I Made A Good Living On Flops

I just finished reading Mark Cuban’s analysis of his investments on Shark Tank. He is thinking about leaving the show because many of the deals he financed were a waste of time. I feel the same way about many of the companies I represented over the years. I got caught up in the enthusiasm from the innovators. They were great at inventing new products, services and shows, but they were clueless on how to execute a successful business.

I was so jealous when the breathalyzer came out on Shark Tank. I wanted to be the PR agency representing them. They were like rock stars at CES a few months later. They managed to fizz out before I had the chance to pitch them. Or what about the billions of dollars Magic Leap managed to screw out of Google and others? You wonder who is okaying these investments and who is responsible for checking them out. I knew something was phony in Plantation, FL.

Hasn’t Elizabeth Holmes taught us anything? Now there is a new scammer out there. Business Week says. “Trevor Milton looked like the next Elon Musk—and may end up the next Elizabeth Holmes. As the first of his several trials gets under way, the people who exposed him reveal how it all went down.Read in Bloomberg Businessweek: https://apple.news/A8sjmWmR_R2yqKaNWL3H3NQ

I apologize if I am inferring that many of the entrepreneurs I worked with were scammers. Scammers is a strong word for many of them but I can honestly say most of them had no conscience. They didn’t lose sleep over losing millions of dollars, or perhaps spending money on nonsense when they needed that dough to survive.

I always had the feeling that many of these start ups were designed to pick the pockets of the rich. Eliot and I are not rich rich but we have invested in a few projects that went south. Like Mark, we did it for the fun and it didn’t hurt us financially. However, we don’t get the same “rush” from being one of the investors anymore. Having said that, there are several projects that we were considering before this new attitude came about so I’m not sure which way we will go. Hahaha.

Mark Cuban says 25% of his ‘Shark Tank’ deals are flops: ‘What the hell was I thinking?’

Published Mon, Sep 26 20221:29 PM EDT


Tom Huddleston Jr.

Mark Cuban, entrepreneur and owner of the Dallas Mavericks, speaks at the WSJTECH live conference in Laguna Beach, California, October 21, 2019.

Mark Cuban, entrepreneur and owner of the Dallas.

After 13 seasons on ABC’s “Shark Tank,” Mark Cuban estimates that he’s had about as many hits as misses.

Some of his on-screen deals have worked out great, he says. Others, not so much. Such is the risk of investing. But even when it comes to the ones that eventually left him scratching his own head, Cuban tells CNBC Make It that he has “no regrets.”By Cuban’s own estimation, roughly one in four of his “Shark Tank” deals “have done really well or crushed it,” he told a local Denver ABC affiliate on Friday.

“Fifty percent … have been good and continue to go on, and 25% where I just think to myself: ‘What the hell was I thinking?’”One notable example: Cuban has highlighted the Breathometer, billed as “the world’s first smartphone breathalyzer,” as his worst “Shark Tank” investment to date. Cuban said he lost roughly $500,000 on the deal, after investing in the business in 2013.“That was my biggest beating.”

In total, the billionaire investor has struck more than 200 on-screen deals worth more than $61 million in his time on the show, according to a recent online estimate. On Monday, Cuban told Forbes that the real-life figure is closer to $29 million: Not all of the deals depicted on the show make it all the way to closing.Cuban says his “Shark Tank” deals aren’t always solely about bringing in big financial returns. “I’m good with that with my ‘Shark Tank’ companies,”

Cuban wrote on Twitter in July. “I don’t do the show to get the best investments. And I don’t always invest because I think I’ll make money. Sometimes my deals are purely to help someone or send a message. That’s why he doesn’t seem to mind not yet being in the black when it comes to his total investments on the show. In July, Cuban told the “Full Send” podcast that he’s taken a net loss on all of his “Shark Tank” investments so far. He later clarified that he meant “on a cash basis,” only accounting for the investments he’s already exited.

“I haven’t gotten out more than I have put in. But that doesn’t account for all the ongoing, operating businesses and their valuations,” Cuban told CNBC Make It at the time. Deals that flop are an inevitability of investing, according to fellow “Shark Tank” star Kevin O’Leary. “You make 10 investments, you get two to three huge hits. And it pays for the other seven [failed investments],” O’Leary told CNBC Make It last month.

Still, Cuban says he’s beginning to think about when he should step away from “Shark Tank” to focus on his own ventures, including the new online pharmacy Cost Plus Drugs.“Part of me wants to quit,” Cuban told Forbeson Monday.The investor didn’t offer any timeline for when he might depart the popular program, but said the show could likely weather his exit: “They’ll survive fine without me.”Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”

1 thought on “I Made A Good Living On Flops

  1. I assumed Mark just liked the TV exposure I’m not at all surprised by the weak investments They were looking to make good television not good money

    Sent from my iPhone


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