Le-Glue Lego & Building Block Glue

le glue and blocks

DEAL

EPISODE SUMMARY

đź•“ Air Date: October 7, 2018

Asking For:
$80,000 for 15%

Investor:
Kevin O'Leary

Deal:
$80,000 for 20%

PRODUCT SUMMARY
Le-Glue is the world's first non-permanent adhesive designed to prevent messy breakups of toy creations, dissolving in water and safe for kids.

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Background Story

Le-Glue, a groundbreaking adhesive company, hails from Dalton, Georgia, and is the brainchild of the inventive 12-year-old entrepreneur, Tripp Phillips, supported by his father, Lee Phillips, and his sister, Allee. Tripp’s journey into entrepreneurship began in the third grade during a class assignment. Given the option to write a paper or create an invention, Tripp opted for the latter, seeking a solution to a problem he faced with his favorite toy, an airplane. Frustrated by the wing popping off during takeoff, Tripp approached his father for guidance on inventing something to keep the toy intact without permanent adhesion.

Lee Phillips, recognizing his son’s creative potential, advised Tripp to identify a problem and find a solution. In a stroke of childhood brilliance, Tripp conceptualized an adhesive that could hold toy bricks together without the permanence of superglue. This idea marked the inception of Le-Glue. Tripp’s determination and creativity led to the acquisition of a utility patent, making him one of the youngest patent holders in U.S. history at the age of 10.

The product, Le-Glue, serves as the world’s first non-permanent adhesive specifically crafted for the toy-building experience. The Phillips family’s passion for solving a real problem and Tripp’s dream of appearing on “Shark Tank” converged to bring Le-Glue to the forefront of innovation. The adhesive is not only a practical solution to messy toy breakups but also a testament to the entrepreneurial spirit of a young inventor from Dalton, Georgia.

The Product

Le-Glue, the brainchild of 12-year-old inventor Tripp Phillips from Dalton, Georgia, is a revolutionary non-permanent adhesive designed for the toy-building experience. The product provides a simple yet effective solution to the age-old problem of toys falling apart during playtime. Applied to toy bricks, Le-Glue allows for easy assembly and disassembly by dissolving in water, making cleanup a breeze.

Its non-toxic and kid-friendly formulation ensures a safe play environment. The adhesive is crafted to hold toy bricks together securely without the permanence of traditional adhesives like superglue. The application is straightforward — a small amount of Le-Glue is applied to each brick, left to set, and the toy is ready for play. The best part is the ease with which the bricks can be separated by soaking them in water, allowing for endless creative possibilities and preventing the frustration of messy breakups.

Le-Glue is priced at $8.99 per package, providing a competitive and affordable option for parents and toy enthusiasts. The product is primarily available for purchase through their website, offering a convenient online platform for customers to acquire this innovative adhesive. With a cost of 43 cents for direct labor, Le-Glue not only solves a common problem but also boasts a healthy profit margin, making it an attractive choice for both consumers and the company’s bottom line.

How It Went

The company’s position before Shark Tank

Le-Glue, headquartered in Dalton, Georgia, has demonstrated commendable performance and growth in its journey as an innovative adhesive company. The company’s financial health and market position reflect its success in addressing a genuine need in the toy industry. In the last year, Le-Glue reported sales of $52,000, and up until May of the current year, sales reached $32,000, with a cumulative lifetime sales exceeding $125,000. This showcases a positive revenue trajectory, underscoring the product’s market acceptance. The primary sales channel has been the company’s own website, providing a direct-to-consumer model that aligns with the modern e-commerce landscape.

le glue founder

As for partners and wholesalers, Le-Glue is currently focused on online sales and direct-to-consumer relationships. The vision, however, includes forming partnerships with brick manufacturers, presenting an opportunity for broader distribution in toy kits. The company is privately funded, and the founders sought $80,000 from the Sharks during their “Shark Tank” appearance, indicating an eagerness to secure additional capital for expansion. Profits are robust, with a competitive pricing strategy set at $8.99 per package, and a production cost of 43 cents per unit. This not only ensures a healthy profit margin but also makes Le-Glue an appealing option for consumers. The funding sought from the Sharks is positioned to be a strategic investment to propel the company into new markets and collaborations.

putting glue on block

The current company structure revolves around the Phillips family, with Tripp, his father Lee Phillips, and his sister Allee playing pivotal roles. The family’s decision to accept a licensing deal from Kevin O’Leary during their “Shark Tank” appearance suggests a potential shift in the company’s structure, with O’Leary becoming a significant stakeholder and contributing expertise in navigating licensing agreements with major toy companies. This strategic move positions Le-Glue for accelerated growth and broader industry influence.

The Negotiations:

In the engaging negotiations on “Shark Tank,” young entrepreneur Tripp Phillips and his family presented Le-Glue, seeking an $80,000 investment for 15% of their adhesive business. The pitch attracted interest from both Kevin O’Leary and John. O’Leary, known for his strategic business approach, offered a unique proposition—a licensing deal. He proposed providing the $80,000 investment and leveraging his industry connections to secure a licensing agreement. The deal involved a 50/50 split until O’Leary recouped his investment, after which his stake would reduce to 20%, maintaining a perpetual partnership.

leglue founder with sharks

John also expressed interest, countering with a $80,000 offer for a 25% stake in the company. Recognizing the potential of Le-Glue in the retail space, he aimed to explore licensing opportunities with a giant in the adhesive industry, 3M. Tripp was faced with a challenging decision between O’Leary’s licensing expertise and John’s industry connections. After careful consideration, the Phillips family chose to align with Kevin O’Leary’s offer. This decision reflected their aspiration to tap into the licensing realm and benefit from O’Leary’s extensive network to secure deals with major toy companies.

Lego blocks

The negotiation process showcased the young entrepreneur’s maturity and strategic thinking, as he opted for a deal that not only provided financial support but also positioned Le-Glue for significant growth through licensing partnerships. O’Leary’s involvement not only secured funding but opened doors to potential collaborations that could reshape Le-Glue’s trajectory in the toy industry. The negotiation concluded with a successful deal and the promise of a prosperous future for Le-Glue under