'Shark Tank' rejects founder's $300,000 deal. Mark Cuban revealed that one big mistake she made.
Several startups that didn't secure investments from "Shark Tank" and even received harsh criticism, went on to achieve success, because of the lessons that they learned there. Mark Cuban's funding decisions aren't the only factor that has spelled success for firms, the entrepreneur also has a simple yet effective piece of advice for founders pitching ideas to investors. According to him, all they need to do is to read the room.
As a 22-year-old, Cuban learned from his mentor that it's a good practice to listen more, and it has been his guiding principle since then. Back in 2021, Cuban gave very similar advice to an entrepreneur who walked into the room with confidence but left without closing a $300,000 deal. Sabeena Ladha, the owner of the Los Angeles-based cookie dough company Deux, had come to pitch her business on "Shark Tank," after it had already brought in $630,000 in lifetime revenue and raised $1 million in venture capital. The company had combined a direct-to-customer Instagram sales strategy with placement in 40 Whole Foods locations impressing the sharks.
Ladha is a first-generation immigrant of Pakistani and Indian descent who grew up eating Oreos for breakfast, Little Debbie honey buns for lunch, and Kraft macaroni and cheese for dinner at her father’s gas station in Dallas. After she graduated from college, she spent four years in marketing at Pepsico and Diamond Foods before launching Deux.
Ladha quickly got an offer from Robert Herjavec, who mentioned how he didn't like sweets but wanted to invest in her business. He offered Ladha $300,000 for 15% of her company’s equity. "Thirteen years, you’re probably one of the most impressive entrepreneurs that’s stood on that carpet," said Herjavec. However, Ladha spent too much time over the specifics which made the shark pull out even when she agreed to his initial terms. The other sharks also backed out voicing different concerns that they had with the product. "I no longer eat this kind of food anymore," Kevin O’Leary told Ladha, before adding, “Now, I’m not a kid. And now, I have to care." Defending her company, Ladha said that the sharks were not the target consumer but the target investor.
This is when Cuban stepped in to dole out the advice. "We may not be your target demo," Cuban said. "[But] you had a problem reading the room. You’ve got to read the room to at least make us feel good about who we are, and [about] investing," he added.
Cuban, known for his unambiguous ideas and business acumen, went back to Pittsburg and started working for a bank after graduating from Indiana University of Bloomington. He first gained fame and money after he purchased the Dallas Mavericks NBA team. Cuban turned things around at his Basketball franchise which was in a bad state and led it to success. Later in 2001, he went on to launch the high-definition network ‘HDNet’ with his partner, Philip Garvin.
Today Cuban is among the 540 richest people in the world, as per Forbes. As of 2024, Mark Cuban had amassed a net worth of $5.7 billion net worth.
