Legion M

Legion M

Growth Stage

The World's First FAN-OWNED Entertainment Company

Overview

Raised to Date: Raised: $4,445,516

Total Commitments ($USD)

Platform

StartEngine

Start Date

10/11/2022

Close Date

Not Provided

Min. Goal
$40
Max. Goal
$20,700,000
Min. Investment

$40

Security Type

Equity - Common

Series

Series A

SEC Filing Type

RegA+    Open SEC Filing

Price Per Share

$1.65

Pre-Money Valuation

$58,700,000

Rolling Commitments ($USD)

Status

Active

Reporting Date

05/21/2024

% of Min. Goal

11,226,050%

% of Max. Goal

21%

Likelihood of Max
unlikely
Avg. Daily Raise

$7,560

# of Investors

14,976

Momentum
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Year Founded

2016

Industry

Media, Entertainment & Publishing

Tech Sector

Non-Tech

Distribution Model

B2C

Margin

Low

Capital Intensity

High

Location

Los Angeles, California

Business Type

Growth

Legion M, with a valuation of $58.7 million, is raising funds on StartEngine through Reg A+ crowdfunding. It is the world’s first fan-owned entertainment company. The investors get to back a variety of projects diversified across different genres, mediums, and risk profiles. Legion M is disrupting the entertainment industry and is one of the most successful companies in crowdfunding history. The company has a history of successful projects and has four upcoming movies. Paul Scanlan and Jeff Annison founded Legion M in 2016. The current crowdfunding campaign has a maximum target of $20.7 million. The campaign proceeds will be used for development, project and operating expenses, and marketing.

Balance Sheet

Cash and Cash Equivalents

$1,227,661

Accounts and Notes Receivable

$30,817

Property, Plant and Equipment (PP&E)

$4,158

Total Assets

$2,629,095

Accounts Payable & Accrued Liabilities

$475,771

Long Term Debt

$48,200

Total Liabilities

$879,156

Total Stockholders' Equity

$1,749,939

Total Liabilities and Equity

$2,629,095

Statement of Comprehensive Income Information

Total Revenues

$1,062,732

Costs & Expenses Applicable to Rev

$726,773

Depreciation and Amortization

$4,484

Net Income

$-2,939,564

Earnings Per Share - Basic

$-0.98

Earnings Per Share - Diluted

$-0.98

Auditor: Artesian CPA, LLC
Financials as of: 10/11/2022
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Legion M 10/11/2024 StartEngine $58,700,000 $4,445,516 Equity - Common Active RegA+
Legion M 02/16/2023 Wefunder - $750,000 Revenue Share Funded RegCF
Legion M 04/29/2022 StartEngine $48,512,836 $3,849,523 Equity - Common Funded RegCF
Legion M 04/29/2021 Wefunder $40,500,000 $1,470,683 Equity - Common Funded RegCF
Legion M 07/30/2018 Wefunder $19,590,000 $901,888 Equity - Common Funded RegCF
Legion M 09/04/2017 Wefunder - $167,940 Equity - Common Funded RegCF
Legion M 08/13/2016 Wefunder - $999,999 Equity - Common Funded RegCF
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Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Valuation History

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Employee History

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Analyst Report

Synopsis

Legion M is an entertainment company that is owned by fans. It offers a new way for fans to invest in and be part of the creation of new movies, television shows, and other entertainment projects. This model not only provides a new source of funding for entertainment projects, but also ensures a built-in audience for those projects. Legion M has a diverse slate of projects that include collaborations with well-known figures in the entertainment industry such as Stan Lee, Kevin Smith, Anne Hathaway, David Tennant, Nicolas Cage, and Jason Sudeikis.

Legion M has already raised over $16 million in prior rounds, demonstrating strong interest in their unique business model. The company's current crowdfunding campaign on StartEngine has a maximum target of $20.7 million, funds that will be used for development, project and operating expenses, and marketing.

Investing in Legion M offers the opportunity to be part of the entertainment industry in a way that was previously only available to industry insiders. This is an especially attractive prospect for fans who want to support the projects and creators they love.

Next Section: Price

Price

Legion M is offering equity at a $58.7 million valuation. While Legion M is an innovative and unique entertainment company, the valuation seems inflated. With an annual revenue of $1.06 million, the revenue multiple of 55.38 is high for a company at this stage of development.

Investors should be cautious about the valuation and consider the risks associated with investing in a pre-profit company. While Legion M has a strong fan base and a successful history of crowdfunding, there is no guarantee of future success. Additionally, the company has a high capital intensity level, which means it requires significant investment to develop and produce projects.

Investors should carefully evaluate the potential for returns and the risks involved in investing in Legion M. While the company has notable partnerships and a slate of projects with well-known talent, it is important to consider the competitive landscape and the challenges of the entertainment industry. Overall, the price of Legion M shares may not be justified by the current financials and investors should proceed with caution.

Next Section: Market

Market

Legion M operates in the U.S. motion picture and video production market, which has a reported size of $17.4 billion. The sector has a steady growth rate of 6%, reflecting the ongoing demand for new content in an increasingly digital world. This demand is driven by the proliferation of streaming platforms as well as traditional entertainment avenues like cinema and cable television.

