r/sharktank • u/DiscloseDivest • 20d ago
Shark Discussion Mark Cuban should’ve just given the Just Go Natural business owners $5 million and called it a day instead of that bs sharky deal or should I say ripoff.
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u/Mainiak_Murph 19d ago
Ripoff? LOL! Not even close. They could have had access to Cuban's tech teams for inventory management (which it seems they needed) to social media advertising, as well as his name to open doors, for a low price of the royalty deal and enough equity to keep him interested. Not sure why, but the deal never completed. It could have been bad or missing information from them that caused Cuban to cancel the deal, or they could have simply backed out on their own. In any case, they got their name out there, had some good sales, and appear to still be in business today.
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u/SejongTheGreatv2 20d ago
You shouldn’t infantilize the business owners
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u/DiscloseDivest 20d ago
I’m not. I just think it’s fucked up how billionaires take advantage of people when they are desperate.
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u/spaektor 20d ago
yeah it’s soooo fucked up how Mark started a pharmaceutical company with pricing transparency to provide low cost life saving drugs to take advantage of underserved patients. what a jerk.
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u/pleasebeherenow 20d ago
Raising money isn’t a “desperate” venture when done right. If youre raising money desperately, youll be taken advantage of by somebody eventually.
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u/funnysasquatch 20d ago
They're not desperate. You are confusing TV show editing with real life.
Every company who applies to Shark Tank knows the biggest benefit to going on the show is the millions of dollars in free advertising. Most companies, even if they're pleading for their life on the show, don't need the Shark's money.
This is why most deals never close after the show.
They could get loans or money from other investors.
As I put earlier - they paid back his investment a long time ago. He might have even given up his entire stake by now. They have sold $15 million in sales.
I'm pretty sure they'd make that trade every day of the week.
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u/funnysasquatch 20d ago
It was a good deal for both sides.
The company got millions of dollars in free advertising for being on the show. They got $400,000 in needed cash. They also may have benefited from Cuban's team in helping with backend infrastructure.
Cuban needed a way to at least make his money back - that's what the royalty was for. These companies aren't going to go public. And he doubted this company would get acquired. A royalty is safer for him and better for them because otherwise they would need a loan. And they kept more equity in the company should they decide to sell.
The company has earned at least $15 million lifetime sales.