometimes my trades are just to help someone or send a message.”
Cuban participated in 111 episodes of Shark Tank and struck 85 deals with a total investment of $19.85 million, according to Sharkalytics. His largest single investment was in Ten Thirty One Production where he invested $2 million for 20% of the stock.
Overall, Cuba invested an average of $233,529 for an average participation of 23% in the equity of the companies involved.
You can find the full list of companies that Cubans have invested in, through MCC (Marc Cuban Companies), here. Given this list, his investments are very diverse: for example, there is a tattoo company, a bot company, non-fungible token companies (NFTs), etc.
Cuban recently found himself embroiled in the bankruptcy of crypto lender Voyager Digital with whom the Dallas Mavericks signed a partnership, one of whose missions is to promote cryptocurrency.
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