Mark Cuban is one of the most famous and influential billionaire entrepreneurs.
In the hit TV show “Shark Tank” on ABC, many entrepreneurs and startups hope and dream that he will be attracted to their idea and invest in their project.
His success and his spearheading of businesses with great potential go beyond the simple confines of the financial world. He is one of the faces representing the NBA, akin to star players. Cuban is the owner of the Dallas Mavericks, an NBA franchise that he has completely transformed.
He is a model businessman that many young people want to follow. His ambition to disrupt the pharmaceutical industry by cutting prices further increased his notoriety, to the point that tweets calling for him to run for president in 2024 were numerous and repetitive.
‘I’m Disappointed With My Shark Tank Investment’
But like many investors, the past few months have been difficult for Cuban. Growth uncertainty follows Federal Reserve policy of aggressive rate hikes and inflationary at a 40-year high blurring the horizon, causing jitters in the market.
It is against this backdrop that Cuban admits that he has suffered losses in his portfolio of companies he has invested in since joining Shark Tank. It all started with a tweet featuring an article from CNBC.
“Mark Cuban invested nearly $20 million in 85 startups on ‘Shark Tank,’ and he made a net loss on all of those deals combined,” the tweet quoted CNBC. “I was defeated,” Cuban admitted with a laugh. “
Cuban responded to the tweet without attempting to interrupt the conversation.
“Gives an interesting discussion,” the 63-year-old businessman commented on Twitter on July 23. “On a cash basis, I’m reducing my shark tank investments,” he admitted. , but did not say how much his loss was.
He later added: “But that doesn’t include the private valuations of the operating companies. That’s for the most part. I’m not a fan of the ‘mark the market’ game that companies play. PE / VC play. Should illiquid valuations be counted?”
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Cuban is referring to private equity, or PE, and venture capital, or VC.
‘To help someone or send a message’
If he admits that he loses if we stick to the cash figures or what’s liquidated, the investor explains that the situation won’t be the same if we take into account his new capital raisings. companies in his wallet. Because the ability for a startup to raise capital from investors without difficulty increases its value.
“If I add valuations based on the last bull run, I’m doing great. But it’s not money in my pocket. Its potential. Raising money will hopefully generate a lot of profit. more,” Cuban argued.
However, he admits that, “however. IMHO [in my humble opinion]If you can’t spend it, it’s not financial gain. “
He ends by giving the philosophy behind his investments in the show Shark Tank. He explains for example that sometimes his investments are motivated by the desire to send a message or to help someone, not necessarily by attraction.
“And I’m happy with that with my Shark Tank companies. I don’t do the show to get the best investments,” Cuban said. “And I don’t always invest thinking I’m going to make money. Sometimes my trades are purely to help someone or send a message.”
Cuban has participated in 111 episodes of Shark Tank and completed 85 deals with a total investment of $ 19.85 million, according to shark catalyst. His biggest personal investment is in the company Ten Thirty One Production, in which he invested US$2 million with a 20% stake.
Overall, Cuban invested an average of $233,529 in exchange for an average 23% stake in the capital of the companies in question.
You can find a complete list of companies in which Cuba, through its MCC (Mark Cuban Companies), has invested in here. According to this list, his investments are diverse: for example a tattoo company, a robotics company, non-fungible token (NFT) companies, etc.
Cuba recently find myself bankrupt of crypto lending company Voyager Digital with which the Dallas Mavericks have signed a partnership, one of their missions is to promote cryptocurrencies.