Mark Cuban reveals common mistake that has ended Shark Tank deals

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Shark Tank star Mark Cuban (Image via Getty)

Billionaire investor Mark Cuban has invested $29 million in 85 companies through Shark Tank deals as of March 2025. Speaking at SXSW on March 12, he revealed that many investment deals fall through when financial reviews reveal inaccurate profit calculations.

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Cuban pointed out that companies often overestimate their margins while underreporting costs during due diligence. His observations align with U.S. Bureau of Labor Statistics data indicating that financial mismanagement leads to 50% of small businesses closing within five years.

The owner of the Dallas Mavericks shared these insights while discussing his 15 years of experience evaluating thousands of business pitches on the show. As of 2025, Mark Cuban is serving his last season as a permanent Shark Tank panelist.

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Shark Tank deals fail due to wrong profit estimates, says Mark Cuban

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During his SXSW presentation, Cuban addressed the financial blind spots impacting entrepreneurs' success rates—

"I can't tell you how many times we've looked under the hood of a business that thought they were profitable, and they weren't," Cuban told the crowd.

The Shark Tank investor also stressed the importance of understanding accounting fundamentals rather than getting caught up in brand building. In the same interview, Mark Cuban outlined a strategy for Gen Z's success in technology. He recommended spending considerable time studying artificial intelligence and suggested that young people should learn about AI even while they sleep by listening to educational podcasts.

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Cuban pointed out a specific business opportunity for younger entrepreneurs—teaching NotebookLM to small businesses at $25 per hour. His insight is based on years of experience in digital technology, including his success with Broadcast.com and various tech investments.

The Shark Tank investor stressed that AI skills combined with teaching abilities could create multiple revenue streams for young people entering the workforce. This aligns with his earlier comments at the 2023 Detroit policy conference about AI's crucial role in business success.

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Cuban's investments

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According to Fortune, Cuban has invested over $29 million in Shark Tank. A significant success story emerged with BeatBox Beverages, where his $1 million secured one-third ownership. The company now generates approximately $200 million in annual revenue.

Dude Wipes is another substantial win in Cuban's portfolio. His initial $200,000 investment for 20% equity has seen considerable growth, with the company now valued at $300 million. However, he has also experienced setbacks. The smartphone breathalyzer Breathometer is one example. The startup gained backing from all five Sharks, a rare occurrence in the show's history. Cuban's investment led to an estimated loss of $1 million.

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During his appearance on the Full Send Podcast in 2022, he described watching the founder's social media posts showing luxury vacations while the company struggled.

Speaking at the Fortune Brainstorm Tech Dinner in Las Vegas, the Shark Tank investor discussed the current state of his portfolio.

"On a mark-to-market basis, I'm killing it," Cuban stated to Fortune.

His portfolio now includes multiple companies valued at more than $100 million. The most recent Bloomberg Billionaires Index places Cuban's net worth at $7.69 billion, reflecting his overall business success.

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About Mark Cuban

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Cuban started his business career at age 12, selling garbage bags in Pittsburgh's Mt. Lebanon suburb. Through various ventures, he founded MicroSolutions and sold it to CompuServe for $6 million in 1990. He co-founded Broadcast.com in 1995, which Yahoo later acquired for $5.7 billion in 1999.

In 2000, he purchased the Dallas Mavericks, leading them to win an NBA championship in 2011. Beyond Shark Tank, Cuban started Mark Cuban Cost Plus Drugs in 2022, which provides reduced-price prescriptions. His portfolio also grew through 2929 Entertainment, which he co-founded in 2003 for film development and production.

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The businessman further expanded into digital technology investments, holding interests across the healthcare, entertainment, and sports sectors.


Shark Tank season 16 is airing on ABC network.

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Edited by Shreya Das
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