People often face trouble when checking coats at events or venues. The traditional coat check system relies on paper tickets, and these can easily get lost or even stolen. If this happens, it creates stress and confusion for customers. Sometimes coats themselves are misplaced, leaving patrons frustrated.
Derek Pacqué noticed these problems and decided to offer a better solution. He created a ticketless coat check system called CoatChex. This system uses technology to streamline the process and make it safer for everyone.
Derek introduced CoatChex on Shark Tank in Season 4. He explained how it worked and why it was a better option. He asked the Sharks for $200,000 in exchange for 10% equity in his company. He even used humor and fun gimmicks to make his pitch stand out. Did the entrepreneur get a deal on Shark Tank? Check out our CoatChex update to find out!
CoatChex (Chexology) Net Worth Shark Tank Update 2025
Derek Pacque went on Shark Tank asking for $200,000 for 10% of his company. This meant he thought his business was worth $2,000,000. He did not make a deal with any Shark. The episode was aired on September 27, 2013. The company rebranded as Chexology and continues to provide ticketless coat and bag check systems. Using the default 10% yearly growth method, the current net worth of Chexology is estimated to be around $6–7 million in 2025.
The company has seen significant growth since its Shark Tank appearance. Derek may not have secured a deal with the Sharks, but he found other ways to grow his business. Shortly after the show, CoatChex landed a big deal with Life in Color. This is an EDM concert tour where attendees are splashed with bright paint. CoatChex set up 7,000 stations to allow guests to clean and store their clothes. This helped make the event smoother for everyone.
In 2013, CoatChex became a sponsor for New York Fashion Week. This partnership showed that the company could cater to high-profile events. Over time, CoatChex expanded its services and rebranded itself as Chexology. Now, the company provides ticketless and contactless solutions for various venues and industries. Chexology has partnered with big names like the Museum of Modern Art, Hyatt, Nike, and Live Nation.
The business continues to grow, showing that Derek made the right choice by not taking a Shark Tank deal. As of today, the company is thriving and continues to help solve hospitality challenges.
CoatChex did not get a deal on Shark Tank. Derek asked for $200,000 for 10% equity, which valued the company at $2 million. The Sharks were not convinced by the valuation, and they had other concerns as well. Mark Cuban offered $200,000 for 33% equity, but Derek declined. Derek felt that giving up such a large stake in the company was not the right move at the time.
| Shark(s) name | Offer & Demand | Counteroffer | Accepted? |
| Robert Herjavec | N/A | $200,000 for 15% equity | No |
| Daymond John | Out | N/A | N/A |
| Kevin O’Leary | Out | N/A | N/A |
| Barbara Corcoran | Out | N/A | N/A |
| Mark Cuban | $200,000 for 33% equity | $200,000 for 20% equity | No |
CoatChex (Chexology) Shark Tank pitch
Derek Pacqué created CoatChex after experiencing frustration with traditional coat checks. He noticed that the system relied on paper tickets, which were inconvenient and easy to lose. Derek wanted to create a more efficient and secure system. His solution was a ticketless coat check platform that uses technology like facial recognition and picture verification.
In the early stages, Derek faced challenges like a lack of funding and skepticism from potential clients. However, he believed in his idea and worked hard to develop the platform. His goal was to improve the coat check experience for both customers and venue operators. Despite the hurdles, Derek’s determination helped him create a product that has now become a success.
Derek started his pitch with energy and humor. He brought in props like a coat on a leash and used confetti to grab attention. He explained how CoatChex works. The system replaces paper tickets with technology. Customers check their coats by having their picture taken. This ensures that the right coat is returned to the right person.
Derek asked for $200,000 for 10% equity in his company. He explained that he wanted to franchise the business. The Sharks appreciated his enthusiasm but had concerns about the valuation and business model. Keep reading our CoatChex update to see what happens next!
The Sharks had many questions about CoatChex. Here are some of the main queries:
Mark Cuban: Why are you planning to franchise this business? Derek explained that franchising would help the company expand faster. However, Mark disagreed and called the strategy “horrible.”
Daymond John: How did you come up with the $2 million valuation? Derek explained that the valuation was based on the potential market size and future revenue. Daymond was not convinced and dropped out.
Kevin O’Leary: Is this a seasonal business? Kevin was concerned that CoatChex would only be useful during the winter months. He felt that the company lacked a clear plan to scale and went out.
Barbara Corcoran: Why do we need to change the coat check system? Barbara didn’t see a big enough problem with the traditional system and decided not to invest.
Robert Herjavec: Can you offer a better valuation? Robert asked Derek to reconsider the valuation. Derek proposed $200,000 for 20% equity, but Robert decided not to invest.
Each Shark responded differently to Derek’s pitch:
Mark Cuban: Mark liked the idea but disliked the franchising model. He offered $200,000 for 33% equity but declined Derek’s counteroffer.
Daymond John: Daymond didn’t agree with the valuation and was the first to drop out.
Kevin O’Leary: Kevin thought the business was too seasonal and lacked a distribution plan.
Barbara Corcoran: Barbara didn’t think there was a need to change the existing coat check system.
Robert Herjavec: Robert was willing to invest but couldn’t agree on the valuation.
What Went Wrong With CoatChex On Shark Tank?
CoatChex did not secure a deal because the Sharks had several concerns. The biggest issue was the $2 million valuation. Most Sharks felt that the valuation was too high for a company with no sales. Derek’s franchising strategy also raised doubts. Mark Cuban called it a “horrible” idea, and Kevin O’Leary criticized the lack of a clear scaling plan.
Additionally, some Sharks felt that the traditional coat check system didn’t need to be replaced. Barbara Corcoran believed there wasn’t a big enough problem to solve. Overall, the concerns outweighed the potential for most Sharks, and they decided not to invest.
Product Availability
From our CoatChex update research, the product has evolved significantly since its Shark Tank appearance. CoatChex has rebranded as Chexology and now offers ticketless and contactless solutions. The company caters to various industries, including hospitality and entertainment. Chexology’s services are available at major venues like the Museum of Modern Art, Live Nation events, and Hyatt hotels.
Customers can learn more about the product on the company’s website. Chexology has expanded its offerings to include luggage storage and other innovative services. The product’s success shows that Derek’s vision was ahead of its time.
Conclusion
CoatChex started as a simple idea to improve the coat check experience. Although Derek didn’t get a deal on Shark Tank, he used the exposure to grow his business. The company has since rebranded as Chexology and continues to solve problems for customers and venues. Derek’s story shows that sometimes, turning down a deal can lead to greater success. We can’t wait to see what’s next for Chexology in the future!
Hey, I’m Amna Habib an undergraduate student of Bachelors in Business Administration. Shark Tank is one of my favorite TV shows of all time. The show provides a fascinating insight into the world of entrepreneurship by presenting creative solutions to common problems, which strongly connects to my academic interests. I’m interested in learning more about the strategic thinking and creativity that lead these companies as each pitch provides insightful information. I’ve found that watching Shark Tank has inspired my enthusiasm for business and entrepreneurship and has been a very enlightening and motivating experience. Apart from business and writing, I love food, shopping, and hanging out with friends and family. Read more About me.
