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Entrepreneur Miranda Vaughn appeared on Shark Tank season 15 in its holiday special episode, which aired on December 8, 2023. She introduced The Tomte Cake, a bake-at-home gingerbread house kit designed to offer an alternative to traditional gingerbread house decorating. Vaughn asked $200,000 in exchange for 10% equity in her company.
During her pitch, Vaughn said that she had no prior experience in online marketing before starting her business.
“I’ve been a stay-at-home mom for the last eight years and homeschooled my kids,” she said.
Despite this, she sold 5,000 units within 35 days of launching in October 2022, generating $200,000 in revenue. She achieved this through a single Facebook ad campaign, which cost $40,000. Her story and business model caught the attention of the Sharks, leading to multiple offers.
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After negotiations on Shark Tank, Vaughn decided to move forward with Kevin O’ Leary's offer, and the deal was finalized at $200,000 for 15% equity.
The Tomte Cake's pitch on Shark Tank
Miranda Vaughn introduced The Tomte Cake in the Shark Tank, explaining that the product aimed to improve the traditional gingerbread house decorating experience. She described store-bought kits as “impossible to assemble” and tasting like “stale, cardboardy” cookies.
Her product included a 3D baking pan, a children’s book she wrote and illustrated, and a small aluminum gnome that gets baked into the cake. She mentioned that whoever fond the gnome in their piece of cake was believed to have good luck for the rest of the Christmas season. Vaughn positioned The Tomte Cake as a new Christmas tradition for families.
The Sharks sampled the product during the pitch. Lori Greiner called it “very tasty,” while Mark Cuban said it was “not bad at all.” Vaughn then explained how she came up with the idea, stating that she was struggling to assemble a store-bought gingerbread house with her young children.
“I ended up using a hot glue gun on his. And he's crying because now he can't eat it. And I was like, there has to be a better way,” she told the Sharks.
This led her to develop a gingerbread house that required no assembly. Vaughn shared details about the product’s pricing and sales. She said each set cost $60 and was sold online. The manufacturing cost per unit was $15 at the time.
She launched the business in October 2022 and sold out all 5,000 units within 35 days, generating $200,000 in revenue. She explained that her marketing strategy was a Facebook ad campaign that cost $40,000.
“I had a static graphic Facebook ad that I ran. It just said, ‘A New Christmas Tradition.’ And people just clicked the link,” Vaughn said.
When asked about her background, Vaughn shared that she had no prior business experience. She also mentioned a personal connection to Christmas, as she grew up in a religious cult that did not celebrate holidays.
“We didn’t celebrate birthdays, Christmas, Mother’s Day, Father’s Day. And so after I left, I was able to experience Christmas for the first time,” she said.
Her experience led her to embrace holiday traditions, inspiring The Tomte Cake. The Sharks responded positively to Vaughn’s pitch. Barbara Corcoran called it “a great gift item,” and Kevin O’Leary described it as “simple and elegant.” Vaughn stated that she was seeking not just financial investment but also mentorship to expand her product line.
“I want mentorship. I am really creative. I'd love to come up with another concept that branches off of this. I'd love more of a product line. I am not a business person at heart,” she said.
Shark Tank panelist O’Leary made the first offer, proposing $200,000 for 25% equity with a condition that he would receive 25 cents for every dollar Vaughn took out as profit. Lori Greiner suggested expanding the concept to other holidays and offered $200,000 for 33.3% equity.
Corcoran offered $200,000 for 20%, and said that she had multiple holiday-themed businesses that could support Vaughn’s growth. Daymond John initially considered teaming up with Corcoran and Greiner, but they declined, so he made an independent offer of $200,000 for 25% equity.
Vaughn attempted to negotiate with Greiner, asking her to lower her equity stake to 20%, but she refused. O'Leary then revised his offer, reducing his equity stake to 15%. Vaughn ultimately accepted O’Leary’s deal in the Shark Tank.
As of March 2025, the company lists The Tomte Cake Set, Gingerbread Baking Kit and Additional Tomte Gnome on its official shopping website. The brand is also active on social media, with 6K and 5.4K followers on Instagram and Facebook, respectively.
Interested viewers can watch Shark Tank every Friday at 8 pm EST on ABC.
