Graham Winfrey | November 3, 2015
Mark Cuban is betting big on a miniature version of Airbnb.
On Friday's episode of Shark Tank, Cuban and guest shark Chris Sacca invested $100,000 each for a combined 10 percent stake in weekend home rental company Rent Like a Champion. Founded by Notre Dame alumni Mike Doyle and Drew Mitchell, the business specializes in renting out homes in small, college towns to visitors attending college football games and other weekend events. The co-founders started the business in 2006 in South Bend, Indiana, renting homes to Notre Dame fans in town to watch Fighting Irish football games. (Airbnb was founded in 2008.)
So what makes the company different from Airbnb?
Rent Like a Champion operates in non-traditional vacation rental markets where Airbnb has little or no inventory. It also focuses on event-based rentals that attract large crowds, like college graduations, parents' weekends, and reunions. The company makes money by taking a 15 percent fee from homeowners and an 8 percent fee on the renter side.