8 ms·

Mark Cuban makes Shark Tank remove equity clause in contract

259 points by ohashi 13y ago

001sky 13y ago
Savvy entrepreneurs aren't willing to trade an automatic stake in their company for appearing on a show without a deal
- porter 13y ago
  Kinda sounds like a jab at all the entrepreneurs that have appeared on the show already in exchange for an automatic stake.
aubreyjohnson 13y ago
This is an awesome step in the right direction. Hoping to see some better companies and more balanced deals.
ck2 13y ago
I know very little about him but this instantly makes me think he is a decent person at heart. (and retroactive too, nice detail)
- mdmarra 13y ago
  He is strongly opposed to high-frequency/algorithmic stock trading as well. Plus, he is regularly the most-fined owner in the NBA for telling the officials that they blew calls in press conferences. At the very least, he's certainly entertaining.
  - devx 13y ago
    And against patents: http://blogmaverick.com/2011/08/07/my-suggestion-on-patent-law/ http://blogmaverick.com/2011/08/07/my-suggestion-on-patent-l... http://techcrunch.com/2013/01/31/mark-cubans-awesome-justification-for-endowing-a-chair-for-eliminating-stupid-patents/ http://techcrunch.com/2013/01/31/mark-cubans-awesome-justifi...
  - tesseractive 13y ago
    As a fan of a rival basketball team (the San Antonio Spurs), I've followed Cuban for a long time. I don't really hold the fact that he's a competitor (and likes to talk smack) against him, and I'd say he's an excellent owner overall. His complaints about the officiating are sometimes biased -- I'm not sure if it's because it helps team morale to complain about calls and make your players feel like you have their back, or just because he gets emotional about his team, which is certainly understandable enough. Overall, I'd say he's probably the best marketing innovator in the league, though. Fans in the Metroplex have a number of different sports options and were spoiled by decades of Cowboys success, so they can be frontrunners at times and only care about their teams if they win enough to be seen as "interesting". In addition to helping make the team competitive and winning a title, Cuban has done a good job of building a strong fan base, one that isn't going to all head for the exits when they rebuild. That can be really tough to do, but he's made a lot of moves -- large and small -- over the years to make Mavs fans really invested in the teams and to make the in-arena atmosphere as fun as possible. And unlike some sports owners who are heavily involved in their teams, he knows how to hire experts at the game of basketball to handle the personnel and coaching decisions, and let them do their jobs with his support rather than feeling the need to interfere to satisfy his ego. At first I wondered if he had any idea what he was doing given the seemingly freak success of broadcast.com (which he sold at its peak and which then fell to pieces not too long after Yahoo bought it), but over the years, he's definitely seemed like someone who knows how to make smart business decisions and bring on the right people. I definitely wouldn't have any hesitation to do business with him, given the opportunity.
- e40 13y ago
  Before seeing Cuban on the show, I really didn't like him much. I had read things by him and heard things. It was all just impressions. I've watched (with my son) every episode of Shark Tank. He is now my favorite investor on the show. By far. I remember on one show it went off on a guest for their having a patent on something stupid. Cuban went on a tirade about patents and it really warmed my heart.
  - fuzzythinker 13y ago
    It may be this one you're talking about: http://techcrunch.com/2012/03/07/a-very-special-episode-tv-takes-on-patent-trolls/ http://techcrunch.com/2012/03/07/a-very-special-episode-tv-t...
- mindcrime 13y ago
