Foam Party Hats Shark Tank Update – Shark Tank Season 12
Grace and Manuel Rojas brought their festive Foam Party Hats to the Sharks in Shark Tank Season 12 and secured a deal with Mark and Lori.
Mother/son entrepreneurial team Grace and Manuel Rojas hope to celebrate a deal for Foam Party Hats, their fun and festive hat company, in Shark Tank Season 12 Episode 5. The original idea came around 13 years ago at Manuel’s older sister’s wedding. Grace made a bunch of funky foam hats for the guests to wear on the dance floor. They were a big hit.
Check out other Shark Tank Season 12 Episodes.
About Foam Party Hats
| Category | Details |
|---|---|
| Business Name | Foam Party Hats |
| Founders | Grace and Manuel Rojas |
| Industry | Party Supplies |
| Product | Fun and festive foam hats |
| Funding | Self-funded |
| Deal Status | Deal secured with Mark and Lori |
| Investment Asked | $100,000 for 15% equity |
| Deal Outcome | $100,000 for 25% equity |
| Valuation | $1 million |
In 2010, the family immigrated to the United States (specifically Houston) due to the grim political situation in their native Venezuela. Grace used her life savings to put Manuel through college at the University of Houston, where he studied chemical engineering.
All the while, Grace made and sold her hats to friends and family and at some select local events. By the time Manuel graduated, Grace had a website up and was selling hats all over the world. In 2017, Manuel decided he wanted to get involved, and they formed Foam Party Hats, LLC.
While they have many stock styles, they’ve worked with many big companies and organizations to produce custom hats for specific events. The biggest challenge for Foam Part Hats has been production. They have strict quality standards and find it hard to get good employees. The company has no debt and is completely self funded.
Sales doubled from 2018 to 2019. They have hundreds of styles ranging in price from $12 to over $100. They are readily available on Amazon. Grace and Manuel likely want a Shark’s help growing the business and expanding production. Will a Shark want to wear an investor hat?
Video
Foam Party Hats Shark Tank Pitch
Manuel and Grace enter the Shark Tank seeking $100,000 for 10% of their business. They tell how the business started, and they show off their hats. Each Shark gets a custom hat: Lori has a jewelry box hat, Kevin has a chef Wonderful hat, etc. They have custom hats, too.
A $45 hat costs about $10 to make. The company does a big wedding business, but Covid-19 killed 80% of their sales, so they took their store to Amazon. At that time, Amazon’s sales were $6000.
In 2017, sales were $25,000; in 2018, they were $75,000; in 2019, they were $145,000. So far this year (as of August 2020), they have $153,000 in sales. Right now, everything is done by hand. Manuel wants the money to scale up. He got a lot of attention for his COVID-19 hat, which helped drive sales.
Did Foam Party Hats Get a Deal on Shark Tank?
Kevin thinks it’s a great family business, but he’s out. Mark says the biggest challenge is figuring out what business they’re in; he’s out. Manuel owns 20% of the company, and he still has a full-time job.
Daniel says he may invest if Manuel goes full-time. At that point, Robert goes out. Daniel offers $100,000 for 30%, and he says it’s not negotiable. Mark makes comments, and Daniel mocks him for being out.
Lori asks Daniel if he will take her on, and he says no. She asks Mark if he’ll go in with her at $100,000 for 25%. He says he’ll do it to mess with Daniel. Ultimately, they go with Mark and Lori.
Foam Party Hats Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. As of July 2021, the company is still in business and is thankful weddings are happening again. In January 2023, they’re going strong with over $1 million in annual revenue.
Update Segment
The company gets an update segment in the Shark Tank Season 14 Episode 16. In the update segment, Manuel says the whole purpose of this business is to have fun. For the three and a half years before Shark Tank, the company had $385,000 in lifetime sales.
In the two years after their appearance, they made $1.35 million in sales. Their hats are in over 750 Party City stores across the USA. With Mark’s investment, they could buy equipment that automates their manufacturing and allows them to scale.
The mother-son team also amplified their social media presence. They became TikTok influencers, with one video garnering over 3 million views.
Manuel thinks his mother had a lot of guts to migrate to America, and she says no matter what your situation, you can achieve your goals. It’s beyond their wildest dreams to have over $1 million in sales, and Manuel says, “We’re just getting started.”
More Updates
In July 2024, they sold 4th of July hats in 485 Wal-Mart locations across the Southern US. At that time, lifetime sales had topped $3 million.
The estimated net worth of Foam Party Hats is between $500K and $ 1.2 million.
Posts about Foam Party Hats on Shark Tank Blog
Where Can You Buy It?
Foam Party Hats are available for purchase on their official website and also on Amazon. Check out their social media for more updates: Facebook and Twitter.
Quick Summary
- Grace and Manuel Rojas present Foam Party Hats, their fun and festive hat company, on Shark Tank.
- They seek $100,000 for 10% equity to help scale their production.
- They secure a deal with Mark Cuban and Lori Greiner for $100,000 for 25% equity.
Want to know more about other businesses featured in the same episode? Check out their business updates!
