What Happened to CoinOut After Shark Tank?
What is CoinOut?
CoinOut is smartphone software that rewards users in a straightforward manner. Scanning in-store receipts into the CoinOut app is all that is required to get randomized rewards.
CoinOut has also changed the way we save our change. The app uses purchase data to present accessible and relevant discounts to users.
Jeffrey Witten, the creator of CoinOut, graduated from Columbia University with a Master of Business Administration. He has previously worked as an associate, an advisor, and in marketing.
Witten has worked as an Entrepreneur in Residence with Conversion Capital as well as on the executive advisory board of a commercial, legal, and public policy organization.
Witten is a young and successful New York entrepreneur who studied law but couldn’t envision himself working as a corporate lawyer in a courtroom.
Who is the CoinOut creator?
CoinOut’s creator, Jeffrey Witten, holds a Master of Business Administration from Columbia University. He has previously worked as an associate, an advisor, and in marketing.
Witten joined Google in 2013 and works in the realm of mobile payments. He had envisioned an app that would make it simple for both businesses and customers to exchange money.
When CoinOut originally launched in January 2017, it only worked with a select few stores; now, users may earn cash back on any receipt.
CoinOut works in two ways. Customers can earn cash back on any transaction using the first method. Simply scan their receipt in the app, and the money is immediately added to their account. There is a daily limit of three scans.
The second approach is to contribute funds to your CoinOut account through a merchant that has signed up for the service.
When purchasing with cash, customers can have their change put into their account. They may also use their balance to make purchases at these participating places. Each account is linked to a mobile phone number.
When a customer wishes to pay out, they utilize the cash out button on the app. They may donate the money to a charity digitally, receive an Amazon gift card, or have it sent into their bank account.
Signing up requires no financial information other than creating a bank account to receive money. Customers could only scan receipts from specific shops when the app first launched. They may now get money back on any receipt.
All of the app store reviews are quite positive. People like earning money for doing something they already do, and retailers like the convenience.
Many small firms find it tough to make adjustments, but this software makes it easier. Consumers can utilize it for free. To add CoinOut in their payment processing system, merchants pay a monthly fee of $10.
What Happened to CoinOut’s Pitch on Shark Tank?
Witten chose to pitch his idea to Shark Tank investors in Season 9 Episode 23 of CoinOut on Shark Tank in order to grow his merchant list.
Jeff entered the Shark Tank seeking a $250,000 offer for a 7.5% ownership in his firm, which is worth $3.3 million.
Before taking questions from the Sharks, he explains how it works. Kevin O’Leary was interested in learning how he may avoid being crushed by a huge payment processor.
While the processing industry feels that cash was evaporating, Jeff argues that it is not; Mark Cuban agrees. Retailer loyalty programs are also advantageous. Retailers pay a monthly charge of $20 plus a 3% transaction fee.
Mark Cuban, the first Shark to exits, says Jeff isn’t looking at the big picture. Lori Greiner likes the concept, but she isn’t sure how she will get her money back, so she also went out.
Barbara Corcoran believes Jeff will be successful and has promised Jeff $250,000 in return for a 15% stake in the company if he signs up 700 businesses by the end of 2018.
Despite the fact that the year was just halfway through, Jeff doesn’t appear hopeful about reaching his target. Kevin O’Leary makes an unconditional offer of $250,000 for 25% equity shares.
Then, based on the success of a pilot with a large store, Robert Herjavec offers $250,000 for 15% ownership shares. Jeff replies with a $250,000 offer for a 10% stake in the company.
Despite Robert Herjavec’s reluctance, Jeff counter-offered with a 12.5 ownership, and Robert refused to back down. Finally, Jeff accepted Robert Herjavec’s offer and left the pitch with a deal.
What Happened to CoinOut after it was featured on Shark Tank?
After the episode aired on Shark Tank and Jeff left the pitch with a deal, the deal with Robert was never consummated. In 2021, the app’s monthly user base had risen to over 3 million scanned receipts.
IRI Worldwide paid an undisclosed amount to acquire the company in March 2021. As of November 2021, their annual revenues are $12 million.
CoinOut’s Competitors
Rollbar, Pingdom Visitor, Pingdom AB, Heroku, and New Relic Browser are the company’s rivals.
CoinOut’s Net Worth
During the pitch, the firm was valued at $3.3 million; since then, it has been bought by IRI Worldwide for an undisclosed sum. Furthermore, the firm makes $12 million in revenue in 2021.
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CoinOut FAQs
What Technologies Are You Using?
They have been using AngularJS, Node.js and MongoDB on the front-end, and we have been using Java on the back-end. They are also currently transitioning to AWS Elastic Beanstalk in order to address scalability issues with their service.
How Are You Improving Security?
CoinOut has employed an application firewall that scans every packet entering and exiting their service.
What Is the Company’s Revenue Model?
The company has a subscription-based model with a 3% transaction processing fee.
How does CoinOut work?
By scanning the barcode on the receipt, customers can earn cash back on any purchase through their app. They may use their balance to pay for merchandise at participating businesses.
What is the target audience of CoinOut?
CoinOut’s target audience is street merchants and those who frequent small retail stores.
How much of a percentage of the economic pie do app developers actually capture?
According to the Bureau of Labor Statistics, app developers earn an average salary of $105,000 annually.
Is CoinOut really work?
Yes, it really is work!
Do you need a website to start using CoinOut?
Nope. They have a few different payment providers that user can use without a website, just an email address and phone number.
How many bars are in the app?
A lot. They currently have over 300 merchant partners who will scan any barcode.
Can one person use the service?
Yes! One person can scan receipts on their own phone and earn money as they go shopping at their favorite retail stores.
Is CoinOut a subscription plan?
No. There are no subscription plans at the moment.
What type of phone is CoinOut use?
Any smartphone that has a camera is capable of using the app. IOS and Android are both supported.
