Highlights
- Scott Jordan seeks $500,000 for 15% equity in Technology Enabled Clothing, a patented system of waterproof pockets and wiring for gadgets, while excluding his successful outerwear brand, ScottEvest, from the deal.
- The pitch becomes one of the most controversial in Shark Tank history, leading to a heated exchange between Jordan and Mark Cuban, who criticizes the business model and patent strategy.
- Despite a dramatic presentation and offers from Kevin O’Leary and Robert Herjavec, Jordan ultimately rejects the Sharks’ offers, leading to ongoing public disputes, but continues to grow his business independently, achieving $3 million in annual revenue by April 2023.
Overview
| Category | Details |
|---|---|
| Name | Technology Enabled Clothing |
| Founder | Scott Jordan |
| Industry | Apparel Technology |
| Product | Patented system for gadget-friendly outerwear |
| Funding | Seeking $500,000 |
| Investment Ask | $500,000 |
| Equity Offered | 15% |
| Valuation | $3.33 million |
Technology Enabled Clothing is the licensing arm of Scott Jordan’s ScottEvest empire. Scott, a non-practicing attorney, pitched the Sharks in episode 311 on that piece of his business. Technology Enabled Clothing is a series of internal water-proof pockets and wiring systems designed to house all the gadgets (iPads, cell phones, etc) that are ubiquitous in many people’s lives inside a vest or jacket. A garment with a Technology Enabled Clothing “system” in it makes for safer transport, added convenience, and quicker trips through airport security. The patented system is used in Jordan’s separate, retail business, ScottEvest, and he’s seeking to license the patent to outerwear manufacturers. ScottEvests are a favorite among the techie crowd.
Technology Enabled Clothing Pitch
This pitch is one of the most popular in Shark Tank history and it’s certainly the most controversial. Jordan went into the Shark Tank asking for a $500K investment for a 15% share in Technology Enabled Clothing. ScottEvest was not part of the deal. ScottEvest, as of the date of taping, had $5.1 million in sales and projected $12 million for the year. Jordan was not offering a piece of ScottEvest in his pitch to the Sharks, just part of the Technology Enabled Clothing patent license.
Mark Cuban got all up in Jordan’s face during the pitch, calling the entrepreneur’s rigorous defense of infringements a sham and setting the stage for some post-tank confrontations. Mark also thinks wireless will kill the need for the vests; he’s out. Daymond sides with Mark and goes out too. Barbara doesn’t care for the drama and she’s out too. Robert offers $500K for 15% of Technology Enabled Clothing and ScottEvest and Jordan asks Robert if he’s insane! Kevin chimes in with a $1 million offer for 30% of Technology Enabled Clothing and ScottEvest if Robert will invest with him. When Robert says he wants to go it alone, Kevin matches Robert’s offer.
Jordan thinks 15% of ScottEvest is too much. When Robert asks if he’d entertain any offer for ScottEvest, Jordan steps into the hall to phone a friend, Steve Wozniak, co-founder of Apple Computers. Wozniak says Robert’s offer is way too low. Jordan comes back in the Shark Tank and tells Kevin and Robert they’re out! Things got nasty and Jordan left without a deal.
Technology Enabled Clothing Shark Tank Update
The aftermath of this episode was more epic than the show itself. Mark Cuban continued to accuse Jordan of being a “patent troll” and the two engaged in a very public war of words on social media. Jordan and Cuban went at it on Twitter and Cuban even publicly supported a Scottish company called Aye Gear that was knocking off ScottEvests. A snippet of the Twitter exchange follows:
ScottEvest: @mcuban#Levi‘s received patent on rivet making Levi’s what it is today. Is that nonsense? Y do U think U know more than patent examiners?
MCuban: @scottevest doesnt surprise me that you have to go back to the 1800s to find an example
AyeGear: @mcuban the day we launched, guess who our first email was from? outrageous claims were made without even inspecting it.
MCuban: @AyeGear people will easily figure out work arounds. Thats why his patent should be worthless.
The back and forth continued all over the internet for a few days. I don’t think Scott Jordan and Mark Cuban will be going out to dinner any time soon!
Patents
Jordan and his business carried on quite nicely and ScottEvest is projecting sales of around $20 million in 2013. Technology Enabled Clothing is in the beginning phases of suing AyeGear for patent infringement.
Jordan announced the ScottEvest TEC 2.0 Jacket prior to the Consumer Electronics Show in January of 2013. The next generation jacket features some wild innovations. It has removable sleeves, speakers embedded in the collar, batteries embedded in the lining, and solar panels on the shoulders for charging gadgets while on the go. The only thing missing is the Marty McFly self sizing option!
Scott Jordan continued to be a bombastic personality. In 2017, he was forced to step down as CEO because he called Fox News viewers “fucking idiots.”
In 2019, he took back control of the company because the bank called a $2 million loan. The loan was for ad spending for TV spots. Apparently, the ad team wasn’t tracking the effectiveness of the ads and just kept throwing money at it, resulting in racking up the $2 million. Jordan covered the loan and retook control of the company. During the 2020 Covid-19 pandemic, sales dropped by 50% and Scott did a series of livestreams with his mother in law to talk about traveling. As of April, 2023, the company’s annual revenue is $3 million. Jordan’s net worth is estimated at $65 million.
ScottEvest TEC 2.0 Jacket Video
Posts about Technology Enabled Clothing, ScottEvest and Scott Jordan on Shark Tank Blog
There are quite a few articles about Scott Jordan on the Shark Tank Blog. He even guest posted on the site for a few weeks early on in season 4 in a series called “The Sixth Shark.”
Interview – Scott Jordan: TEC and ScotteVest Part One
Interview – Scott Jordan: TEC and ScotteVest Part Two
Correction on Today’s Earlier Post on Scott Jordan
Interview – Scott Jordan: TEC and ScotteVest Part Three
Scott Jordan Talks Episode 401
ScotteVest entrepreneur Scott Jordan 1 year later
Scott Jordan and Scott E Vest on Indie GoGo
Scott Jordan Opens Mouth, Inserts Foot
Latest Scott Jordan Apology Doesn’t Ring True
Scott Jordan on The Shark Tank Hang
Information on ScottEvest and Technology Enabled Clothing
BUY ScottEvest
I can’t believe it’s already been a few years since my appearance on Shark Tank and this article! Here is a follow-up with more tales from inside the Tank from interviews I did with dozens of Shark Tank entrepreneurs: https://www.linkedin.com/pulse/shark-tank-bites-broken-deals-amazing-success-untold-stories-jordan