  I can't claim to know Mark, but I have met him once, and had a brief conversation with him. I also got to listen to his keynote at the event and see him interact with the rest of the people who mobbed him trying to get a word (or a pitch) in edgewise after his keynote. My impression was very favorable, to be honest. I thought he seemed like a laid back, down to earth guy.. not at all like what I thought a billionaire would be like. He was just a guy in jeans and a polo shirt, hanging around in front of the stage talking with people. If you had not known who he was, there was no clue that he was ultra rich or a celebrity, other than the crowd milling around him. FWIW, his response to our company idea was basically "sounds good, you just have to execute". :-)
- samstave 13y ago
  His reddit AMA was rather funny as well. He came across really well in that.
jedberg 13y ago
That was always my biggest gripe with Shark Tank and the main reason I would advise people to stay away. I'm glad they finally fixed that.
ryanburk 13y ago
mark cuban, obviously not a traditional VC. and that is a good thing.
marcamillion 13y ago
I love this. Never knew this was a clause...glad he pushed for this. Mark really does seem like a stand up guy. Shark Tank sounds kinda 'fluffy' and I never paid it much attention for the first few seasons - but then I heard about a company that pitched and I was intrigued so I was searching through the episodes of one of the earlier seasons and I realized how awesome the show is. It is amazing to watch and see how quick the Sharks can sniff out vagaries of a deal - e.g. if an entrepreneur raised money before at some crazy price, or the cap table looks very weird, or the company was loaded up with debt. They always seem to get to that pretty quickly. I wonder if that is because they (the show) do due diligence on each company before they reach the sharks and the sharks have notes about what to ask for. Either way, I am always surprised by the quality of the pitches shown. Some are lame, but some are surprisingly good with solid business and likely solid growth prospects. As a general rule, their instincts tend to be pretty spot-on - it seems.
- jordanthoms 13y ago
  I think it's also because the pitches are actually much longer than what goes on TV - cutting a few hours down to 10 mins or so, while still trying to make it flow well.
  - pitt1980 13y ago
    full length unedited pitches might make for interesting DVD extra material
- pzxc 13y ago
  I've read interviews before where it was indicated they know nothing (and want to know nothing) until they walk through the doors to make their pitch. The extensive due diligence is done after the show, which is why deals struck on the show often fall through later on. For example, some of the companies that pitch indicate that they have patents, but of course the validity and defensibility of such patents is something that has to be researched, not something you can take their word for. So on the show they're like, "Do you have a patent?" and they reply, "Yes (or no)" and that's the end of that line of questioning because it has to be researched independently. The reason they seem to get to the crux of the issues so quickly, is because like most reality shows, it is heavily edited. A five or ten minute segment on the show reflects sometimes hours of questioning and discussion. From what I understand they have VERY long days (much longer than 8 hours, more like 12-14 hours a day) so it's almost an endurance thing for the sharks, because they spend so much time fleshing out the issues (and why wouldn't they since they're investing real money). Personally I love the show also. Also check out Dragon's Den, which has both a Canadian and a British version (same format though, 5 investors all competing), and more recently CNBC's show The Profit where Marcus Lemonis (who was on the Secret Millionaire) by himself goes to failing businesses and invests a hundred K or two and takes over management for a week to turn things around. I love this new era of entrepreneurship-themed TV, beats the hell out of Survivor or Lost. =)
crunkykd 13y ago
Wow, he's the real deal looking out for the entrepreneurs. Kinda reflects badly on the other sharks that they weren't agitating to end the Finnmax abusive equity grab too. I concur that a better class of startups can now show up, versus just desperate ones who would give away 5% of their company to extortionists.
