‘Shark Tank’ judges turning down deals isn’t new — but this CEO flipped the script and built a $3M brand
'Shark Tank' has had millions of entrepreneurs walk in with one dream: to bag a deal with the seasoned investors. While it's always the Sharks who have the last say in the game, in season three, a contestant turned the tables around when he told the panel they are "out" after they had made them an offer. Entrepreneur Scott Jordan came up with a pitch for his company, TEC (Technology Enabled Clothing), and asked for $500,000 for 15% equity. During the pitch, he explained that the product is wireless clothing designed with specially designed pockets for electronic devices such as phones, laptops, tablets, and other accessories.
What made it stand out was that it also came with a clear-touch fabric, designed especially to work with touchscreens. Throughout the pitch, Jordan was confident and he wrapped it up with a bold claim, calling his product a "billion-dollar opportunity.” The Sharks seemed impressed. According to Shark Tank Recap to Jordan also revealed that he’d had sales of $1.1 million to date at the time, and was on track to make $12 million for the year. He also stated that the retail business was not included in the deal, but he came looking for licensing opportunities for the product and how to work with other clothing companies.
Daymond John asked how was his product different than the other products in the market, to which the entrepreneur replied, "They are infringing on our patent." He explained, "I have settled with 11 largest companies, including VF Corporation, The North Face, Ralph Lauren, Calvin Klein, Under Armor, Spider," with a tone of authority. But Kevin O'Leary cut him mid-sentence and asked if he was getting an ongoing royalty from them. When Jordan replied with a "yes," it was enough for O'Leary to make him an offer. He told Jordan, "You need me very badly," and said wanted a part of his retail business. Jordan refused and said, "I don't need you for the other company."
O'Leary retaliated with, "Then I don't get any of the good stuff, just the risky stuff." But Jordan didn't give in. Meanwhile, Robert Herjavec made him a deal of $500,000 for 15% equity in the patent, but he also wanted to be a part of his retail clothing business. Jordan called a member of his board advisory, Steve Wozniak, to help him with the decision. When he came, he told the Sharks to reconsider the offer. Things got interesting when Jordan replied, "I would like to give you another opportunity," to which Herjavec tried to explain his standing, "The way it works on the Tank, is we make an offer..." but even before he could finish his sentence, Jordan blurted out, "Then let me be clear, Kevin you are out!" Pointing to Herjavec, he said it again, "You are out," before adding, "I don't need you," leaving the Sharks stunned.
Ultimately, Jordan walked away with no deal. Shark Tank Recap reported that the company was rebranded as SCOTTeVEST and was making $3 million in annual revenue as of 2023. Speaking to Ecommerce Magazine, Jordan shared his mantra behind his success, "What ties many entrepreneurs together is perseverance. Don’t expect everything to happen overnight; be ready to shift if need be. Seventeen years later, I still wake up every morning sprinting to get everything done. So don’t lose your enthusiasm because no one will have it to the degree that you do."
