Where is Foam Party Hats now? Mother-son entrepreneurial duo pulls millions in sales after 'Shark Tank'
LOS ANGELES, CALIFORNIA: Following the rejection of a deal from Shark Daniel Lubetzky, Foam Party Hats entered into a partnership with Sharks Mark Cuban and Lori Greiner. Now that ABC viewers are eagerly anticipating an update on the company in Episode 15, let's take a look at how it is currently thriving.
ABC's 'Shark Tank' is the ideal venue for aspiring businesses to pitch their ideas and products to a group of industry titans known as "Sharks" in exchange for an investment in their ambitions. The hobbyists recognize that their ideas have the potential to become a company one day, potentially worth millions of dollars. The businesses need the Sharks because they lack the resources to expand. However, the Sharks are not easy to please, and with each season introducing new levels of innovation, the stakes are even higher. Foam Party Hats arrived, hoping to overcome all hurdles and stroll away with a once-in-a-lifetime deal. Scroll down to get a quick recap of the pitch and where the company is standing now.
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What happened during their time on 'Shark Tank'?
Mother-son entrepreneurial team Grace and Manuel Rojas entered the Tank looking for $100,000 for 10% of their company. They explained how the company got established and displayed their headwear. Each Shark received a unique headwear. A $45 hat costs approximately $10 to manufacture. The firm did a lot of weddings, but Covid destroyed 80% of their sales, so they moved their shop to Amazon. Their previous month's sales before they appeared on 'Shark Tank' was $6,000.
In 2017, sales were $25K; in 2018, sales were $75K; and in 2019, sales were $145K. They had $153K in revenue by August 2020. Everything was done by hand until they debuted on 'Shark Tank'. Manuel desired the funds in order to expand. He received a lot of attention for his Covid hat, which aided in sales.
Shark Kevin O'Leary believed it was a fantastic family business, but he decided not to make a deal. Mark said the most difficult part was finding out what business they were in, so he sat out as well. Manuel owned 20% of the business while working full-time. Daniel stated that if Manuel went full-time, he might invest. Shark Robert Herjavec sits out from making a deal too. Daniel proposed $100,000 for 30% and stated that it is non-negotiable. Mark made remarks, and Daniel made fun of him for being out. Lori asked Mark if he'd join her at $100,000 for a 25% stake. He said he'd do it to annoy Daniel. They ultimately chose Lori and Mark.
Where is Foam Party Hats now and how is the company faring today?
The episode of 'Shark Tank' about Foam Party Hats broadcasted on ABC in November 2020. Foam Party Hats has extended its product line to include foam shields for children since its inception. The items can be purchased and stocked in three animal designs: a cute bunny, a lion, and a dog.
Foam Party Hats not only have clients from every state in America, but they have also captured the interest and business of Google and the Mardi Gras celebration in New Orleans. Grace and Manuel have provided headwear for Chinese New Year, St Patrick's Day celebrations, and Oktoberfests. And, best of all, Foam Party Hats make excellent celebration gifts. Aside from headwear, the company also sells head accouterments such as wigs, headbands, and opulent antique caps. Foam Party Hats has something for everyone, from flowery to animal print, geeky patterns to pop culture's favored styles.
Their products are currently only accessible online - on Amazon and their main website. And each of their pieces costs between $10 and $50. If you're looking for a bride and groom matched hat, it's a little more costly, but given their stringent quality standards, it appears to be worth it. On their website, you can also discover party bundles, which are, of course, more expensive.
During their pitch, the business was valued at $666,667, and with investments from two Sharks, the company was valued at $400K. Despite this significant drop in value, yearly revenue for 2021 is a promising $223,353, indicating that the net worth has most likely grown since then. By 2022, the business had a net worth of $400K; by January 2023, they had over $1 million in annual sales, demonstrating their dedication to success.
Mark and Lori did not complete the deal and instead departed the pitch with an offer from the two Sharks. However, the business is still in operation, with yearly revenue of $223,353 as of December 2021.
'Shark Tank' Season 14 Episode 15 features an update segment on the business.
'Shark Tank' Season 14, Episode 15 airs on ABC on Friday, March 3, 2023, at 8 PM ET. Catch the latest episode featuring products like Eat Your Flower, Big Mouth, Surf Band Pro, and Youth Foria and an update on Foam Party Hats.
Missed an episode? Been wanting to catch up? Episodes can also be viewed the next day on demand and on Hulu. Not just that, you can also watch old seasons and episodes on Amazon Prime Video and iTune.