Leglue is a company from Dalton, GA, that solves a problem a lot of kids have with their building block toys, rapid unplanned disassembly. (Rocket speak for falling apart.)
The entrepreneur is a twelve year-old boy who invented the product when assigned in school to either write a paper or come up with an invention. Opting to invent rather than write a paper, he went home and brainstormed product ideas while playing with his building block toys only to have them keep falling apart. Out of frustration he invented a glue that would hold the blocks together.
Essentially, he invented The Craggle.
The product was described as a non-toxic glue that would hold blocks together but would dissolve if soaked in water. It is a strong enough glue that one glued toy survived a drop to the floor during the demonstration. The entreprenur claims to have a utility patent on the product and claims also to be one of the youngest patent holders in the country. He received the patent at the age of ten.
During the demonstation, the entrepreneur studiously avoided saying the name "Lego" even though everyone, including him, seemed to have it on the tip of their tongues.
The product has sold $125,000 over the course of its lifetime, $52,000 the previous year and $32,000 so far in the year in which the deal aired. It costs $0.42 per unit to make but retails for $8.99. All sales have been online through the business' own site.
The goal, according to the entrepreneur, is to partner with "a brick maker" to sell the product alongside the brick toys.
This deal aired on Episode 10.01.
Making A Deal
Mr. Wonderful came in with one of his patented deals. In this case, it was an equity & royalty deal but more generous than his usual deals. He wanted to invest the $80,000 into the company in exchange for a 50% royalty on revenues that would expire when he made his original $80,000 back.
In addition, he promised to make a deal with a toy block maker to have the product sold alongside. If he made the deal, he would get 20% in equity when the royalty expires otherwise he would get nothing.
It's not often that the Stats Shark thinks Mr. Wonderful's deals are the best to be offered but, occasionally, they actually are. In this case, it's a win-win for the entrepreneur. Given the stated margins, they can more than afford the royalty if no deal is made which makes it an interest free loan.
However, if a deal is made, then Kevin more than proves his worth as a partner in which case the bite of $133,333 is nothing compared to the long term value of the business.
- A search of the USPTO website revealed no patents for any company named "Leglue" or "le glue" or even just "toy glue". However the patents (if issued) could be issued under the inventor's name or in the name of another party.