Traditional holiday and festival products often fail to reflect the experiences of Black people and children. To address this, three Black women—Madia Willis, Jasmine Hudson, and J’Aaron Merchant—founded the Black Paper Party. Their business celebrates Black culture and community by offering seasonal products that bring joy and highlight Black families during the holidays.
They sought the Sharks’ investment and expertise to expand their e-commerce business within the Black community, recognizing that Black Americans spend 15% more during the holiday season to celebrate. Let’s find out if any of the Sharks showed interest in investing in their business.
| Company Name | Black Paper Party | |
| Founder/Co-Founder | Madia Willis, Jasmine Hudson, and J’Aaron Merchant | |
| Founded | Sep 2020 | |
| Product | Season Product for Black Community | |
| Asked For | $250k for 5% equity | |
| Final Deal | $250k for 10% equity | |
| Shark | Barbara Corcoran | |
| Episode | S15 E8 | |
| Air Date | Dec 8th, 2023 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Bentonville, Arkansas, United States | |
| Annual (Revenue) | $1 Million *estimated | |
| Worth / Valuation | $5 Million | |
| Buy and Watch | Buy Now | Amazon Prime |
What Is the Background of The Founder?
Three Black women, Madia Willis, Jasmine Hudson, and J’Aaron Merchant, founded Black Paper Party in September 2020, focusing on creating seasonal products for the Black community.
Madia Willis, the company’s CEO and co-founder, is a professional product designer and developer with experience working at major retailers like Walmart, Target, and Five Below. J’Aaron is a freelance illustrator, while Jasmine specializes in supply chain management.
Business Pitch Episode Recap
Madia, Jasmine, and J’Aaron entered Shark Tank seeking $250,000 for 5% equity in their seasonal business. During their presentation, they showcased their products, including wrapping paper, ornaments, gift bags, décor, Papa and Nana Klaus, the Klaus Babies, Aunt Holly, and many more unique items celebrating Black culture.
Jasmine revealed that their business currently offers over 200 SKUs, with Madia and J’Aaron handling product creation. The company’s products are available nationwide in over 6,000 stores across major retailers like Macy’s, Target, Walmart, Family Dollar, and Dollar General.
When the Sharks asked about their sales, Jasmine shared impressive numbers:
- 2020: $44,000
- 2021: $274,000
- 2022: $844,000
- 2023 (projected): $1.1 million
The Sharks were eager to dive deeper into these figures!
Kevin O’Leary asked about the profit from their 2022 sales of $844,000. Jasmine explained that they had a 53% gross margin, resulting in a $158,000 net profit, which is 14% of their sales. For 2023’s projected $1.1 million in sales, their gross margin has improved to 65%, driven by the following sales breakdown:
- 57% Wholesale
- 16% Direct-to-Consumer
- 27% Licensed Products
The company produces each wrapping paper for $2.33 and sells it for $10 when sold directly to consumers.
Madia also shared their plans with the Sharks, revealing that they aim to expand beyond seasonal products. They plan to include items for Black History Month, Valentine’s Day, weddings, showers, graduations, and even launch a party collection.
The founders expressed that they need the Sharks’ help to scale their e-commerce business and develop a stronger marketing strategy to boost sales. Kevin O’Leary felt that Black Paper Party was still in the early stages of the seasonal industry and decided not to invest, saying he was out.
Barbara Corcoran praised the entrepreneurs for their business strategy and growth plans. She teamed up with Mark Cuban to offer $250,000 for 20% equity. Lori Greiner shared that she doesn’t invest in seasonal businesses and believed Barbara and Mark’s offer was excellent, so she is out.
Madia countered Barbara and Mark’s offer with $450,000 for 18% equity, but they declined. She then proposed a single offer to Barbara: $250,000 for 10% equity. Barbara accepted this deal, finalizing the partnership.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Barbara Corcoran | $125k for 10% equity (Mark) |
| Kevin O’Leary | No Offer |
| Mark Cuban | $125k for 10% equity (Barbara) |
| Daymond John | No Offer |
| Lori Greiner | No Offer |
| Founder’s (Countered) | $250k for 10% equity (Barbara) |
| Final Deals | $250k for 10% equity |
Black Paper Party Shark Tank Update
After this episode aired, the company received a highly positive response in terms of sales, seeing a 4x growth within just a few weeks.
Additionally, the company easily met its $1.1 million sales projection for 2023. Furthermore, their new birthday party paper products were listed in 5,000 Dollar General stores.
After further research, we found that the company currently sells a ceramics product line, including mugs, wine glasses, loaf pans, and more.
As of December 2024, J’Aaron Merchant is working part-time at the company, while she is also working full-time as a freelance art director.
Check out Shark Tank Season 15 Business Update.
You can see some businesses from Season 15 here.
