Former investment bankers riding high on cupcake wave

Behold, the cupcake.

Its moist, decadent center and rich, sugary frosting are enough to make any sweet tooth's mouth water while conjuring up childhood memories of mom baking in the kitchen.

First baked in the early 1800s, these miniature cakes have hardly changed — main ingredients still require sugar, butter, eggs and flour. But two centuries later, cupcakes are more popular than ever.

Not only have they become an accepted wedding cake alternative, they're also exchanged as gifts and considered equally delectable to both adult and child — not to mention entrepreneur.

In the past decade, dozens of cupcake shops have opened in metropolitan cities across the country, including New York and Los Angeles, following the direction of Manhattan's Magnolia Bakery, often credited for starting the so-called "cupcake craze" in the 1990s.

Among the cupcake bakers are former investment bankers, Charles Nelson, 38, from Oklahoma City, and his wife, Candace Nelson, 33, who founded Los Angeles-based Sprinkles Cupcakes.

During visits to Candace Nelson's sister in New York, the couple had gone to Magnolia Bakery for its cupcakes, which became infamous in the '90s — thanks to media buzz and a cameo in an episode of HBO's Sex & The City. The cupcake craze had taken off in New York, but in other parts of the country, it was virtually untapped.

"We had been there and seen it all happen," Charles Nelson said. "We were like, OK, I totally get it. I get the cupcake thing; cupcakes are awesome. But we were like, 'the cupcakes aren't that great. They could be so much better and really could taste a lot better."'

That's when their mission to bake a better cupcake began.

Do one thing, and do it well. It's a simple philosophy — the source of many success stories for entrepreneurs — and it's the one the Nelsons chose to follow.

Obviously, they knew they had to be the best to survive, so the Nelsons spent the next two years developing more than 20 cupcake recipes, ranging from classic vanilla and chocolate to red velvet, ginger lemon, banana and pumpkin.

"We used to sit around with like eight different vanilla cakes and try them," he said.

These cupcakes weren't the ones grandma used to make. They were going to be an indulgence — and $3.25 a pop.