As a passionate entrepreneur, it made perfect sense that CEO Scott Jordan wanted to go on Shark Tank. Scott had already secured a patent for the Personal Area Network and he felt the popular TV program would be the perfect opportunity to secure funding for TEC-Technology Enabled Clothing® and partner with a Shark to grow the licensing company.
So, in the summer of 2011, he started perfecting his pitch and researching how he could get on the show. He quickly got his foot in the door with ABC’s producers. After a ton of paperwork and negotiation, Scott’s appearance date was set!
In what is considered one of the most controversial episodes in the history of the show, Scott was unwilling to give the Sharks a piece of SCOTTeVEST, only the licensing company TEC-Technology Enabled Clothing®. What ensued was a battle with Mark Cuban, a call to Apple co-founder Steve Wozniak, and Scott walking out with $1 million on the table.
When watching the episode, you may have thought Scott was an arrogant jerk just looking for free publicity. Or, perhaps you thought Scott was a brilliant businessman who wouldn't let the Sharks push him around. Well, there are two sides to every story!
Like all reality TV, the episode was edited to increase the perceived tension and there was some important fine print in the contract that influenced Scott's decision.
Scott believes that the Sharks were intentionally 'baiting' him the entire time he was being filmed. Due to the contract fine print, just one mention of the brand SCOTTeVEST would have triggered a clause in the contract and forced Scott to give the Sharks 5% equity or 2% of the profits of SCOTTeVEST. So, he walked away from a deal with the Sharks when it became apparent they were only interested in SCOTTeVEST.
Some people praised Scott for standing up to the Sharks and for keeping his head on his shoulders. Others scorned him, saying that it was all a publicity stunt or that he was disrespectful and a "patent troll." Several major blogs reported on Scott's performance, including Tech Crunch, Gear Dairy, and the "official" Shark Tank Blog.
Even though Scott walked away from a million-dollar offer, he has continued to grow SCOTTeVEST successfully without any outside investment.
Today, SCOTTeVEST has sold more than 10 million pockets to thousands of customers worldwide. The business has continued to grow in every facet – no Sharks needed!
There are no hard feelings between Scott and the Sharks. In fact, after the taping almost all of the Sharks came up and shook Scott's hand and told him what a great job he did. Months later, Scott even ran into Mark Cuban and they both took the time for a quick photo.