morgante 13y ago
I still don't think many "savvy entrepreneurs" would/should turn to reality television for VC, but glad this ridiculous term got removed. Any other VC who demanded equity just for a meeting would've been laughed out of town years ago.
- freyr 13y ago
  I still don't think many "savvy entrepreneurs" would/should turn to reality television for VC Looked at another way, it's instant exposure of your company to 6+ million viewers. Seems like a great deal in some circumstances.
- loucal 13y ago
  I agree with freyer here. Unless you have a business that won't benefit (or will be harmed) from massive exposure I don't see the downside.
- avalaunch 13y ago
  True but this isn't exactly a normal meeting. It's 10-15 minutes of television coverage in front of ~6 million potential customers. Estimates have put the value of that advertising at about 600k. 5% of one's company is actually a pretty good deal for a lot of small B2C businesses when you look at it that way. If you already have a product being sold and it would do well on a show like QVC then the deal was pretty good. If, on the other hand, your company is B2B, or too big, or the product isn't being sold yet, than it's a lot more questionable. I'm glad they made the change. We'll probably start seeing a more diverse range of companies appear on the show.
  - kronholm 13y ago
    Just to add to your post, I don't remember ever seeing anyone getting a deal at 5%. It's usually more around the 20-30% range, and sometimes with equity stakes on top of that.
    - jaredsohn 13y ago
      The GP is referring to the equity given up just for being on the show (not the equity given up if a deal is made.)
csense 13y ago
I'm really glad I read this. I thought from the headline that it meant he wanted the sharks to have more wiggle room to get out of deals made on the show, or something similar that would make me think less of Cuban. I couldn't have been more wrong. This is great for entrepreneurs. Giving up five percent just for the chance to make a deal is BS. Giving it up to a TV production company is even more BS. I greatly admire and respect Cuban for having the guts to stand up for these startups. (And it really does turn out to be in his interest too -- smart founders should balk at having to give up five percent just to appear on the show!)
loucal 13y ago
I always wanted to pitch to shark tank and this equity clause was the only good reason I could think of not to. Most of the entrepreneurs were probably happy to give it up because of the exposure, but now it feels like trying to pitch on tv is an even better idea.
marcamillion 13y ago
This is also interesting that he waited to push for this until now. It just goes to show that no matter how rich you are, you have to understand your value. If he had pushed for this change in Season 1 - which I suspect he may have - he probably didn't get anywhere because the show could always replace him. Now that he has become synonymous with Shark Tank, he has much more leverage, along with the fact that maybe this clause has increasingly become an issue for companies.
- e40 13y ago
  Cuban wasn't on the show in season 1. He joined later.
  - chrisgd 13y ago
    Regardless of the season he joined, the point still stands
  - aarondf 13y ago
    Probably why he didn't push for it season 1 then!
nsxwolf 13y ago
Bravo.
netcan 13y ago
A show like this really needs someone like Mark Cuban in a very strong position as the equivalent of a creative director. The reality TV people could be good at turning whatever goes on into a good episode (or using enough nasty tricks to keep you watching for the next 5 minutes). To be a great show they need great material. In this case, that means the best companies need to want to pitch. The deals need to be envied by other investors. That's hard to manufacture and it probably won't be achieved unless someone like Mark Cuban is making it happen. A TV producer thinking from the perspective of shots & scenes & backstory shouldn't be making any decisions about deal terms. Exhibitionist fundraising might actually work if the deal terms were acceptable and your intended market happened to watch Shark Tank. Imagine square raised-launched on this kind of show.
