Shark Tank update: What happened to CoinOut after the show?

In 2018, Jeff Witten, the founder of CoinOut, appeared on episode 23 of Shark Tank season 9. He sought a $250,000 investment from the sharks in exchange for a 7.5% stake in his company, valued at around $3.3 million. Jeff intended to digitize loose change using CoinOut, helping people manage their money more efficiently.

CoinOut required its members to use a plastic card that could store change after paying with cash at participating vendors. While Jeff believed it would help reduce the problem of handling "pesky pennies," the sharks remained unconvinced. They raised concerns about competing with other major financial institutions and doing business with the retailers.

Despite getting questioned by the sharks, Jeff received three offers. He ultimately shook hands with Shark Tank star Robert Herjavec at $250,000 for 15% equity.

Although CoinOut's deal with Robert fell through after Shark Tank, the company continued to grow. Jeff remodeled CoinOut shortly after filming the episode, turning the card-based operation into a cash-back rewards app that catered to customers who sought rewards after scanning their receipts with their phones.

In 2021, CoinOut was acquired by Information Resources, Inc. (IRI) and is currently owned by them. Although Jeff parted ways with CoinOut in 2022, giving up the CEO's position, the app remains functional and can be found on Google Play and the App Store.

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Shark Tank: Jeff Wittens re-engineered CoinOut's model and turned it into an app

Jeff's business model was initially challenged by the sharks who were unsure about its potential in the market. When Kevin O'Leary asked Jeff how he could "cash out" his stored change, the entrepreneur explained there were four viable options: he could have the money transferred to his bank account, donated to a charity, turned into an Amazon gift card, or redeemed at a store.

Upon hearing that, Kevin asked Jeff why he would not get "crushed like a cockroach" while competing with other well-known and established payment operators. However, Jeff was confident they would survive the competition because of their unique technology, banking relationships, and regulatory structure.

When Robert asked how Jeff made money through CoinOut, Jeff explained that merchants paid a $20 monthly fee for using the product. Additionally, he earned 3% from each transaction. Despite facing the sharks' questions, Jeff remained steadfast, convinced the company had potential. He added that CoinOut's technology could sell user purchasing data to advertisers.

He ultimately received an offer from Barbara Corcoran, who offered $250,000 for 15% equity with the contingency that CoinOut secured 700 new retail locations within six months. While Kevin sought a 25% stake in the company for the $250,000, Robert asked for a 15% stake. After much deliberation, Jeff finalized a deal with Robert.

Despite securing a deal on Shark Tank, Jeff's partnership with Robert fell through after the show. Shortly after filming the episode, CoinOut's model was re-engineered and turned into an app that catered to customers looking for cash-back rewards by scanning receipts with their phones. It helped Jeff sell consumer behavior data to other major businesses.

By 2021, the company received over 3 million monthly receipt scans, which translated to a reported annual revenue of $12 million. Later in the same year, CoinOut was acquired by IRI, a market data and analytics firm that had partnered with major retailers like 7Eleven, CVS, Krogers, Speedway, and more.

In 2022, Jeff left CoinOut and now advises and invests in start-up companies. CoinOut is still owned by IRI and is available to download from Google Play and the App Store.

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Shark Tank season 16 airs new episodes on Fridays at 8 pm ET only on ABC.