Surprise Cake Pop – Up Gift Cake Stand
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 6, 2020
Asking For:
$200,000 for 8%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Surprise Cake is a cake stand with a patented design that allows you to hide gifts inside cakes for various celebrations.
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Background Story
Jordan and Liz, a mom-and-son team from Newton, Massachusetts, presented Surprise Cake on Shark Tank. The idea for Surprise Cake came to Liz in a dream the night before her daughter’s 12th birthday. She wanted to hide her daughter’s birthday present inside the cake, but due to regulations, they couldn’t put non-edible objects inside confectionery products.
So, they came up with a solution – the patented popping cake stand, which allows gifts to be hidden safely inside the cake without violating any laws.Jordan had a background in law, working for the Department of Correction, while Liz had been an industrial engineer. They worked with a product designer to develop Surprise Cake over three years, and their journey led them to the Shark Tank seeking $200,000 for 8% equity in their company.
The Product
Surprise Cake is a cake stand designed to add excitement and a fun surprise element to celebrations. It features a patented design that allows you to hide gifts or small items inside a cake safely.
Users simply place their chosen gift in the cake stand before placing the cake on top. When it’s time for the celebration, a pull ring is used to reveal the hidden surprises.
The product can be used for various occasions, including birthdays, gender reveals, holidays, and even marriage proposals. It adds an element of anticipation and surprise to cake cutting, making the celebrations more memorable.
Surprise Cake is intended to be reusable, and they plan to expand their offerings to include curated gift pods to go inside the cake stand.
How It Went
The company’s position before Shark Tank
Surprise Cake started in 2018 and has shown consistent growth. In its first five months, the company achieved $10,000 in sales, and in 2019, they generated $280,000 in sales. Year-to-date, they reported $550,000 in sales, with a projected run rate of $900,000 for the year. Their net profit is estimated to be $50,000.
The company’s main product is the popping cake stand, which retails for $36.99, with an additional $7.99 for shipping. They also plan to expand their product line to include curated gift pods for different occasions.
The founders, Jordan and Liz, have invested their own capital and efforts into the business and have three and a half full-time employees. They have a utility patent for their product approved in the United States and have filed internationally in the EU, Canada, and Australia.
The Negotiations:
The Sharks were intrigued by Surprise Cake and the fun element it adds to celebrations. However, they were concerned when the founders mentioned their plans to enter the cake business, as it’s a different industry with various challenges.Kevin O’Leary, who has experience in the cake industry, advised against going into the cake business, as cakes have shelf-life and spoilage issues. He was the first to go out.
Mark Cuban emphasized the importance of chasing profits rather than just revenue and recommended against going into the cake business. He also didn’t see the need for curated gift pods. Daymond John and Barbara Corcoran both appreciated the concept but didn’t see themselves as the right partners for Surprise Cake.
Lori Greiner showed interest in the product and believed in its potential. She made an offer of $200,000 for 12% equity. However, the founders countered with 12%, and Greiner declined the counteroffer, ultimately leading to no deal.The founders left the Tank with confidence in their product and a determination to continue building their business despite not securing a deal on the show.
