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In Shark Tank season 2 episode 5 that aired on April 15, 2011, Kim Nelson pitched her company called Daisy Cakes to the panel. She was seeking $50,000 in exchange for a 25% equity stake in the family-owned business that baked cakes using family recipes passed down for generations.
The pitch immediately caught the attention of the Sharks, as they said that those were probably the best-tasting cakes they had ever tasted. But on the grounds of the small-scale business, four Sharks refused the offer—Kevin O'Leary, Kevin Harrington, Daymond John, and Robert Herjavec. Barbara Corcoran was the last Shark in the show and expressed her reluctance, saying:
“I am worried about getting my money out of a tiny little businesss so here are the two conditions.”
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The two conditions were: Corocon wanted a dollar for every cake sold until she got her money back and she wanted Nelson's mom to continue to be part of her team.
The conditions behind Barbara Corcoran’s investment in Daisy Cakes on Shark Tank
The pitch: Seeking $50,000 for expansion
Kim Nelson came into the Shark Tank looking for $50,000 in exchange for 25% equity in her business, Daisy Cakes. She pitched that each cake was made from scratch using family recipes passed down through generations and shipped directly to consumers. At the time of her pitch, Daisy Cakes was a small operation based in South Carolina, with Nelson and her mother as the sole bakers.
The business generated $27,000 in sales over three months, primarily through trade shows and regional events. Nelson explained that her goal was to expand production and meet the demands of a growing customer base.
The Sharks sampled the cakes, and three of them remarked that the product was exceptional. However, Kevin O’Leary, Daymond John, Kevin Harrington, and Robert Herjavec all declined to invest, citing concerns that the business was too small to warrant investment. This left Corcoran as the last remaining Shark to consider the opportunity.
Barbara Corcoran's two conditions for investment
Initially, Barbara Corcoran expressed hesitation, stating that the business’s size made it a risky investment. However, she noted that despite the other Sharks declining to invest, they continued eating their cake samples, indicating the product’s unique appeal.
Corcoran then made an offer for the requested $50,000 under two conditions, which were:
"Every cake sold, you mail me a dollar. So, by the time you sell 50,000 cakes, I'd have my money back. Secondly, that you make sure your mother's on your team."
She added that Nelson’s mother should actively attend trade shows to promote the business. Nelson agreed to these terms. This decision provided Daisy Cakes with the necessary funding and mentorship to grow.
Daisy Cakes after Shark Tank
Following the episode’s airing, Daisy Cakes experienced a surge in orders. The company founder Kim Nelson told Kiplinger in June 2015 that the surge led to challenges such as a crashed website and overwhelmed phone lines. The business gained additional publicity through appearances on shows such as Good Morning America and The Rachael Ray Show.
Nelson returned to Shark Tank to provide an update. In season 3 episode 7 that aired on March 2, 2012, she mentioned that Daisy Cakes had grown significantly, with monthly sales averaging $100,000. The company expanded operations, moving into a larger bakery and eventually opening a second location in Las Vegas to serve customers in the western United States.
In 2020, Nelson appeared again on Shark Tank during a segment on season 12 episode 12 and revealed that Daisy Cakes had achieved lifetime sales of $8.5 million. Corcoran described the venture as one of her favorite investments.
As of 2025, Daisy Cakes remains in operation and it is active on Instagram with approximately 8K followers. The company now offers an expanded menu that includes additional flavors, gluten-free options, and individual-sized portions called Minikins. According to a Town Carolina report from November 2024, the business has generated approximately $11 million in sales to date.
Don’t miss out on all the new episodes of Shark Tank every Friday at 8 PM ET and stream the show anytime on Hulu!
