Mark Cuban-Backed Startup Sorfeo Files For Bankruptcy: 'Win Some. Lose Some,' Says Billionaire Investor
Mark Cuban, the billionaire investor and co-owner of the Dallas Mavericks, has seen one of his investments take a turn for the worse.
What Happened: Sorfeo Inc., a Northern Virginia-based startup, has filed for Chapter 7 bankruptcy, as reported by Washington Business Journal. The company, which buys and launches brands to sell on Amazon.com Inc.'s e-commerce platform, listed up to 49 creditors in its filing on Jan. 19.
AirSquares, Pureport, GlareShade, Blue Zoca, Baker's Edge, Instamorph, Sherlock, Legal Dog Sign and Bullseye Darts, were among its existing brands.
The filing, signed by Sorfeo co-founder and director Mark Lewyn and Alexandria attorney Kevin O'Donnell, revealed secured claims totaling $3.84 million and unsecured claims of $1.04 million. Among the creditors is Cuban’s Radical Investments LP, with a secured claim of $1.263 million.
"Win some. Lose some," Cuban told the publication.
Cuban and Sorfeo did not immediately respond to Benzinga's request for comment.
Sorfeo, launched in 2020, was co-founded by Lewyn and Hal Widlansky. Despite raising at least $1.5 million in seed funding, Sorfeo’s financial situation deteriorated, with a significant drop in revenue from $4.3 million in 2022 to $1.99 million in 2023.
Why It Matters: This bankruptcy filing comes at a time when Cuban has been making significant business decisions. In December, he cited his inexperience in real estate as the reason for selling a majority stake in the Dallas Mavericks. Cuban’s entrepreneurial journey, as he described in a Wired interview, has been marked by resilience and self-discovery.
Despite this setback, Cuban has had a successful run as an investor, having invested over $20 million in at least 85 companies since becoming a regular on “Shark Tank” in season 3. However, he recently announced his departure from the show after its 16th season, stating that “it's time.”
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Posted-In: bankruptcy chapter 7 bankruptcy Kaustubh Bagalkote Mark CubanNews Startups Small Business General
