Foam Party Hats Shark Tank Update

From Family Weddings to a Thriving Business: The Story of Foam Party Hats

Grace and Manuel Rojas, a dynamic mother-son duo, are excited to seal the deal for their colorful hat brand, Foam Party Hats, in Shark Tank episode 04 of season 12 of Shark Tank.

Foam party hats are fun and colorful accessories often worn at celebrations, festivals, and events. Made from lightweight foam material, these hats come in various shapes and designs, adding a playful touch to any gathering. 

They are popular for birthdays, themed parties, and corporate events, helping to create a lively atmosphere. Foam party hats are comfortable and easy to wear, making them a favorite choice for partygoers looking to stand out.

The idea for Foam Party Hats sparked about 13 years ago at Manuel’s older sister’s wedding. While everyone was dancing, Grace whipped up some fun foam hats for the guests, and they were a hit!

In 2010, their family moved to Houston, Texas, to escape the tough political situation in Venezuela. Grace worked hard to fund Manuel’s education at the University of Houston, where he studied chemical engineering.

During this time, Grace kept making and selling her hats to friends and family and even set up an online shop that allowed her to reach customers around the globe.

In 2017, Manuel decided to dive into the family business and officially founded Foam Party Hats LLC. They offer a wide range of stock styles and have collaborated with big companies to create custom hats for special events.

However, they’ve faced challenges with production, as they maintain high-quality standards and sometimes struggle to find qualified staff.

Despite these hurdles, the business is debt-free and self-sufficient. From 2018 to 2019, their sales more than doubled, and they now have hundreds of hat styles available, with prices ranging from $12 to over $100. You can easily find their hats on Amazon.

Foam Party Hats Shark Tank Net Worth

Foam Party Hats specializes in creating fun, whimsical foam hats for all sorts of occasions. Their main markets include weddings, birthday parties, and corporate events, but they also make hats for festivals, performances, sporting events, and cruises. 

With over 600 different designs to choose from, customers can even create their unique hats, including some themed around COVID!

This creative venture started when Grace and Manuel, who immigrated to the U.S. in 2010, decided to turn a fun idea into a business. After five years of hard work, Manuel graduated as a chemical engineer from the University of Houston.

Grace spent over a year perfecting her hat designs to help support her son through college. She sold them to family and friends and at local events, all while juggling living expenses and tuition costs.

Grace’s journey began when she organized her daughter’s wedding, Hora Loca, a lively celebration that’s a staple in Latino weddings. She wanted to surprise the newlyweds and their guests, which was no small task given the energy of the event. 

The Hora Loca, or “crazy hour,” is all about bringing that vibrant spirit to the reception, inspired by festive traditions from Spanish New Year’s Eve celebrations.

When the music kicks up and the strobe lights flash, guests are invited onto the dance floor with fun props like Venetian masks, noisemakers, glow sticks, and, of course, the fabulous foam hats.

Grace’s creativity shone through as she designed unique, colorful hats that were not only lightweight and comfortable but also big enough for two people to wear at once—perfect for photo booths!

The hats took the Crazy Hour to a whole new level, quickly becoming a favorite party favor. Before long, Grace found herself with a growing list of people wanting her hats, leading to a successful side business.

After moving to Houston during Venezuela’s economic crisis, Grace, a former teacher with degrees from Venezuela and California, found a new passion in making hats. 

She built her business through word-of-mouth, and thanks to her tech-savvy skills, she even created her website.

By the time Manuel graduated, their hat business was thriving, reaching customers in all 50 states and even selling to big names like Google and the Mardi Gras in New Orleans. 

Seeing the potential, Manuel joined forces with his mother, and together they launched Foam Party Hats LLC.

Foam Party Hats Shark Tank Pitch: Manuel and Grace’s Foam Party Hats Make a Splash with Investors

Manuel and Grace stepped into the Shark Tank, hoping to secure $100,000 in return for a 10% equity stake in their business, Foam Party Hats. They shared the inspiring journey behind their company while showcasing their unique headwear creations.

Each Shark received a specially designed hat, including Lori’s jewelry box hat and Kevin’s Chef Wonderful hat. The duo also emphasized their custom-made offerings, appealing to a wide range of customers.

The production cost for a hat priced at $45 is around $10. Foam Party Hats is particularly recognized for its wedding services, but the pandemic severely impacted its revenue, cutting it by 80%. 

In response, they pivoted to selling on Amazon, where they generated $6,000 in sales last month alone.

Their sales history shows growth: $25,000 in 2017, $75,000 in 2018, and $145,000 in 2019. By August 2020, they had already reached $153,000 in sales for the year. 

Currently, all production is done by hand, and Manuel aims to use the investment to scale the business. The attention garnered from their COVID-19-themed hats also contributed to a boost in sales.

Foam Party Hats Shark Tank Pitch: Manuel and Grace's Foam Party Hats Make a Splash with Investors

Kevin praised the family-oriented nature of the business but ultimately opted out of investing. 

Mark expressed concerns about the company’s direction and decided to step back as well. 

Manuel holds a 20% stake in the company and continues to work full-time elsewhere. Daniel indicated he might consider investing if Manuel commits to the business full-time.

At this point, Robert exited the discussion. Daniel then offered $100,000 for a 30% stake, making it clear that his offer was firm. 

Mark chimed in with some comments, leading Daniel to tease him for his absence. Lori, looking to collaborate, asked Daniel if he would consider hiring her, but he declined.

In a surprising twist, Lori proposed that Mark join her in investing $100,000 for a 25% stake. Mark agreed, motivated partly by the chance to outshine Daniel. Ultimately, they decided to partner with Mark and Lori, sealing the deal.

Final Deal: Mark Cuban And Lori Greiner agreed to invest $100,000 for 25% equity in Foam Party Hats.

Foam Party Hats After Shark Tank: A Celebration Essential

Foam Party Hats have captured the attention of customers across the United States, as well as major events like Mardi Gras in New Orleans and even Google. This popularity isn’t surprising, considering the company’s extensive product offerings.

No matter the occasion—be it sports events, holidays, weddings, or bar mitzvahs—Foam Party Hats provides an array of fun and eye-catching hats that are sure to make any celebration memorable. 

Grace and Manuel, the creative minds behind the brand, have supplied hats for various events, including the Chinese New Year, St. Patrick’s Day festivities, and Oktoberfests.

One of the best features of Foam Party Hats is their versatility as party favors. Guests will love taking home these colorful and whimsical hats. 

Beyond hats, the company also offers other head accessories such as wigs, headbands, and stylish vintage hats. 

With designs ranging from floral and animal prints to quirky patterns and pop culture favorites, there’s something for everyone.

Foam Party Hats Shark Tank Net Worth

Currently, Foam Party Hats sells their products exclusively online through Amazon and their official website, with prices ranging from $10 to $69. 

While wedding hats that cater to both the bride and groom may be on the pricier side, the quality justifies the investment. Additionally, party packages are available for those looking to elevate their celebrations.

Since their debut on Shark Tank in November 2020, Foam Party Hats has continued to innovate, recently adding foam shields for children. These playful designs include a dog, a lion, and an adorable bunny, making them perfect for kids’ events.

Foam Party Hats is thriving, especially with weddings making a comeback, and they are excited to be a part of these joyous occasions.

Foam Party Hats is still in business with an estimated net worth of $5 million. Whether you’re planning a grand celebration or a small gathering, Foam Party Hats has the perfect accessory to add a touch of fun!

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