Can Le-Glue Stick A Deal With The Sharks? | Shark Tank US | Shark Tank Global

Summary

In this episode of Shark Tank, young entrepreneur Trip Phillips, accompanied by his father Lee and sister Ally, presents Legloo, an innovative adhesive designed for Lego bricks. Legloo, patented by Trip at age 10, dissolves in water and safely lets kids easily disassemble their creations. Trip seeks $80,000 for a 15% stake in the business. After impressive sales figures and an engaging pitch, two sharks, Mr. Wonderful and Damon, make competing offers. After negotiating, Trip and his family choose Damon's offer for $80,000 at 20%, marking a successful business milestone.

Takeaways

• 😀 Trip Phillips, a 12-year-old inventor, created Leglue, a non-permanent adhesive for Lego bricks.
• 😀 Leglue is designed to solve the problem of messy Lego breakups and allows bricks to be reused after dissolving the adhesive in water.
• 😀 Leglue is non-toxic and safe for kids, making it an ideal product for Lego users.
• 😀 Trip holds a utility patent for Leglue and was one of the youngest patent holders in U.S. history when he received it at age 10.
• 😀 Trip came up with the idea for Leglue during a third-grade class assignment, where he had to come up with an invention.
• 😀 Leglue is sold online for $8.99, with a production cost of 43 cents per unit, yielding a significant profit margin.
• 😀 The company sold $52,000 worth of Leglue last year and $32,000 up until May of the current year, with a total lifetime sales of $125,000.
• 😀 Trip’s long-term goal is to partner with major brick manufacturers and have Leglue included in every Lego set.
• 😀 Mr. Wonderful (Kevin O’Leary) made an offer to help secure a licensing deal with toy companies, contingent on Leglue’s success in securing major partnerships.
• 😀 Damon John offered $80,000 for 25% equity, while Trip and his family countered with an offer of 20% equity, which Damon ultimately accepted.

Q & A

What is Trip Phillips' invention, and what problem does it solve?

Trip Phillips invented LegLoo, a non-permanent adhesive that dissolves in water. It is designed to prevent messy breakups of Lego constructions, making it easier to rebuild without permanent sticking, unlike superglue.

How old was Trip when he received the patent for LegLoo?

Trip was 12 years old when he received the patent for LegLoo, and he was informed that he was one of the youngest patent holders in U.S. history.

What inspired Trip to invent LegLoo?

In third grade, Trip had the option to write a paper or come up with an invention. Instead of writing, he sought his father's advice on how to invent something. He came up with the idea while playing with an airplane and noticing that Lego pieces wouldn't stay together properly.

How did Trip come up with the name 'LegLoo'?

The name 'LegLoo' was likely derived from combining 'Lego' with 'glue,' emphasizing its adhesive properties designed for Lego blocks.

What are the key features of LegLoo?

LegLoo is a non-toxic, safe adhesive that dissolves in water. It allows Lego blocks to stick temporarily and can be easily removed by soaking them in water, making it ideal for children.

What was Trip's sales performance like before the Shark Tank appearance?

Before appearing on Shark Tank, Trip's company had sold $52,000 worth of LegLoo the previous year, $32,000 up until May that year, and had a lifetime sales total of over $125,000.

What is the price point and cost of producing LegLoo?

LegLoo is sold for $8.99 per package, with a production cost of 43 cents, not including direct labor costs.

Why did Trip decide to turn his invention into a business?

Trip had always been interested in business and had watched Shark Tank from a young age. He wanted to turn his invention into a business rather than just completing a school project. He saw it as an opportunity to pursue his dream of being an entrepreneur.

What were the offers Trip received from the Sharks on Shark Tank?

Trip received two offers on Shark Tank: one from Mr. Wonderful (Kevin O'Leary), who offered $80,000 for 25% equity in the company, and another from Damon John, who offered the same amount for 20% equity. Trip and his family made a counteroffer of $80,000 for 20% equity, which Damon eventually accepted.

What strategic partnership did Damon John propose for Trip's business?

Damon John proposed that Trip and his company partner with him to help secure a licensing deal with major toy companies or adhesive companies like 3M, with the potential for royalty payments. If Damon was successful in securing a deal, the partnership would continue with Trip and his team retaining 20% equity in the business.