As a personality, he is likely best known for his role as an investor on the television show “Shark Tank.” Cuban is also a multi-billionaire and can buy pretty much whatever he wants. Even so, $250,000 is a lot to spend on socks.
To be fair, the investment was not for a single pair of high-end golden footies, but for a 20 percent stake in Foot Cardigan, a sock subscription service that has earned nearly $1 million in the last year without Cuban’s help.
The premise of the company is that once each month, subscribers get a new pair of comfortable, creative socks in the mail. Prepaid subscriptions come in choices of one, three, six, and nine-month options. While the socks are high quality, they are manufactured overseas and buyers do not get to choose the style of the stocks but get a surprise when they open the mailbox.
Over the last 3 years, the company has amassed over 6,000 subscribers and brought in $1.36 million. Subscriptions jump to the 12,000 range around the holidays when they are given as gifts.
The co-founders of Foot Cardigan, Bryan DeLuca and Matt McClard went on Shark Tank to raise expansion capital. They were hoping to give up a 10 percent share of the company in exchange for $250,000.
The Shark Tank investors were all impressed and wanted a piece of the action, but were not willing to go in for the owners’ terms. In the end, it was Cuban who joined with CEO/Music manager Troy Carter for a 20 percent stake in the company.
While a couple of the “sharks” did not feel the company was offering anything that was all that intriguing, Cuban and Carter saw the potential in the service. They are estimating that they should have their investment back within three years and start seeing profits after that. Cuban said he is excited to see just how big the service can get.
At the very least, they have a foot in the door.