Shark Tank Said ‘No’ to Their Cake — So They Baked Up a Fortune Without Them
When mother-son duo Liz Charm and Jordan Long stepped into the “Shark Tank” on season 12, they brought with them an innovative twist on a timeless celebration centerpiece: the birthday cake.
Their company, Surprise Cake, featured a patented popping stand that allows gifts to be hidden inside cakes, creating a magical moment when the gift cylinder dramatically pops up during celebrations. Despite their enthusiasm (which included them popping out of a large-model cake) and impressive sales figures, the Sharks ultimately passed on the opportunity to invest in what would become a multimillion-dollar success story.
The idea for Surprise Cake was born from a mother’s creativity.
Charm had a dream about hiding her daughter’s birthday present inside a cake the night before her 12th birthday. She made it a reality the next day, concealing a new cellphone in her daughter’s birthday cake and calling it while her daughter was blowing out the candles. The resulting surprise delighted everyone at the party, and Charm immediately recognized its business potential.
“Revolutionary product has reinvented the ultimate party traditions, taking cake and gift giving to the next level,” proclaimed Jordan as he pitched to the sharks.
This innovation wasn’t without challenges, however.
American food safety regulations (what Charm called the “Kinder Egg law“) prohibit placing non-edible objects inside edible confections. Rather than abandon the concept, Charm partnered with her son Jordan, an industrial engineer, to design a cake stand with a hidden compartment that creates the illusion of a gift popping directly out of the cake.
When they appeared on “Shark Tank” in 2020, the entrepreneurs were seeking $200,000 for 8 percent equity in their company.
At that time, they had already achieved impressive sales numbers: $10,000 in their first five months, $280,000 in 2019, and were on track for $900,000 in annual revenue. Their profits were dismal at only $50,000.
Upon hearing the numbers, the Sharks expressed concerns about the entrepreneurs’ ability to generate profit and their plans to expand beyond merely selling popping stands to include pre-made cakes and curated gift packages.
Kevin O’Leary, who had experience in the cake business with Wicked Good Cupcakes, warned them about the logistical challenges of shipping perishable items.
Mark Cuban was particularly critical of their expansion strategy, telling the duo, “You’re chasing revenue and not chasing profits. And so for those reasons, I’m out.”
One by one, the other Sharks followed suit, leaving the entrepreneurs without a deal.
Undeterred by the Sharks’ rejection, Charm and Long continued building their business.
Today, Surprise Cake is thriving with annual revenue between $1 million to $2 million and an estimated company valuation of $3.5 million as of 2024, according to SharkTankBlog.com.
The basic popping cake stand that once sold for $36.99 now commands $59.99, reflecting increased demand and consumer willingness to pay premium prices for their unique product, FoodRepublic.com reports.
The company has significantly expanded its product line beyond the original popping stand.
They now offer a two-in-one popping cupcake stand with three tiers that can hold 18 cupcakes and a hidden present, music box triggers that play tunes when the surprises pop out, and specialized cake carriers for easy transport.
Surprise Cake has also successfully implemented the very expansion strategy the Sharks doubted. They now sell pre-made 4-inch cakes in a dozen different flavors that come in boxes designed to shoot confetti when opened.
Customers can customize these cakes with photos, handwritten phrases, gift cards, champagne, stuffed animals, and more, with prices starting at $54.99.
Their digital presence has flourished as well, boasting 123,000 followers on Instagram.
While social media is good, it’s the products that are the stars. Their musical cake stand maintains a stellar 4.4 out of 5 rating from nearly a thousand reviews on Amazon and sells for $84.99.
Their products have been featured on major platforms, including “Today,” “Good Morning America,” and Unilad, with “Today” even including them on their list of “Insta-famous gadgets worth checking out.”
In reflecting on their Shark Tank experience, Long told his alma mater USC Viterbi School of Engineering that despite not securing a deal simply appearing on the show was valuable.
“As far as marketing, 10 minutes of prime-time television is every business’s dream,” the son said.
The national exposure helped introduce millions of viewers to their unique product and undoubtedly contributed to their subsequent growth.
The story of Surprise Cake demonstrates that sometimes the best business decisions involve trusting your instincts even when experienced investors doubt your vision. This is something the founders of the Lip Bar, also rejected on the show, can attest to.
By staying true to their original concept while strategically expanding their product line, Charm and Long built a thriving business that continues to bring joy to celebrations nationwide, proving that the sweetest success often comes to those who persist in the face of rejection.
Shark Tank Said ‘No’ to Their Cake — So They Baked Up a Fortune Without Them