joelrunyon 13y ago
> Cuban said the clause was removed retroactively, meaning every contestant who's appeared on the show since Season One will be relieved of the commitment. That's probably a huge sigh of relief for all past entrepreneurs.
- giarc 13y ago
  I wonder if they will be paid back any funds that were paid to the production company.
xpop2027 13y ago
This was the reason we didn't try to get on Shark Tank, maybe well apply now :)
eponymous 13y ago
I always suspected that ABC (or whoever) got equity in the companies, because they have (or used to have) a brief notice at the end of the show at the bottom of the screen with suggests that. But surely this must have tainted the whole process, because while an entrepreneur is considering a deal with the sharks, they would also have to take into account the equity they give away by just being a part of the show. I'm glad that's gone now. It probably means though, that the entrepreneurs will be able to buy back the equity, or buy their way out of the profit sharing agreement, more than likely at the highest possible valuations. But at least there is a way out. And it's good to know that future contestants won't have that to deal with.
nchuhoai 13y ago
I know everyone here is cheering for that move and inherently it probably is good. But what will inevitably happen is that we will see more people that come on the show for solely/mainly publicity reasons. We already see that happening right now occasionally when people ask for like 5% equity with clear objective or not making a deal with the sharks
- hayksaakian 13y ago
  Sure, but now that the show is well known, the producers probably have options to pick from among candidates. So its at their discretion to allow so called "publicity whores"
lesterbuck 13y ago
Recently, the I Love Marketing podcast had an hour discussion with former-Shark Kevin Harrington: http://ilovemarketing.com/episode-118-the-one-with-kevin-harrington/ http://ilovemarketing.com/episode-118-the-one-with-kevin-har... Harrington details why he left the show, mainly because all the little deals were sucking his time and it would be a full time, low return occupation managing them. Apparently Barbara Corcoran now does nothing other than tend to her Shark Tank flock.
- mountaineer 13y ago
  I watch the show regularly and I've heard Cuban mentions this nearly every time he says no. My time is what's valuable, etc. etc.
ahc 13y ago
While I love Mark Cuban, this move is clearly not just out of the "goodness of his heart". He is a savvy investor. The production company (Finnmax) was receiving the equity stake, not the sharks. He rightly felt that the clause was limiting the quality of startups trying to get on the show. Now that he's used his leverage to get rid of it, he will get better opportunities to invest in. He also gets the benefit of now seeming more entrepreneur friendly than the other sharks, which increases he chance of participating in deals.
- alttag 13y ago
  Because surely, when self-interest and altruism align, the real cause must be self-interest. In retrospect, that's an easy argument to make, but maybe there was some risk they'd accept his ultimatum and not bring him back for the second season?
- JRobertson 13y ago
  He also doesn't have to share stake in a company with a detached investor who literally got paid to get the equity. If you think about it it's kind of insulting to his time where his only payback for being on the show is payback from deals he makes. Where as Finnmax gets paid to produce the show, then takes a cut of every company, and likely does little to help the company advance. This would be extra telling for multi-million dollar valuations where the sharks end up getting single digit shares themselves and are expected to bring many contacts and continue to work with and mentor the investors.

