Beyond the Shark Tank_ The Untold Growth Story of CoatChex to Chexology.pdf

Ever lost a coat ticket at an event and spent hours trying to prove your coat was yours? What if checking your coat was as easy and secure as unlocking your phone? That’s the idea behind CoatChex.

1. Beyond the Shark Tank: The
Untold Growth Story of CoatChex
to Chexology

​​Source: chexology.com
Ever lost a coat ticket at an event and spent hours trying to prove your coat was yours?
What if checking your coat was as easy and secure as unlocking your phone? That’s the
idea behind CoatChex.
Imagine you go to a fun event in the winter and you’re wearing a big, fluffy coat. You
don’t want to carry it around while you’re dancing or playing. Usually, you’d give your
coat to a worker, and they’d give you a little paper ticket so you can get it back later.
But sometimes people lose that little ticket, Opps!

2. CoatChex has a smart system that eliminates the need for paper tickets. Instead, they
use computers and screens to help you check your coat safely and get it back easily,
even without a paper slip. That means you don’t have to worry about losing anything!
It all started with Derek Pacqué, a young entrepreneur who once ran a small coat check
service and noticed how many people lost their tickets. He came up with a ticketless,
digital solution. Derek even pitched CoatChex on Shark Tank, grabbing national
attention. Today, CoatChex helps people check their coats easily and safely at busy
places, no paper, no stress, just a smarter system.
Turning Frustration Into Innovation: Derek Pacqué’s Journey
Derek Pacqué’s journey began in 2010 with a simple but frustrating problem: he lost his
coat at Indiana University. That moment sparked a big idea. Wanting to fix the outdated
coat check system, he started testing a new concept at local bars around campus. By
using photos and phone numbers instead of paper tickets, Derek created a smoother,
smarter way to check coats, which would become CoatChex.
His idea gained national attention when he appeared on Shark Tank in 2012. Though he
turned down a deal, the exposure helped transform his college concept into Chexology,
a global tech company revolutionizing item tracking.
Let’s turn this story page to Shark Tank exposure.
The Shark Tank Chapter: Where It All Went Public

3. slashgear.com
Here’s how Derek Pacqué brought his vision to life on Shark Tank:
●​Season & Episode: Season 4, Episode 401 (sometimes listed as 402) on ABC’s
Shark Tank.
●​The Ask: $200,000 for 10 % equity, implying a $2 million valuation
Turn the page to 2012, Derek Pacqué, a recent Indiana University graduate with a lost
coat story and a bold vision, stepped into the Shark Tank. With his creation, CoatChex,
he aimed to reinvent the age-old coat check system: no tickets, no hassle, no lines.
Instead, his system used patent-pending line-hacking software and optical profiling to
streamline the entire experience.
He stood before the Sharks asking for $200,000 in exchange for 10% equity, pitching a
franchise model where regional developers would bring the tech to local venues. But not
all Sharks were sold.

4. ●​Kevin O’Leary called the business too seasonal, ironically, as a Canadian who
lives in coats.
●​Barbara and Daymond dropped out, unimpressed with the pricing and model.
●​Mark Cuban famously called the franchise idea “HORRIBLE, HORRIBLE,
HORRIBLE!”
●​Robert appreciated the tech but wasn’t convinced by the structure.
Still, sparks flew. Cuban offered $200,000, but for 33%. Derek countered with 20%. The
room tightened. Cuban declined, and Derek walked away deal-less.
But that night, CoatChex won something more valuable than funding: national attention.
Thousands visited the site. Big names like Nike and Adidas came knocking.
Soon after, CoatChex was checking coats at New York Fashion Week, setting up 7,000+
storage stations at vibrant festivals like Life in Color, and offering sponsored coat check
services where users paid nothing, brands picked up the tab, gaining valuable marketing
data in return.
Derek reimagined the business model entirely. No longer selling directly to customers,
CoatChex partnered with major brands, blending service and strategy. What began as a
pitch became a movement, and the lost coat that started it all. Just page one.
The rest of the story is still being written.
CoatChex on Shark Tank: A Snapshot of the Big Pitch

5. Here’s how CoatChex made its mark on national television:
Show Details Facts and Figures
Aired 2012: Shark Tank, Season 4, Episode 401
(or 402)
The Ask $200,000 for 10% equity, $2 Million
Valuation

6. The Pitch Derek Pacqué presents a digital,
ticketless coat check system
Investor Drama Mark Cuban offers $200,000 for 33%
The Decision Derek declines the deal to stay true to his
vision
The Impact No deal, but national exposure
skyrocketed the brand
Website Traffic Surge Thousands of Shark Tank fans visit
CoatChex after the show
Result Launched into new markets, CoatChex
begins its global journey
Fun Fact: Derek was just out of college when he pitched to the Sharks, proving age is no
barrier to bold ideas!

7. Turning the Page: Life After the Tank
chexology.com
Chexology, from One Lost Coat to a Global Vision
The Shark Tank lights dimmed, but the story of CoatChex was far from over. That
moment was only the prologue. Fueled by fresh investors and growing interest, Derek
Pacqué’s once-small idea began popping up in nightclubs and event venues across the
country. But as the technology grew, so did the vision, and the name “CoatChex” no
longer fit.
Chexology was born. A name that reflected more than coats. A name ready to travel.
One pivotal chapter unfolded at New York’s Museum of Modern Art. Every Friday, MoMA
faced long visitor lines. Their solution? Chexology’s custom-designed carousel system,
synced with iPads, transformed chaos into calm. Attendance soared. The lobby, once
crowded, became a space of ease.

8. Chexology now checks bags in hotels, simplifies rentals, tracks packages, and even
upgrades valet services. From Nike to the US Open, Barclays Center to Circa Las Vegas,
the company has become a silent force behind seamless experiences.
●​And to think, it all started with one forgotten coat.
●​Each project is a new page. Each client is a part of the plot.
●​So, where will you take the next chapter of Chexology?
Closing the Chapter: Final Thoughts on the Chexology
Journey
As we turn the final page of this story (for now), one thing is clear: what began as a lost
coat at a college bar became a tech solution that reimagined how we interact with
everyday services. Derek Pacqué’s CoatChex wasn’t just a product pitch; it was a
problem-solving mission rooted in real experience.
From college bars to the Shark Tank stage, and onward to global venues like New York
Fashion Week, MoMA, and Nike-sponsored events, the journey has been filled with
innovation, resilience, and bold decisions.
Quick Recap:
●​The Problem: Lost paper coat tickets at events.
●​The Solution: A digital, ticketless coat check system.
●​The Pitch: A high-stakes negotiation on Shark Tank, Season 4.
●​The Turning Point: Walking away from a deal with Mark Cuban.
●​The Evolution: From CoatChex to Chexology, expanding into hospitality,
luggage, rentals, and valet tech.
●​The Impact: Partnerships with global brands, modernizing guest experiences
across industries.
So ask yourself:
If one lost coat could start all this, what might your idea lead to?