CoatChex Ticketless Coat Check Update | Season 4
Coat check systems give paper tickets, and sometimes coats can be lost or stolen. That’s why Derek Pacqué created a ticketless coat check program, to help streamline and revive this old-fashioned offering to patrons. Will he get a deal on
Shark Tank CoatChex Update
- Entrepreneur: Derek Pacqué
- Business: Ticketless coat check
- Ask: $200,000 for 10% equity
- Result: No deal
- Shark: None
Derek employed humor and gimmicks, including a coat on a leash and a sudden shower of confetti, to introduce his company during
The system relied on a ticketless technology-based platform, using facial recognition and picture verification.
When he shared that he had no sales to date, and planned to franchise his business, Mark Cuban strongly disapproved of the strategy, shouting “Horrible!”, repeatedly to voice his disdain. Nonetheless, he stayed in.
Daymond John took issue with the valuation, and was the first shark to go out.
Kevin O’Leary was next to drop out, stating that he hated seasonal businesses, and didn’t believe the company had a distribution plan to scale.
Barbara Corcoran didn’t see a need for changing the coat check system and went out.
Robert Herjavec, unable to reconcile the $2 million valuation, asked Derek to make a different offer. He proposed $200,000 for 15% equity, cutting his valuation down to $1.5 million. Unimpressed, Robert dropped out.
At this juncture, Mark offered $200,000 for 33% equity, but Derek declined the offer. At Mark’s request, Derek made one final counter of $200,000 for 20%, to which Mark simply said, “No.”
Although Derek didn’t receive a deal on
Research for our CoatChex update finds that the company secured a large deal with Life in Color, an EDM concert tour that painted patrons with brightly-colored paint.
CoatChex was commissioned to set up 7,000 stations that allowed guests to wash and store spare clothing. Another great deal came in 2013 when CoatChex was signed on as a sponsor for New York Fashion Week.
We reached out to Derek to get more information for our CoatChex update, and he shared some exciting news.
“CoatChex is still going strong,” Derek told
“After we ventured into new markets like luggage storage, we rebranded the company from CoatChex to Chexology and have never looked back. Our ticketless and contactless product is tackling colossal hospitality challenges for institutions like the Museum of Modern Art, AEG Presents, Live Nation, TAO Hospitality Group, Hyatt, Hilton, Nike, The Barclay’s Center… and we’re just getting started.”
He also shared that he’s now known as the guy that turned down Mark Cuban, but he doesn’t regret it.
“At the time, my business partner and I felt that our company was too young to have one investor own that much stake in the company; that’s why we passed,” Derek told us.
“It was a hard thing to turn down. I wonder what Coatchex would have been like with Mark Cuban involved. That would have been surreal. But in the end, I think we made the right decision, and I’m proud of the company we’ve created and how much we’ve expanded since
It looks like the future is bright for Derek and we can’t wait to see where our next CoatChex update takes us!
Would you like to learn about the other companies featured on Season 4 Episode 1? Follow the links below for our other updates from the episode.
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Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!