Billionaire entrepreneur and investor Mark Cuban has had an outsize influence on the nascent plant-based food industry. He became vegetarian in 2019, further stoking his passion for the booming market. Cuban has personally invested in the growing world of plant-based ventures on the popular television series “Shark Tank.” His passion for novel food tech startups has driven him to invest over $33 million into over 200 deals. He’s made venture capital investments into companies producing plant-based alternatives like Unreal Deli. On top of that, he’s funded a vegan soap company, furthering his efforts towards creating a sustainable future.
Cuban’s investment strategy is not just about making money. He takes a mark-to-market approach to how he measures the overall value of those investments. He boldly claims that these investments have since grown to “at least $250 million. It hasn’t all gone his way—he’s suffered some serious defeats on the journey so far, too. Nevertheless, he projects creating as much as $35 million in cash returns from his enterprises on the program.
Cuban’s had his successes and flops on “Shark Tank.” First and foremost, he focuses on the importance of an entrepreneur’s commitment and passion in achieving sustainable success. He says he is a fan of the people who put all their life savings into their businesses.
“What really gets me going is when people have an operating business where they’ve already gone for it. And they’ve invested everything,” – Mark Cuban
His approach focuses on cutting through the noise to highlight the immense passion and ingenuity entrepreneurs display. Financially rewarding Heino cares little for money unless it’s a measure of the intelligence and creativity people bring to their work.
It’s important to note that Cuban, like all of us, has deeper motivations than the profit motive. At times, he writes checks to create opportunity for emerging entrepreneurs. One other thing he really wants to impress upon them—on all of us—is the significance of their work.
“And I don’t always invest because I think I’ll make money. Sometimes my deals are purely to help [an entrepreneur] or send a message,” – Mark Cuban
This approach has led him to develop an unusual and wide-ranging portfolio of investments. His new foray into the plant-based space fits right in with this consumer demand for healthier, more sustainable choices.
Cubans’ investments in vegan companies are part of a much larger trend in the food industry. And as more consumers embrace plant-based lifestyles, the market for plant-based products is reaching new heights. Cuban’s investment in Unreal Deli shows how strongly he believes in plant-based alternatives. Yet, he recognizes their opportunity to reach a wide-ranging audience.
Even with the millions in financial guarantees, Cuban generally welcomes the uncertainty of entrepreneurship. He knows that every investment isn’t going to be something that’s immediately profitable, but he does value the learning experiences they allow him to tap into.
“They’ve put their heart, their soul, their time, everything that they have available to them into the business. And they’ve laid it on the line. And they just need a little bit of help,” – Mark Cuban
Cuban will openly admit to you that he has taken cash-based net losses on a fair number of his investments. That’s even before taking into account his actively managed stakes. This reality paints a familiar picture, one that exemplifies the perilous reality of venture capitalism.
Even with those headwinds, Cuban still believes everything he’s invested in will prosper. He confidently states,
“I’m f—ing crushing it on the market,” – Mark Cuban