Mark Cuban Reveals Sad Shark Tank Deal That ‘Drives Him Crazy’ Was Chocolate-Covered Pretzel Company Offering Free Rides
In a 2017 Q&A with Oxford Union students, Mark Cuban opened up about one of his biggest regrets about Shark Tank — and he didn’t hold back. Asked about his commitment to the companies he invests in, Cuban emphasized that he is there “until death do us part” as long as the founders continue to grind.
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Of his 71 plants in the show, about 12-15 are thriving, and three have already emerged (although, as he jokes, “nothing really exciting”). Then he got the real thing: under his portfolio, Cuban revealed, “10 of the 71 … three are out of business and seven are out of business but not smart enough to know.” The crowd laughed, but Cuban didn’t let the moment slip without giving an example of the deal that “drove him crazy.”
The investment he was talking about? Chocolate covered pretzel company. Although he didn’t mention it in the Q&A, the company was Painted Pretzel, founded by Raven Thomas. Cuban invested $100,000 in the company for 25% equity after being impressed by Thomas’ passion and the product’s potential. With a huge PR boost from Shark Tank, sales increased 1,500% post-episode – you’d think it was the start of something big. But behind the scenes, things quickly became apparent.
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The problem? Free shipping. Cuban explained that even though the pretzels cost about $14, they sold for $29.95, which should have left a $15 profit margin. But posting? It was $16 a pop. That “free shipping” benefit that was supposed to attract more customers ate into profits. The Cuban described it as watching the money “just disappear,” adding, “The money goes like this,” motioning to show how quickly it came out. And it wasn’t just shipping. The company has reportedly faced complaints about delays, adding to the many customer support issues.
Reflecting on the deal, Cuban admitted, “I probably shouldn’t have had it [invested],” revealing that it was partly to prove a point to his fellow Sharks, especially Kevin O’Leary, when he was new to the game. looking frustrated.
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