Black Paper Party Net Worth Shark Tank Update

Christmas is loved by all Christians belonging to any race in this world, whether they are black or white, it doesn’t matter. The best part about Christmas are gifts. However, black people in America often don’t find Christmas accessories matching their culture and even end up paying 15% more than an average white American.

Jasmine Hudson, Madia Willis, and J’Aaron Merchant, the owners of Black Paper Party, have introduced the right kind of accessories for Black Americans. Their products are culturally relevant and include wrapping paper, ornaments, gift bags, and decor. They have also introduced black papa, nana Klaus, Aunt Holly, angels, gnomes, and Klaus babies to celebrate Christmas equally for the other cultures.

The owners came on Shark Tank to request $250K in exchange for 5% of their company. They also presented the sharks with their Black Paper Party accessories to impress them. Let’s see if they got the deal or not.

Black Paper Party Net Worth Shark Tank Update

Jasmine, Madia, and J’Aaron were looking for an investment of $250K in exchange for 5% equity in the company. At the time of the episode, they valued their company at $5 million. They successfully secured a deal with Barbara Corcoran for an investment of $250K for 10% equity in the company. The investment adjusted the company’s net worth to around $2.5 million. After the show was aired, the company experienced a good boost in exposure. As per my rough estimate, the current net worth of Black Paper Party in 2024 is around $7.5 million.

Shark(s) name	Offer & Demand	Counteroffer	Accepted?
Kevin O’Leary	Out	N\A	N\A
Mark Cuban + Barbara Corcoran	$50K for 20% equity	$50K for 22% equity	No
Lori Greiner	Out	N\A	N\A
Barbara Corcoran	$250K for 5% equity	$250K for 10% equity	yes
John Daymond	Out	N\A	N\A

The Owner’s Backstory

J’Aaron recently worked on pre-visual development for Disney Junior’s “The Mermaid”. Madie was a textile designer for many years at Target. Additionally, she was also into product development and sourcing manager at Walmart. Jasmine started her career as an associate merchant with Bakeware and then she got into merchandise financial planning, thus having $2.3B worth of home decor.

Now, they all are working as owners of Black Paper Party to easily facilitate the Black Americans with the perks of Christmas.

Initial Pitch

The owners came on the show to seek $250K for a 5% equity stake. Their products are culturally friendly Christmas décor items that come in handy for all Black Americans. They offer all types of Christmas items including wrappings, ornaments, and gift bags with black themes.

Queries about the Product

Kevin asked the first question about the number of SKUs their business has. Jasmine replied that they have around 200 SKUs, including D2C and their licensed product.

He also wanted to know about the creative designer for the business. J’Aaron highlighted that she is the one who designs all the things in the black paper party universe and afterward, Madia takes those designs and gives them a pattern.

Kevin also asked if they sell their products in retail. Madie answered in the affirmative and further added that they will be in six retailers this Christmas holiday. These retailers include Macy’s, Target, Walmart, Family Dollar, and Dollar General.

Cuban asked about their product display in the number of retailers. Jasmine replied that they would be in around 6K distributions.

Lori then inquired about their sales. Jasmine highlighted that in 2020 their sales were $44K when they were not in sales yet.

In 2021, it was about $274K and $844K in 2022, and their projected sales for this year will be $1.1M.

Kevin was curious to know if they made any profit on the $844K sales of 2022. The co-owner highlighted that their gross margin was 53% that year and their net was about $158K. So, the profit was about 14% on that.

Kevin also wanted to know about their estimated profit on the project’s $1.1M sales. Jasmine related that it would be about $150K with gross margins of about 65%.

She also added that this year 57% of sales will come from wholesales, 16% from D2C (Direct to Consumer), and 27% from licensed.

Cuban asked about their selling rates for wrapping paper to D2C and the cost of making one. She pointed out that they sell it for $10 and it costs them $2.33 to make a unit. The best part is that their product price is comparable to the ones found in the market.

Daymond wanted to know if they have planned to make their accessories go beyond seasonal limits. Madie confidently replied that they had already decided to launch a Black History Month program, Valentine’s Day program, weddings, showers, and also graduation programs. They are also planning for a party collection for birthdays which is the second largest market after Christmas.

Lori was curious to know why they needed a shark if they had already run a successful business. Madie highlighted that they want to grow their e-commerce business and marketing strategy. Jasmine added that they also want to increase their sales in store too.

Moreover, their retail business is limited to the accounts they can manage and there are only three which results in letting down the retailers.

Then Corcoran and Kevin both asked about the money they spend on themselves from the profit. They replied in the affirmative and also pointed out that the profit they highlighted was after they paid themselves.

Shark’s Response and Final Decision

Kevin was the first shark to leave the deal as he considered the distribution strategy to be very weak otherwise their business is of high scale.

Corcoran then offered them $250K but for a 15% equity stake.

Lori backed out too as she is not fit for seasonal business.

Cuban then jumped in with Corcoran and together they offered $250K for a 20% equity stake.

Madie then counter-offered them $450K for 18% of their company. The sharks readily rejected the offer.

Then the owners of Black Paper Party counter-offered Corcoran only $250K for a 10% equity stake.

Finally, Corcoran accepted their counter-offer and the ladies left the show with a deal on their hands.

Product’s Availability

After getting a deal on Shark Tank, they were also successful in creating a name nationwide. Black Paper Party products are available on their website, in stores, and on Amazon. Walmart’s exclusive “Home for the Holidays” collection blends classic Christmas traditions with a new Home Fragrance line inspired by scents from Black homes. Target’s “Mudcloth Christmas” collection highlights African-inspired designs on gift bags and wrapping paper.

Macy’s also carries Black Paper Party wraps and gift bags to spread holiday joy. Dollar General offers Family Pajamas and a new partyware line with designs reflecting the African Diaspora. CVS stores nationwide sell Black Paper Party’s gift bags and wrapping paper to add a festive touch.

Conclusion

Black Paper Party’s Shark Tank feature proved successful, leading to making a deal with Corcoran. Founded by Jasmine, Madia, and J’Aaron, the company creates culturally relevant Christmas décor, wrapping paper, and gift bags for Black Americans. Their growth has been impressive, with products now available at major retailers like Walmart, Target, Macy’s, Dollar General, and CVS.