Startup opportunities: Fitness meets Gaming in the metaverse
💡 It's hard being an angel investor, as Mark Cubans SharkTank track record shows.
💡 It’s hard being an angel investor, as Mark Cubans SharkTank track record shows.
➡️ He has invested $19,850,000
➡️ 85 deals across 111 episodes
➡️ 19% of the 443 pitches heard in 111 episodes
➡️ largest deal was $2,000,000 in “Ten Thirty One Productions” for 20% of the business
➡️ average investment size $233,529 average / $125,000 median
➡️ equity stake taken 23% average / 20% median
➡️ deal valuation $1,617,758 average / $750,000 median
➡️ discount 50% below median asking valuation of $1,500,000
➡️ co-investments 43 of 85 deals (51% of total) have been with another shark
✅ Is he up financially❓
❌ In his words, “no, I’ve gotten beat…”
💡 So why is that?
✅ We know that Mark is an amazing businessman and investor
✅ We can see that he has diversified and spread his risk
✅ The opportunities have all been pre-vetted
✅ There is further diligence that happens after
➡️ Maybe it is just down to the format of the show 🤷🏼♂️
💡 But one thing is for sure, early-stage investing is really tough and trying to hit home runs is even tougher.
➡️ For anyone thinking that writing a few cheques to a few founders with ideas that sit outside of your expertise and knowledge base is the way to generate wealth, you may well be in for a shock and should consider going to the casino.
✅ This is not to say that #powerlaw investing is the right way either. I truly believe that a combination of diversification with a goal to achieve consistent runs (as opposed to single home runs) is the way to create venture-type returns over the long term.
🙏🏼 It would be great to hear your feedback and how a better and more supportive model could be used?
For the ❤️ of startups