Titin – Weighted Compression Gear
DEAL
EPISODE SUMMARY
🕓 Air Date: October 31, 2014
Asking For:
$500,000 for 5%
Investor:
Daymond John
Deal:
$500,000 for 20%
PRODUCT SUMMARY
Titin offers patented, form-fitting, weighted compression gear designed around the human anatomy. The apparel uses gel weights as inserts with the same density as muscle tissue, providing benefits for training, muscle recovery, and flexibility.
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Background Story
Titin, led by founder and CEO Patrick Whaley, is a fitness apparel company that made its pitch on Shark Tank. Based in an Austin, Texas, Titin is at the forefront of biomechanics and innovative fitness solutions. Patrick, a mechanical engineer hailing from Georgia Tech, specializes in biomechanics, providing him with a solid foundation for creating groundbreaking products. The inception of Titin arose during Patrick’s time at Georgia Tech, where he recognized a need for a more effective and ergonomic approach to fitness training.
Drawing inspiration from his background in biomechanics, Patrick conceptualized a product that would not only enhance athletic performance but also prioritize comfort and functionality. Titin’s flagship product is a patented, form-fitting, weighted compression gear designed around the human anatomy. The key innovation lies in the use of gel weights as inserts, mirroring the density of muscle tissue. This unique approach not only optimizes the effectiveness of workouts by providing a tailored and internal load but also offers therapeutic benefits for muscle recovery.
The ability to heat or freeze the gel weights adds a dimension of versatility, catering to users seeking a comprehensive solution for both training and post-exercise recuperation. Patrick’s engineering background and passion for biomechanics infused Titin with a scientific edge, evident in the product’s emphasis on internal load versus external load. As the founder and visionary behind Titin, Patrick brought his expertise to the intersection of technology and fitness, aiming to revolutionize the way individuals approach their workout routines.
The Product
Titin’s groundbreaking product is a patented, form-fitting, weighted compression gear designed to revolutionize fitness training and recovery. The innovation lies in the incorporation of gel weights, strategically placed within the apparel to emulate the density of muscle tissue. These gel weights provide users with a dynamic, form-fitting, and comfortable solution for both training and muscle recovery.
The unique aspect of Titin’s gear is its adaptability for therapeutic purposes. Users can heat or freeze the gel weights, offering a versatile range of benefits, including accelerated muscle recovery and relief for sore muscles. This versatility sets Titin apart in the fitness apparel market, providing users with a comprehensive solution that goes beyond conventional training gear.
Titin’s product, available as a three-part system comprising a cover shirt, a pocket shirt, and a full set of gel weights. The product is primarily targeted at the military and CrossFit markets, with a focus on enhancing athletic performance and recovery.
Customers can purchase Titin gear through online retailers, and the company is in talks with multiple brick-and-mortar stores to expand its distribution channels. The innovative design and scientifically-driven approach make Titin a standout choice for individuals seeking a holistic and effective solution for their fitness routines.
How It Went
The company’s position before Shark Tank
Titin has demonstrated robust performance and a strong market position, as revealed during its Shark Tank pitch. The company’s financial health is impressive, with reported sales nearing $1 million in the previous month alone. Projections for the current year suggest a trajectory that could see Titin breaking the $10 million revenue mark, showcasing a remarkable growth trajectory. The company has strategically aligned itself with prominent partners, particularly in the medical distribution sector, with mentions of securing deals with the largest medical distribution company in the United States.
These partnerships underscore Titin’s commitment to expanding its reach and accessibility within diverse markets. In terms of distribution, Titin primarily sells its products through online retailers, catering to a broad customer base. The company is also actively engaging with multiple brick-and-mortar stores, signaling a potential expansion into traditional retail channels. Titin’s customer base primarily includes the military and CrossFit enthusiasts, positioning the brand within segments that prioritize high-performance fitness apparel. This targeted approach allows Titin to cater to the specific needs and preferences of its core demographic.
The funding structure of Titin has evolved, with a mention of a past venture capital deal that encountered challenges, resulting in a buyout of investors. Presently, the company sustains itself through sales revenue, indicating a self-sufficient financial model. Titin’s profitability is notable, boasting a 30% net profit margin, a remarkable achievement in the competitive fitness apparel industry. The overall structure of the company suggests a well-organized and focused entity. The team, consisting of skilled engineers and business professionals, is dedicated to the success of Titin.
The Negotiations:
The negotiations for Titin on “Shark Tank” were a rollercoaster of scrutiny, skepticism, and strategic maneuvers. Founder and CEO Patrick Whaley entered the tank seeking $500,000 for a 5% equity stake, valuing Titin at an ambitious $10 million. The initial reactions from the Sharks were mixed, with Kevin O’Leary expressing doubts about the valuation and eventually bowing out of the deal. Mark Cuban questioned the product’s uniqueness, likening it to traditional ankle weights, but did express interest in the potential growth.
Daymond John and Barbara Corcoran emerged as the main contenders for a deal. Daymond made an initial offer of $500,000 for a 15% equity stake, valuing the company at $3.3 million. However, he faced tough negotiations from Patrick, who sought a higher valuation. Barbara, on the other hand, jumped into the fray with a competitive offer of $500,000 for a 20% equity stake. This sparked a bidding war between Daymond and Barbara for Patrick’s favor. Sensing the competition, Patrick counteroffered Daymond with a $750,000 investment for a 15% stake, pushing the valuation to $5 million.
Ultimately, Patrick chose to accept Daymond John’s offer of $500,000 for a 20% equity stake. This decision was likely influenced by Daymond’s expertise in the apparel industry and his willingness to handle inventory and production aspects. Despite the initial skepticism from some Sharks, the negotiations concluded with a deal that positioned Titin for further growth with Daymond John as a strategic partner.
