Foam Party Hats Before Shark Tank
Foam Party Hats is a company that makes and sells unique foam hats. The hats are available in a variety of designs based on many different themes and occasions. Some of these themes and occasions are birthday parties, weddings, animals, holidays, sports, and many more. They even sell foam wigs and headbands as well. On the business’ website, there is an option to submit a request for a custom made hat, if the ones on the website aren’t what you’re looking for. Prices for the Foam Party Hats products start at as low as $14.99; however, the price may increase depending on the hat being purchased.
Grace Rojas and her son, Manuel Rojas, founded Foam Party Hats in 2010 in Caracas, Venezuela. Grace is a graduate from UCAB, Universidad Catolica Andres Bello, where she gained her bachelor’s in education. She the studied to gain her master’s degree in education from the University of the Pacific. Now, Grace designs the hats for Foam Party Hats. Her son Manuel, on the other hand, helps her with the marketing aspect of the company. As far as his background prior to Foam Party Hats goes, he has worked within the chemical engineering industry.
Grace got the idea to create Foam Party Hats while she was planning what to do for her daughter’s wedding. Knowing she wanted to do something more unique than what’s been done at other weddings, she decided to do a Hora Loca theme with the foam party hats. After the wedding, many visitors came up to Grace, asking her where the hats could be purchased. At the time, Foam Party Hats were only available for purchase in Venezuela; however, Grace and Manuel moved to the United States and started selling them in other areas. The business officially started in 2017 in Houston, Texas, after Manuel joined the company.
Since the business launched, Foam Party Hats have had various partnerships with well-known companies that wanted to have these hats created for certain events. Just within one year, the business had made an incredible amount of sales. Their sales doubled within just a year. Although the business is doing alright, the founders have found that their production levels could be better. Due to this, they are applying to appear on Shark Tank with the hopes that an investor will help them better their production and expand the Foam Party Hats business.
Foam Party Hats on Shark Tank
Grace Rojas and her son, Manuel Rojas, appeared on Shark Tank during episode 5 of season 12. They are searching for a deal of $100,000 in funding for a 15% stake in Foam Party Hats in return. The entrepreneurs begin pitching their unique party hats after giving each shark a customized hat to wear. After an entertaining pitch, the sharks seem to already like the idea of this business. While Grace and Manuel have done well for their business thus far, their sales are a little lower than they’d like them to be. For instance, the founders only did $25,000 in sales during 2017; $75,000 in 2018, and $145,000 in 2019. At the time of filming, in 2020, Foam Party Hats was sitting at $153,000 in sales; however, that may increase after the show airs.
After the founders talked about their sales, most of the sharks backed out of the offer. Nonetheless, Grace and Manuel did still receive a few offers. Their first offer came from guest shark, Daniel Lubetzky, who presented them with $100,000 in return for a 30% stake in the hat business. In addition to this offer, Daniel also requested that Manuel quit his job to work for Foam Party Hats full-time. While the founders were certainly considering accepting Daniel’s deal, they held off to see if any other sharks would make them an offer. Lori Greiner and Mark Cuban then decided to partner up and offer Grace and Manuel $100,000 in return for a 25% stake. The founders accepted Lori and Mark’s deal.
Foam Party Hats Now in 2023 – The After Shark Tank Update
After Grace and Manuel Rojas left the tank with a deal from Lori Greiner and Mark Cuban, the deal has not appeared to have closed yet. As of 2023, the business is still going and the founders have launched many new unique designs on their website. Now, customers can sort through more than 600 hat designs on the business’ website, or they can customize their own right on the website as well. Additionally, the hats are still available on the website and on Amazon, where the prices varying depending on the product. So far this year, Foam Party Hats has made $1 million in annual revenue, but this number may increase if the hats continue to rise in popularity.