Whatever Happened To Surprise Ride After Shark Tank?

Growing up, Donna and Rosy Khalife didn't have a wealth of toys to play with. Their father, having fled with the two young sisters from embattled Lebanon, entertained them in the family's one bedroom with improvised crafts and activities — stoking within the girls a sense of curiosity and ingenuity that they would carry with them into adulthood.

Flashforward to 2013: Donna (now a Harvard MBA graduate after working as an investment banker at JP Morgan for four years) and Rosy (a marketer who had previously worked with lifestyle and children's brands) united to found Surprise Ride, a subscription service providing children with a monthly mystery educational activity packed in a box. Their mission to ignite the same creative spark within kids that their father ignited in them caught the attention of angel investor Irwin Jacobs, who gave the sisters $100,000.

Four months after their launch that same year, the company had shipped almost 800 boxes and secured 220 active subscribers, amounting to somewhere between $18,000 and $25,000 in sales. Now more confident than ever in their business, the Khalifes dove into ABC's "Shark Tank" to secure an investment that would take Surprise Ride to its desired destination.

In Season 5, Episode 10 of "Shark Tank," the Khalife sisters arrive seeking $110,000 for Surprise Ride, which they state would help them drive and monetize traffic by connecting them more efficiently with their target demographics. A large part of this plan involves hiring a $40,000-per-year marketing expert specializing in capturing the attention of mothers. For this investment, the sharks are offered just 10% of the company — imputing a $1.1 million valuation unsupported by Surprise Ride's low-five-figure sales.

Though Donna and Rosy are adamant they can reach $500,000 in sales within the next year, Daymond John and Kevin O'Leary aren't convinced Surprise Ride is worth anywhere near a million bucks. They bow out. Robert Herjavec expresses similar doubts but believes enough in the sisters as entrepreneurs to offer them $110,000 for 25%. Instead of responding to or even acknowledging the offer, the Khalifes look to Lori Greiner and Mark Cuban. Both go out.

When the sisters try to negotiate with Robert, he declines to entertain them further. Apparently offended by their ignoring of his original offer, he chastises, "You gave me time to change my mind." As they plead with him to reconsider, Kevin finally sends them out of the Tank. "You've actually come into the lore of 'Shark Tank," he mocks. "You are going to become legend. ... You had a deal and you didn't close it."

Following its appearance on "Shark Tank," thousands of parents flocked to the Surprise Ride website to enroll in the fledgling subscription service. Thanks to the unstoppable "Shark Tank" Effect, the company reached its goal of $500,000 in sales by the end of 2014. By the end of 2015, they hit $1 million in sales.

This caught the attention of none other than Mr. Wonderful himself, Kevin O'Leary, who had previously been scared away from the undeniably polished company and its sharp founders by its seemingly outsized valuation. Now that the Khalifes had proven their business was worth the price tag, O'Leary wanted another chance to get involved. With the help of "Shark Tank," he would get this chance.

In 2016, over two years after their failed pitch, the sisters were invited to film a "Beyond the Tank" follow-up segment. In the episode, Kevin makes a surprise overture and asks them to meet again on camera. Over coffee, he offers Surprise Ride $50,000 in exchange for 2.5% equity and a 6% royalty until he recoups $150,000. It is, in his words, a "take it or leave it" offer with "zero wiggle room." Remembering their fumbled deal with Robert Herjavec, the Khalifes act quickly and decisively — they accept Kevin's offer.

With the deal closed, Kevin O'Leary pledged to throw his full weight behind Surprise Ride. His primary goal was to drive traffic to the site (as the Khalifes expressed was their goal during their initial pitch) while lowering their $5.30 per customer acquisition cost. He also promised to leverage his own Mr. Wonderful team and his connections in the business world.

Two years after joining Surprise Ride, Kevin helped the company hit over $3 million in sales. He was so proud of their success that when The View invited the investors of "Shark Tank" to appear on the daytime TV program with their favorite businesses, Kevin brought the Khalifes to stand with exemplary "Shark Tank" products like The Comfy. For the second time, Kevin facilitated an opportunity for Surprise Ride to educate and market to a national broadcasting audience of potential customers. In a January 2018 interview with Success, the shark stated, "I anticipate seeing Surprise Ride's sales reach the tens of millions over the next few years."

In November 2018, just five years after its founding, Surprise Ride was acquired by independent toy company Fat Brain Toys for an undisclosed amount. "We're thrilled to join forces with Fat Brain Toys to bring Surprise Ride to every kid," said Donna Khalife in a statement. "This is the culmination of a lot of hard work and the American Dream coming to life for us."

Unlike the many companies that cease to exist after appearing on "Shark Tank," Surprise Ride remains in business as of writing. The monthly subscription cost has lowered slightly since 2014, now sitting at $24.95 per month (compared to $29.99 per month). Similarly, the Surprise Ride Create Sand Art Activity Kit is available on Amazon for $24.95.

Having successfully reached what seems to have been a profitable exit from Surprise Ride via its sale to Fat Brain Toys, Donna and Rosy Khalife moved on to other professional opportunities. The sisters left their respective positions as CEO and COO in the spring of 2019, at which point Rosy founded the boutique venture capital and private equity firm Launch Sisters Ventures. Donna joined her almost immediately afterward as a managing partner.

They also found temporary residency positions at the VC firm New Enterprise Associates and began serving on the board of the entrepreneurial non-profit Girls Who Start International. In 2021, Donna began working at Google in their innovation department before leaving in April 2024, and in 2023, Rosy joined the smart-building education platform Nexus Labs as COO.

"Shark Tank" is available to purchase on Prime Video.