TLDR;
Trip Phillips, along with his dad Lee and sister Ally, present Leg-Glo, a non-permanent adhesive for Lego bricks, seeking $80,000 for 15% of their company. Trip invented Leg-Glo to solve the problem of Lego creations breaking apart easily. The product is non-toxic, safe for kids, and dissolves in water. They've already made significant sales and aim to partner with a major brick manufacturer. They receive offers from Kevin O'Leary and Daymond John, ultimately choosing O'Leary's offer due to its contingency on securing a licensing deal.
- Trip invented Leg-Glo at a young age to solve a personal problem with Lego bricks.
- The product has already generated significant sales through their website.
- They receive two offers from Sharks, and ultimately partner with Kevin O'Leary.
Introduction to Leg-Glo [0:02]
Trip Phillips, accompanied by his dad Lee and sister Ally, introduces Leg-Glo, a non-permanent adhesive designed for Lego bricks. They are seeking an investment of $80,000 in exchange for 15% equity in their company. Trip explains that Leg-Glo solves the common problem of Lego creations breaking apart. The adhesive is non-toxic, safe for children, and easily dissolves in water, allowing Lego bricks to be reused without damage.
The Invention Story and Product Details [0:40]
Trip explains that Leg-Glo allows users to easily pick up and continue playing after a Lego creation falls apart. To disassemble, the bricks can simply be soaked in water. He emphasizes that Leg-Glo was created for kids by a kid. During the presentation, samples and homemade sharks made of Legos are gifted to the Sharks.
Patent and Inspiration [1:56]
Trip holds a Utility Patent and was one of the youngest patent holders in US history. He shares the story of how he invented Leg-Glo as a third-grade class assignment, choosing to invent something rather than write a paper. His inspiration came from his frustration with his Lego airplane constantly falling apart, leading him to seek a solution that wasn't permanent like super glue.
Sales and Vision [3:02]
In the previous year, Leg-Glo achieved $52,000 in sales, and $32,000 up to the end of May this year, with total lifetime sales exceeding $125,000. The product is primarily sold online through their website. The cost to make a package is 43 cents for direct labor, and they sell it for $8.99. Trip's long-term vision includes partnering with a major brick manufacturer to include Leg-Glo in every Lego kit.
Offers and Counteroffers [4:28]
Kevin O'Leary offers $80,000 contingent on securing a royalty deal with a major toy company, proposing a 50/50 split of royalties until he recoups his investment, then dropping to a 20% perpetual stake. Daymond John offers $80,000 for 25% equity, leveraging his connections with adhesive giant 3M. The other Sharks drop out, citing the strength of the existing offers. Trip and his team counteroffer Daymond John with $80,000 for 20%, but John insists on 25%.
Deal with Kevin O'Leary [7:23]
Trip decides to accept Kevin O'Leary's offer due to its contingency on securing a licensing deal.