Grace and Manuel Rojas, a mother-and-son entrepreneurial duo, made a splash on Shark Tank in Season 12, episode 1204, with their vibrant and whimsical business, Foam Party Hats. Their mission? To bring joy and fun to events through their unique, festive foam hats.
Highlights
- Founders: Grace and Manuel Rojas
- Product: Fun and festive foam hats
- Investment: Secured $100,000 for 25% equity from Mark Cuban and Lori Greiner
- Key Growth: Lifetime sales exceeded $3M by mid-2024; hats sold in 750+ Party City and 485 Walmart locations
- Social Media Impact: TikTok videos garnered millions of views, boosting brand visibility.
Overview
| Category | Details |
|---|---|
| Company Name | Foam Party Hats |
| Industry | Party Supplies |
| Founded | 2017 |
| Sales Growth | $385K (pre-Shark Tank) to $1.35M (post) |
| Retail Partners | Party City, Walmart |
| Social Media | TikTok influencers with viral videos |
| Milestone | Automated manufacturing with Shark aid |
The Pitch
In their Shark Tank appearance, Grace and Manuel sought $100,000 for 10% equity, valuing their company at $1 million. Their pitch highlighted the origins of their business: a creative idea born 13 years prior during Manuel’s sister’s wedding. Grace had crafted funky foam hats for the wedding guests, which became an instant hit.
The duo’s entrepreneurial journey began in earnest after immigrating from Venezuela to Houston in 2010, seeking a brighter future amid political turmoil. Grace, using her life savings, supported Manuel through college while building her foam hat business. After Manuel graduated with a degree in chemical engineering from the University of Houston, he joined forces with his mother in 2017 to establish Foam Party Hats, LLC.
The Sharks React
During the pitch, each Shark was gifted a custom foam hat that showcased the company’s creativity. Lori Greiner received a jewelry box hat, Kevin O’Leary sported a chef-themed hat, and others donned equally entertaining designs. The pair shared their impressive sales growth:
- 2017: $25,000
- 2018: $75,000
- 2019: $145,000
- 2020 (as of August): $153,000
Despite setbacks caused by the COVID-19 pandemic, including an 80% drop in wedding-related sales, the company pivoted successfully to Amazon, driving new sales. They revealed a profit margin of $35 per hat on a $45 product, with everything handcrafted. Their goal was to scale production with the Sharks’ help.
After deliberation, Mark Cuban and Lori Greiner partnered on a deal, offering $100,000 for 25% equity, with plans to help the Rojas family automate manufacturing and expand their reach.
Growth After the Tank
The appearance on Shark Tank was transformative for Foam Party Hats. In the three and a half years before their episode aired, the company had generated $385,000 in lifetime sales. In the two years following their appearance, they exceeded $1.35 million in sales. By July 2021, the company was thriving, bolstered by the return of weddings and other events.
Key Milestones
- Automated Production: With Mark Cuban’s investment, the company acquired advanced manufacturing equipment, improving efficiency and scalability.
- Retail Expansion: Their foam hats became available in over 750 Party City stores across the U.S. By mid-2024, they were also featured in 485 Walmart locations, particularly across the Southern U.S.
- Social Media Growth: Embracing platforms like TikTok, the duo became influencers in their niche, with one viral video reaching over 3 million views. This significantly boosted brand visibility.
- Sales Growth: By July 2024, lifetime sales had surpassed $3 million. Annual revenue had exceeded $1 million by 2023.
The Heart of Their Success
Foam Party Hats is more than a business—it’s a testament to resilience, creativity, and the American Dream. Grace’s determination to build a new life for her family and Manuel’s commitment to scaling their business reflect their drive to inspire joy through their products. As Manuel put it, “The whole purpose of this business is to have fun.”
With their unique hats in demand nationwide and an ever-growing presence in retail and social media, Grace and Manuel Rojas are proof that hard work and ingenuity can turn even the simplest idea into a multimillion-dollar enterprise. And as they proudly say, “We’re just getting started!”
Foam Party Hats exemplifies the power of creativity, determination, and adaptability in building a successful business. Grace and Manuel Rojas turned a simple idea born at a family wedding into a thriving enterprise with millions in sales, partnerships with major retailers, and a growing social media presence. Their journey from humble beginnings in Venezuela to entrepreneurial success in the U.S. is an inspiring story of resilience and innovation.
Through their Shark Tank experience, they not only gained financial support but also the mentorship and resources needed to scale their business. Their ability to pivot during challenging times, like the COVID-19 pandemic, highlights their resourcefulness and commitment to their vision.
Foam Party Hats is more than just a company; it’s a celebration of joy and creativity, embodying the belief that with passion and perseverance, even the simplest ideas can make a big impact. As they continue to expand their reach and grow their brand, Grace and Manuel remind us all that no dream is too big to achieve.
Conclusion
Grace and Manuel Rojas turned a creative idea from a family wedding into Foam Party Hats, a multimillion-dollar business offering vibrant foam hats. Their inspiring journey from Venezuela to the U.S. highlights resilience and adaptability, as they grew sales from $385,000 pre-Shark Tank to over $3 million by mid-2024. Securing a $100,000 investment from Mark Cuban and Lori Greiner, they scaled production, expanded into Party City and Walmart, and leveraged TikTok for viral success. Their story is a testament to the power of creativity, determination, and the joy of bringing smiles to people’s lives.