259 points by ohashi 13y ago

001sky 13y ago

Savvy entrepreneurs aren't willing to trade an automatic stake in their company for appearing on a show without a deal

porter 13y ago
Kinda sounds like a jab at all the entrepreneurs that have appeared on the show already in exchange for an automatic stake.

aubreyjohnson 13y ago

This is an awesome step in the right direction. Hoping to see some better companies and more balanced deals.

ck2 13y ago

I know very little about him but this instantly makes me think he is a decent person at heart. (and retroactive too, nice detail)

mdmarra 13y ago
He is strongly opposed to high-frequency/algorithmic stock trading as well. Plus, he is regularly the most-fined owner in the NBA for telling the officials that they blew calls in press conferences. At the very least, he's certainly entertaining.
- devx 13y ago
  And against patents: http://blogmaverick.com/2011/08/07/my-suggestion-on-patent-law/ http://blogmaverick.com/2011/08/07/my-suggestion-on-patent-l... http://techcrunch.com/2013/01/31/mark-cubans-awesome-justification-for-endowing-a-chair-for-eliminating-stupid-patents/ http://techcrunch.com/2013/01/31/mark-cubans-awesome-justifi...
- tesseractive 13y ago
  As a fan of a rival basketball team (the San Antonio Spurs), I've followed Cuban for a long time. I don't really hold the fact that he's a competitor (and likes to talk smack) against him, and I'd say he's an excellent owner overall. His complaints about the officiating are sometimes biased -- I'm not sure if it's because it helps team morale to complain about calls and make your players feel like you have their back, or just because he gets emotional about his team, which is certainly understandable enough. Overall, I'd say he's probably the best marketing innovator in the league, though. Fans in the Metroplex have a number of different sports options and were spoiled by decades of Cowboys success, so they can be frontrunners at times and only care about their teams if they win enough to be seen as "interesting". In addition to helping make the team competitive and winning a title, Cuban has done a good job of building a strong fan base, one that isn't going to all head for the exits when they rebuild. That can be really tough to do, but he's made a lot of moves -- large and small -- over the years to make Mavs fans really invested in the teams and to make the in-arena atmosphere as fun as possible. And unlike some sports owners who are heavily involved in their teams, he knows how to hire experts at the game of basketball to handle the personnel and coaching decisions, and let them do their jobs with his support rather than feeling the need to interfere to satisfy his ego. At first I wondered if he had any idea what he was doing given the seemingly freak success of broadcast.com (which he sold at its peak and which then fell to pieces not too long after Yahoo bought it), but over the years, he's definitely seemed like someone who knows how to make smart business decisions and bring on the right people. I definitely wouldn't have any hesitation to do business with him, given the opportunity.
e40 13y ago
Before seeing Cuban on the show, I really didn't like him much. I had read things by him and heard things. It was all just impressions. I've watched (with my son) every episode of Shark Tank. He is now my favorite investor on the show. By far. I remember on one show it went off on a guest for their having a patent on something stupid. Cuban went on a tirade about patents and it really warmed my heart.
- fuzzythinker 13y ago
  It may be this one you're talking about: http://techcrunch.com/2012/03/07/a-very-special-episode-tv-takes-on-patent-trolls/ http://techcrunch.com/2012/03/07/a-very-special-episode-tv-t...
mindcrime 13y ago
I can't claim to know Mark, but I have met him once, and had a brief conversation with him. I also got to listen to his keynote at the event and see him interact with the rest of the people who mobbed him trying to get a word (or a pitch) in edgewise after his keynote. My impression was very favorable, to be honest. I thought he seemed like a laid back, down to earth guy.. not at all like what I thought a billionaire would be like. He was just a guy in jeans and a polo shirt, hanging around in front of the stage talking with people. If you had not known who he was, there was no clue that he was ultra rich or a celebrity, other than the crowd milling around him. FWIW, his response to our company idea was basically "sounds good, you just have to execute". :-)
samstave 13y ago
His reddit AMA was rather funny as well. He came across really well in that.

jedberg 13y ago

That was always my biggest gripe with Shark Tank and the main reason I would advise people to stay away. I'm glad they finally fixed that.

ryanburk 13y ago

mark cuban, obviously not a traditional VC. and that is a good thing.

marcamillion 13y ago

I love this. Never knew this was a clause...glad he pushed for this. Mark really does seem like a stand up guy. Shark Tank sounds kinda 'fluffy' and I never paid it much attention for the first few seasons - but then I heard about a company that pitched and I was intrigued so I was searching through the episodes of one of the earlier seasons and I realized how awesome the show is. It is amazing to watch and see how quick the Sharks can sniff out vagaries of a deal - e.g. if an entrepreneur raised money before at some crazy price, or the cap table looks very weird, or the company was loaded up with debt. They always seem to get to that pretty quickly. I wonder if that is because they (the show) do due diligence on each company before they reach the sharks and the sharks have notes about what to ask for. Either way, I am always surprised by the quality of the pitches shown. Some are lame, but some are surprisingly good with solid business and likely solid growth prospects. As a general rule, their instincts tend to be pretty spot-on - it seems.

