Additional Coverage:
- ‘Shark Tank’ contestants convince Mark Cuban to invest $1.75 million even after he shook his head (marketrealist.com)
“Shark Tank” viewers know Mark Cuban rarely breaks his head-shake rule—if he shakes his head, the deal’s dead. But entrepreneurs Bradford Scudder and Rob Dickens of Rugged Races defied the odds, securing a $1.75 million investment from Cuban for their adventure sports festival business, even after eliciting the dreaded head shake.
Rugged Races, which organizes events like the Rugged Maniac across the country, offers a condensed obstacle course packed with challenges like a tower of shipping containers, mud pits, and a giant water slide, all wrapped in a festival atmosphere complete with additional activities and refreshments. Scudder and Dickens emphasized their unique selling proposition: a shorter, more obstacle-dense course compared to competitors like Tough Mudder, making it more accessible to a wider audience.
The duo’s impressive financials—$4.2 million in sales and $1 million in profit the previous year, with projections of $6.5 million and over $2 million in profit, respectively—certainly caught the Sharks’ attention. They also revealed a second venture, a rodeo-style event, which further piqued the Sharks’ interest. Initially seeking $3 million for 10% of each company, Scudder and Dickens faced pushback due to the second company’s nascent stage.
Robert Herjavec initially offered $1.5 million for 25% of both companies combined, later partnering with Kevin O’Leary for a third of both companies for the same amount. Cuban then matched Herjavec’s initial offer, and after negotiations, the entrepreneurs agreed to $1.75 million from Cuban, defying expectations and proving that even a head shake from Cuban isn’t always the end of the line.