Mark Cuban Invests $125,000 in Deviled Egg Co. for 10% Equity

Mark Cuban invested $125,000 in Deviled Egg Co., a restaurant chain founded by Raechel Van Buskirk and Alexi Wellman, in exchange for 10% equity. The company, which specializes in deviled egg flavors, has two sit-down locations and one grab-and-go storefront near Dallas, generating $1.3 million in annual revenue. Cuban's investment will help fund the expansion of two more grab-and-go models and potential franchising.

Mark Cuban, the renowned entrepreneur and investor, has launched a new $750 million private equity fund, Harbinger Sports Partners (HSP), focused on minority stakes in undervalued sports franchises across the United States. The fund, led by Cuban, Steve Cannon, and Rashaun Williams, aims to capitalize on the growing interest in private equity investment in sports teams.

HSP plans to take minority stakes in professional sports franchises across all U.S. leagues, deploying a data-driven approach to identify undervalued assets. The fund will target positions between 1% and 5% in 92 franchises, with deal sizes ranging from $50 million to $150 million. Steve Cannon, a veteran sports executive and limited partner in the Atlanta Falcons, and Rashaun Williams, who has experience with the Atlanta Falcons, join Cuban as founding partners.

Cuban, who still holds a 27% minority stake in the NBA's Dallas Mavericks after selling his majority stake in December 2023, has expressed optimism about the potential of the sports sector as an institutional-quality asset class. HSP will not only source and underwrite deals but also help with liquidity planning for its portfolio teams.

The launch of HSP comes as sports valuations soar and teams seek new capital. The NFL, the last major sports league to approve private equity investment, now allows up to a 10% stake by select firms. This opens the door for private equity investment in sports, presenting new opportunities for investors like Cuban.

In a separate development, Creative Realities, Inc. reported its financial results for the first quarter of fiscal 2025. The company reported revenue of $9.7 million, down from $12.3 million in the same period last year, with a net income of $3.4 million. The company attributed the revenue decline to installation timing issues but highlighted a significant contract with a major restaurant chain to enhance its digital menu boards following a successful pilot. Despite the challenges, CEO Rick Mills expressed optimism for strong growth in the latter half of 2025, supported by new deployments and a focus on debt reduction following the settlement of a contingent liability. As of March 31, 2025, total debt decreased to approximately $23.2 million, with cash on hand around $1.1 million.

References:
[1] https://www.cnbc.com/2025/05/16/mark-cuban-sports-focused-private-equity-fund.html
[2] https://www.nasdaq.com/articles/creative-realities-inc-reports-fiscal-q1-2025-financial-results-highlighting-revenue