Mark Cuban makes a rare move on ‘Shark Tank’, invests big in fashion brand that lets dogs match their owners
Before exiting the high-stakes arena of 'Shark Tank,' Mark Cuban had invested $33 million, which earned him $35 million in cash returns and retained equity worth at least $250 million, per USA Today. While mostly Cuban can be seen as a calculated deal-maker, there was a moment when a dog brand won him over. Despite his initial hesitations, the Billionaire not only invested but also, in classic Cuban fashion, gave the owners an ultimatum to decide. In the midst of it, Cuban also let go of 5% of equity, a rare moment on 'Shark Tank.'
In an episode of 'Shark Tank,' Cuban was won over by sharply dressed dogs and, later, a baby. It all started when husband-and-wife duo Scott and Gina Davis pitched their company, Dog Threads, as per CNBC. The brand makes matching shirts for humans and their dogs, with model pups showcasing the look. Tinkerbell, a papillon-Maltese mix, wore the same tropical shirt as Shark Robert Herjavec, while French bulldog Gus Gus sported the same black-and-red flannel as his owner.
Amused, Herjavec asked, "I love dogs, but why?" Davis explained the inspiration behind Dog Threads, telling the Sharks, "In 2014, we had a Pomeranian poodle, and he loved dressing up. But I couldn't find clothing that matched his human-like personality anywhere. Every store I went in had cheap and tacky clothing. I thought, 'I wouldn't wear that, so why would we dress Thomas [her puppy] in it?'" As animal lovers, the Davises saw a business opportunity that could also give back to animals. "I went to school for design," Gina said.
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While working on her women’s clothing line, Gina designed her first pattern for Thomas, a button-down shirt that drew frequent compliments and inquiries wherever they went and that kicked off Dog Threads. In addition, the company also donates a portion of each sale to animal rescues and had 80% of its sales online, bringing in $196,000 in 2018 and projecting $240,000 for 2019. The couple sought $250,000 for 17% equity. Lori Greiner and Daymond John passed, but Cuban was interested in licensed merchandise, saying, "I can see [a Maverick's] fan with the Mav's logo."
Despite concerns over low margins, Cuban offered $250,000 for 30%, telling them, "I'm kind of on the fence, but I like what you're doing…There's a lot we can do with pricing. The Mavs buy hundreds and thousands of shirts." When Kevin O'Leary tried to make an offer, Cuban pressed for a decision, leading the Davises to counter with 25% equity to preserve ownership for their 1-year-old son Ziggy's future. Cuban agreed, joking they'd used the baby to win him over.
Gina laughed, "Thank you, Ziggy, for saving us 5% with Mark Cuban!" Since 'Shark Tank,' Dog Threads has rebranded as Good Thomas (after their dog) and grown to about $365,000 in annual sales, per Shark Tank Recap. Their product line now includes T-shirts, harnesses, leashes, matching holiday sweaters, and pajamas. Every order helps feed a homeless pup, though no licensing deals have emerged yet, leaving hope for a future Mavericks shirt.
