Titin is a company that makes their pitch on Shark Tank by Patrick Whaley. His pitch is not received well and causes the Sharks to have harsh words for him, despite having a product that is producing significant sales in the marketplace.
Patrick Whaley comes into Shark Tank having used the money he has generated from sales to buyout a previous venture capital investor. The investor demanded that Patrick hire a seasoned executive to run the gel filled compression vest company and burned through the one million dollar investment that venture capital placed in Titan.
Titin Makes Deal with Daymond John
Ultimately, Daymond John makes a deal with Titin and Patrick giving him five hundred thousand dollars for twenty percent of the company. Daymond knows that Patrick Whaley is a challenge for him, but he also knows that the product sells and he can make money with this business.
Season: 6 Episode 607
First Run: 10/31/2014
Sharks: Mark Cuban, Daymond John, Kevin O'Leary, Lori Greiner, Robert Herjavec
Entrepreneurs: Patrick Whaley
Ask: $ 500k for 5% equity
Deal: Daymond John $500,000 for 20% equity
Controversy surrounds Patrick Whaley to the point another gentleman claims that Patrick's invention was not his, to begin with in the first place. However, the person claiming to be the creator vigorously pursued his allegations and had unsuccessfully proved his case in court.
The person making a claim has a laundry list of people who he claims are also a party to his accusations including former President Obama.
Titin is compression vests with gel weights added in at strategic places to help develop your body. The gel has the same density as muscle tissue. The biggest problem with Patrick's presentation is having documented proof of what this product does. He is using studies from universities that aren't specific to his product which causes Mark Cuban to become highly critical of Patrick.
Sales for Titin the previous year ran six hundred thousand dollars. The last month had almost a million dollars in sales, and projections for the current year are ten million dollars as of Titin's Shark Tank pitch. And, the company is without any debt. Customers include Cross-fit and the military.
Patrick is sitting on one million four hundred thousand dollars worth of purchase orders that he is unable to fill due to having to buy out the venture capital company.
What do the Sharks say about Titin and Patrick Whaley?
Mfark wants one university to study the product in depth, and Patrick doesn't get what he is saying. So Mark is out.
Robert Herjavec is trying to get him to be clear in his target market. Robert says he makes him uncomfortable and so he's out.
Lori Greiner is saying it is not hitting her as something she wants to invest in, so she is out.
Kevin O'Leary says it is apparel to him He will give him $500,000 for 15%. He likes that he has sales, but you are an arrogant asshole. But maybe we can be friends in the future.
Daymond John is putting an offer on the table. He is not sure he should trust him. Patrick needs the money for inventory, and Daymond is willing to handle the inventory and production. He will give him $500,000 for 20%. He is okay with a five million dollar valuation if they can get it done. Patrick finally takes the deal.
Daymond talks with Patrick after. Patrick said he wasn't trying to be difficult, but he got screwed the first time he did a deal, and he's uncomfortable.