jordanthoms 13y ago
I think it's also because the pitches are actually much longer than what goes on TV - cutting a few hours down to 10 mins or so, while still trying to make it flow well.
- pitt1980 13y ago
  full length unedited pitches might make for interesting DVD extra material
pzxc 13y ago
I've read interviews before where it was indicated they know nothing (and want to know nothing) until they walk through the doors to make their pitch. The extensive due diligence is done after the show, which is why deals struck on the show often fall through later on. For example, some of the companies that pitch indicate that they have patents, but of course the validity and defensibility of such patents is something that has to be researched, not something you can take their word for. So on the show they're like, "Do you have a patent?" and they reply, "Yes (or no)" and that's the end of that line of questioning because it has to be researched independently. The reason they seem to get to the crux of the issues so quickly, is because like most reality shows, it is heavily edited. A five or ten minute segment on the show reflects sometimes hours of questioning and discussion. From what I understand they have VERY long days (much longer than 8 hours, more like 12-14 hours a day) so it's almost an endurance thing for the sharks, because they spend so much time fleshing out the issues (and why wouldn't they since they're investing real money). Personally I love the show also. Also check out Dragon's Den, which has both a Canadian and a British version (same format though, 5 investors all competing), and more recently CNBC's show The Profit where Marcus Lemonis (who was on the Secret Millionaire) by himself goes to failing businesses and invests a hundred K or two and takes over management for a week to turn things around. I love this new era of entrepreneurship-themed TV, beats the hell out of Survivor or Lost. =)

crunkykd 13y ago

Wow, he's the real deal looking out for the entrepreneurs. Kinda reflects badly on the other sharks that they weren't agitating to end the Finnmax abusive equity grab too. I concur that a better class of startups can now show up, versus just desperate ones who would give away 5% of their company to extortionists.

morgante 13y ago

I still don't think many "savvy entrepreneurs" would/should turn to reality television for VC, but glad this ridiculous term got removed. Any other VC who demanded equity just for a meeting would've been laughed out of town years ago.

freyr 13y ago
I still don't think many "savvy entrepreneurs" would/should turn to reality television for VC Looked at another way, it's instant exposure of your company to 6+ million viewers. Seems like a great deal in some circumstances.
loucal 13y ago
I agree with freyer here. Unless you have a business that won't benefit (or will be harmed) from massive exposure I don't see the downside.
avalaunch 13y ago
True but this isn't exactly a normal meeting. It's 10-15 minutes of television coverage in front of ~6 million potential customers. Estimates have put the value of that advertising at about 600k. 5% of one's company is actually a pretty good deal for a lot of small B2C businesses when you look at it that way. If you already have a product being sold and it would do well on a show like QVC then the deal was pretty good. If, on the other hand, your company is B2B, or too big, or the product isn't being sold yet, than it's a lot more questionable. I'm glad they made the change. We'll probably start seeing a more diverse range of companies appear on the show.
- kronholm 13y ago
  Just to add to your post, I don't remember ever seeing anyone getting a deal at 5%. It's usually more around the 20-30% range, and sometimes with equity stakes on top of that.
  - jaredsohn 13y ago
    The GP is referring to the equity given up just for being on the show (not the equity given up if a deal is made.)

csense 13y ago

I'm really glad I read this. I thought from the headline that it meant he wanted the sharks to have more wiggle room to get out of deals made on the show, or something similar that would make me think less of Cuban. I couldn't have been more wrong. This is great for entrepreneurs. Giving up five percent just for the chance to make a deal is BS. Giving it up to a TV production company is even more BS. I greatly admire and respect Cuban for having the guts to stand up for these startups. (And it really does turn out to be in his interest too -- smart founders should balk at having to give up five percent just to appear on the show!)

loucal 13y ago

I always wanted to pitch to shark tank and this equity clause was the only good reason I could think of not to. Most of the entrepreneurs were probably happy to give it up because of the exposure, but now it feels like trying to pitch on tv is an even better idea.

marcamillion 13y ago

This is also interesting that he waited to push for this until now. It just goes to show that no matter how rich you are, you have to understand your value. If he had pushed for this change in Season 1 - which I suspect he may have - he probably didn't get anywhere because the show could always replace him. Now that he has become synonymous with Shark Tank, he has much more leverage, along with the fact that maybe this clause has increasingly become an issue for companies.

e40 13y ago
Cuban wasn't on the show in season 1. He joined later.
- chrisgd 13y ago
  Regardless of the season he joined, the point still stands
- aarondf 13y ago
  Probably why he didn't push for it season 1 then!

