Mark Cuban biggest ‘Shark Tank’ investments of the year have something in common

Mark Cuban, who made his fortune by starting and selling technology companies, offered only two $1 million investments to ABC’s Shark Tank in 2022.

They were not in software, crypto, or sports companies. Instead, the Dallas Mavericks owner gave his largest investments of the year for two food companies. He offered $1 million to Umaro, a seaweed protein company, for 7% of the company — and $1 million in CupBop, a Korean Barbeque chain, for 5% equity.

Cuban also split another $1 million investment offer with guest Shark Peter Jones: $300,000 with a $700,000 line of credit for 10% of dress shirt company Collars & Co.

Both companies seem to be doing well since their appearances. Umaro CEO Beth Zotter told CNBC Make It that she and her cofounder, Umaro, parted ways with Cuban after landing the Shark Tank deal. This was due to another closed funding round. Although they didn’t receive $1 million from Cuban for their product, it was still a prototype at the time of filming and will be available in 60 restaurants by January.

It is not uncommon for “Shark Tank’ investors and companies to end or revise their partnership. Forbes conducted a 2016 survey of 237 companies who appeared on “Shark Tank” between seasons 1 and 7. They found that 43% of the deals on the show were canceled, while another 30% are changed after taping.

CupBop informed CNBC Make It in May that it had 36 locations in six states of the United States and over 100 locations within Indonesia. CNBC Make It reached out to CupBop for comment but the company didn’t immediately respond.

Cuban, who converted to vegetarianism in 2019, has invested millions in food companies that were featured on Shark Tank over the years. Cuban is particularly attracted to startups that specialize in plant-based foods, such as Pan’s Mushroom Jeerky, a vegan cold-cuts business. Unreal Deli Snacklins is a vegan pork rind company, just to name a few.

The lifestyle, and investment strategy, appear to be beneficial to Cuban, too: He told Habits & Hustle podcast host Jennifer Cohen in August that he stopped eating meat to help reduce inflammation after he had both hips replaced. On the episode, he stated that “it’s like day and night.”

His investments have resulted in a gift-giving strategy, which he has not disclosed. The billionaire shared with CNBC Make It that he plans to gift loved ones healthy snacks in 2019 and 2021. He said this after Doug Saraci, its co-founder, sent him a box containing cookies. Saraci explained to CNBC Make It that Saraci asked for $50,000 to buy 25% of Alyssa Cookies.

“People get so much junk food [at the holidays]He said that they needed something healthy, low-calorie, and tasty.” CNBC Make It In 2019

Disclosure: CNBC has the exclusive off-network cable rights for “Shark Tank”.

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