CoatChex After Shark Tank

Derek Pacque, the founder and CEO of Coatchex, recently graduated from Indiana University’s Kelley School of Business with a degree in Innovation, Technology, and Entrepreneurship, among other specializations.

His revolutionary coat check system was pitched to the Sharks in episode 402, which included fellow alumnus Mark Cuban, and they provided positive feedback.

The system uses a crude face recognition algorithm to connect jackets to their owners.

The Coatchex system was created with the intent of providing pubs and nightclubs that do not currently provide coat check services an easy and inexpensive way to provide coat check services, generating an extra revenue stream for their establishments as a result.

He received tens of thousands of dollars for testing in Indianapolis during Super Bowl week.

What Is CoatChex?

A smartphone app called Coatchex makes it possible to check in with anything using a computerized coat check system. Your cellphone will receive a confirmation message once your purchase has been confirmed.

The coat check worker must photograph you and your belongings to ensure your identification. The opposite of easy check-out is the case.

CoatChex is a sophisticated coat checking technology that does not require a ticket. The device captures a picture of your face and compares it to the image of your coat or other possessions.

CoatChex After Shark Tank

If your coat needs to be recovered, the attendant will verify the match between your picture and the picture of your coat by looking at both.

You can also use this method for other services such as valet parking, dry cleaning, baggage holding, and rental cars.

Company NameCoatChex
ProductChecking Services With Ticketless Technology
EntrepreneurDerek Pacque
WebsiteVisit Website
Episode Season 4 Episode 1
Investment Seeking$200,000 For 10% stake in CoatChex
Final DealNo Deal
SharkNo Shark
Business StatusIn Business

Who Is The Founder Of CoatChex?

Derek Pacque is the founder of CoatChex. Derek Pacque traveled from McLean, Virginia. 

He decided to complete his education at Indiana University – Kelley School of Business, where he earned a Bachelor of Science in Business Administration degree.

Derek is a college senior and the founder of Coatchex. After graduating from college, Derek moved to New York and is currently working for Coatchex and serving as CEO of Chexology.

Derek Pacque, a senior at Indiana University, found it inconvenient to lug his winter coat around with him when he went to pubs or restaurants.

He wished to find a creative solution to this situation and correct it. He got an idea of improving an old-fashioned concept of coat checking.

Derek transformed Coat Checking into a secure, ticket-free system after it had become a liability due to lost tickets and stolen coats.

Derek was in desperate need of assistance and someone who believed in him. Coatchex was created through a partnership between him and a former professor.

CoatChex Before Shark Tank

Derek Pacque created Coatchex in the following year after his jacket was stolen from a local pub in Bloomington, Indiana, where he attended college.

He was a student and faculty member at Indiana University, where Mark Cuban is a former student and faculty member.

There were usually no coat checks at those neighborhood taverns and clubs, leaving clients to either risk getting freezing or having their jacket stolen on the way in.

He started Hoosier Coat Check LLC as a side business in a few local bars. The eateries in the area generally did not meet the demand that the ticketed system met.

The Coatchex system was developed after Derek decided to streamline the process to make it more efficient and convenient.

His college professor served as a mentor and invested in the business.

Derek was accepted into Shark Tank even though he had never used his new method.

Are the Sharks going to eat Derek alive, or was he just getting started?

How Was The Shark Tank Pitch Of CoatChex?

Derek Pacque, a recent graduate of Indiana University, developed CoatChex, which allows coats to be checked without tickets.

A company spokesman explains that the software “uses patent-protected line hacking procedures as well as optical profiling technologies” to allow individuals to check their jackets and bags quickly and without having to wait in long lines.

A young entrepreneur pitched his company on the television show Shark Tank in September 2012.

Derek appeared on Shark Tank requesting an investment of $200,000 for a 10% equity in CoatChex.

According to his plan, he will sell franchises to “region developers,” who will then sell to end customers, similar to the widely utilized master franchise model.

In his own words, Cuban describes the scheme as “HORRIBLE HORRIBLE HORRIBLE!”

In Kevin’s opinion, the business is too seasonal, which is unusual since he is a Canadian who lives in Canada and who wears a lot of coats.

Barbara is just behind her. Daymond believes Coatchex is overpriced, so he decides to go out.

Mark and Robert support the business and the technology Derek patented that applies to other service businesses like valet parking and dry cleaning, but they oppose the franchising plan.

Derek offers to reduce the percentage to 15 percent, but Robert believes this is still insufficient and leaves.

Mark Cuban made an offer of $200,000 for a 33% stake in CoatChex, to which Derek counters with $200,000 for a 20% stake in CoatChex. 

Mark leaves the deal, and Derek walks away from the Shark Tank without securing any deal.

What Happened To CoatChex After Shark Tank?

What happened to CoatChex without Mark Cuban’s money and advice?

It appears that the attention gained by the event was enough to boost earnings and sales for the company.

It also brought with it some exciting possibilities. Life picked them in Color, combining a Color Run with a music festival.

CoatChex provided its participants with 7,000 stations so they could wash and store their clothes and possibly even their jackets.

Festival-goers who sweated and were covered in paint appreciated this a lot. CoatChex was also hired to provide New York Fashion Week clothing in 2013.

Derek Pacque has completely restructured his business model since he appeared on Shark Tank.

GrooveBook After Shark Tank

A CoatChex station does not charge its customers; instead, it is sponsored by major Nike and Adidas. This is a win-win situation for everyone involved.

The service continues to be free and provided to customers by CoatChex, and the brands gain valuable marketing information. CoatChex appears to be on its way up the corporate ladder.

CoatChex Shark Tank Update

Derek Pacque will be remembered as “the college kid who turned down Mark Cuban” for the rest of his life. He will undoubtedly benefit his business from this in the long run.

CoatChex is now expanding at a moderate pace, with a site in Chicago set to launch this winter. Coatchex is also in the process of securing agreements in Washington, D.C., and New York City.

Chexology is the new name for the company. In addition to coats, they now handle a wide range of other items and will inspect just about everything.

The company provides services and kiosks to events of all types, not just nightclubs, and are not limited to one type of event.

CoatChex After Shark Tank

Many companies have worked with the firm, including American Express, Nike, Barclays Center, House of Blues, Live Nation, and the Museum of Modern Art.

Attendees will receive all communications via SMS, and they will be reminded not to forget their belongings.

Derek made a wise decision by refusing to sell a third of their company, which will generate $7 million in yearly sales by July 2021.

Is CoatChex Still In Business?

Yes, CoatChex is still in business as of February 2022. CoatChex has grown its fan base from Shark Tank to include the Museum of Modern Art (MoMA), Live Nation, AMEX, Nike at the brand’s running clubs in New York City and the Barclays Center.

Glow Recipe After Shark Tank

Pacque reports that CoatChex earned more money checking jackets in during the 2016 Mercedes-Benz Fashion Week in New York than in its first year of operation.