nsxwolf 13y ago

Bravo.

netcan 13y ago

A show like this really needs someone like Mark Cuban in a very strong position as the equivalent of a creative director. The reality TV people could be good at turning whatever goes on into a good episode (or using enough nasty tricks to keep you watching for the next 5 minutes). To be a great show they need great material. In this case, that means the best companies need to want to pitch. The deals need to be envied by other investors. That's hard to manufacture and it probably won't be achieved unless someone like Mark Cuban is making it happen. A TV producer thinking from the perspective of shots & scenes & backstory shouldn't be making any decisions about deal terms. Exhibitionist fundraising might actually work if the deal terms were acceptable and your intended market happened to watch Shark Tank. Imagine square raised-launched on this kind of show.

joelrunyon 13y ago

> Cuban said the clause was removed retroactively, meaning every contestant who's appeared on the show since Season One will be relieved of the commitment. That's probably a huge sigh of relief for all past entrepreneurs.

giarc 13y ago
I wonder if they will be paid back any funds that were paid to the production company.

xpop2027 13y ago

This was the reason we didn't try to get on Shark Tank, maybe well apply now :)

eponymous 13y ago

I always suspected that ABC (or whoever) got equity in the companies, because they have (or used to have) a brief notice at the end of the show at the bottom of the screen with suggests that. But surely this must have tainted the whole process, because while an entrepreneur is considering a deal with the sharks, they would also have to take into account the equity they give away by just being a part of the show. I'm glad that's gone now. It probably means though, that the entrepreneurs will be able to buy back the equity, or buy their way out of the profit sharing agreement, more than likely at the highest possible valuations. But at least there is a way out. And it's good to know that future contestants won't have that to deal with.

nchuhoai 13y ago

I know everyone here is cheering for that move and inherently it probably is good. But what will inevitably happen is that we will see more people that come on the show for solely/mainly publicity reasons. We already see that happening right now occasionally when people ask for like 5% equity with clear objective or not making a deal with the sharks

hayksaakian 13y ago
Sure, but now that the show is well known, the producers probably have options to pick from among candidates. So its at their discretion to allow so called "publicity whores"

lesterbuck 13y ago

Recently, the I Love Marketing podcast had an hour discussion with former-Shark Kevin Harrington: http://ilovemarketing.com/episode-118-the-one-with-kevin-harrington/ http://ilovemarketing.com/episode-118-the-one-with-kevin-har... Harrington details why he left the show, mainly because all the little deals were sucking his time and it would be a full time, low return occupation managing them. Apparently Barbara Corcoran now does nothing other than tend to her Shark Tank flock.

mountaineer 13y ago
I watch the show regularly and I've heard Cuban mentions this nearly every time he says no. My time is what's valuable, etc. etc.

ahc 13y ago

While I love Mark Cuban, this move is clearly not just out of the "goodness of his heart". He is a savvy investor. The production company (Finnmax) was receiving the equity stake, not the sharks. He rightly felt that the clause was limiting the quality of startups trying to get on the show. Now that he's used his leverage to get rid of it, he will get better opportunities to invest in. He also gets the benefit of now seeming more entrepreneur friendly than the other sharks, which increases he chance of participating in deals.

alttag 13y ago
Because surely, when self-interest and altruism align, the real cause must be self-interest. In retrospect, that's an easy argument to make, but maybe there was some risk they'd accept his ultimatum and not bring him back for the second season?
JRobertson 13y ago
He also doesn't have to share stake in a company with a detached investor who literally got paid to get the equity. If you think about it it's kind of insulting to his time where his only payback for being on the show is payback from deals he makes. Where as Finnmax gets paid to produce the show, then takes a cut of every company, and likely does little to help the company advance. This would be extra telling for multi-million dollar valuations where the sharks end up getting single digit shares themselves and are expected to bring many contacts and continue to work with and mentor the investors.