The entertainment industry is known for being highly competitive, with a multitude of both established enterprises and innovative startups vying for market share. However, Legion M's unique business model of being fan-owned sets it apart from traditional entertainment companies. This differentiation could play a key role in its ability to carve out its own niche within the industry.

Despite the high capital intensity typically associated with the entertainment industry, Legion M's highly successful utilization of crowdfunding helps to mitigate some of the financial risks, as it allows for the spreading of investments across a large number of supporters. This approach also aligns with the company's ethos of being a fan-owned operation.

Overall, Legion M operates in a sizable market with stable growth. Its unique fan-owned model sets it apart within a competitive landscape and aligns with trends towards more participatory entertainment experiences. This, combined with its approach to mitigating financial risks through crowdfunding, positions it well for potential growth within the industry.

Next Section: Team

Team

Legion M was founded by CEO Paul Scanlan and President Jeff Annison. Both founders have extensive experience in the entertainment industry, with an average of 21 years of relevant industry experience. 

Scanlan has a strong background in media and technology. He co-founded MobiTV, a pioneer in mobile television and digital media delivery, and served as its President and COO. Annison also worked at MobiTV as VP of Engineering and Product Management. The two founders seem to have a complementary skillset. 

Legion M has a team of 16 individuals who are dedicated to the company's mission. While specific details about the team members are not provided, the founders' experience and track record suggest that they have assembled a capable and knowledgeable team to support the growth and success of Legion M.

Overall, Legion M's experienced and dedicated team, combined with its unique fan-owned business model, positions the company well for growth and success in the entertainment industry.

Next Section: Differentiation

Differentiation

Legion M differentiates itself as the world's first fan-owned entertainment company. This unique ownership structure allows fans to be directly involved in the decision-making process and financial success of the company. By giving fans the opportunity to invest and participate in the entertainment industry, Legion M aims to disrupt the traditional model of entertainment production and distribution.

While Legion M operates in a moderately competitive industry, its fan-owned business model sets it apart from traditional entertainment companies. It leverages crowdfunding to raise funds on platforms like StartEngine, allowing fans to invest and support the development of projects they are passionate about. This direct connection between fans and the entertainment industry is a key differentiator for Legion M.

However, it's worth noting that Legion M's differentiation level in terms of product quality is relatively low, as it operates in an industry with established competitors. The company's success will depend on its ability to curate and produce compelling content that resonates with its fan base. Additionally, while Legion M has successfully completed previous projects and has four upcoming movies, it will need to continue delivering successful projects to maintain its momentum and attract new investors.

Legion M's valuation of $58.7 million and its track record as one of the most successful companies in crowdfunding history demonstrate the potential and interest in its unique fan-owned business model. With a focus on growth and disruptive innovation in the entertainment industry, Legion M aims to continue expanding its fan base, developing exciting projects, and reshaping the way entertainment companies are owned and operated.

Next Section: Performance

Performance

Legion M has shown promising growth and potential in the entertainment industry. The company has successfully raised over $15 million in prior rounds of crowdfunding, demonstrating strong support from its fan-based investors. As such, Legion M is one of the most successful companies in crowdfunding history.

The company has established partnerships with renowned industry figures such as Stan Lee, Kevin Smith, Anne Hathaway, David Tennant, Nicolas Cage, and Jason Sudeikis, among others. These partnerships provide Legion M with access to a diverse range of talent and increase its potential for success in the entertainment market.

Legion M has a slate of projects in development, including four upcoming movies. This diversified portfolio of projects across different genres and risk profiles mitigates the company's exposure to any single project and increases its chances of success.

In terms of financial performance, Legion M generated $1.06 million in annual revenue, representing a growth rate of 13.8% since the last round. While the company has paying customers, it is important to note that Legion M is still in the pre-profit phase and has a monthly burn rate of $245,000. This indicates that the company is investing heavily in development, project expenses, and marketing to drive future growth.

Overall, Legion M has demonstrated strong potential for growth and disruption in the entertainment industry. Its unique fan-owned business model, successful track record, and partnerships with industry influencers position the company well for future success.

Next Section: Risk

Risk

Investing in Legion M carries several risks that potential investors should consider. One key risk is the company's high burn rate, with monthly expenses exceeding its revenue. This suggests that Legion M may require additional funding to sustain its operations and achieve profitability. Additionally, Legion M operates in a highly competitive industry, facing competition from other entertainment companies. While Legion M has a unique business model as the world's first fan-owned entertainment company, it still needs to compete for audience attention and investor support in a crowded market. Another risk to consider is Legion M's valuation, which may be considered overvalued by some investors. This could impact the potential for future returns on investment. Furthermore, Legion M has a high capital intensity level, as it requires significant funding to develop and produce entertainment projects. This dependency on capital investment may pose challenges in scaling production and generating revenue. Finally, the negative net income of -$2,939,564 indicate potential financial strain on the company. Overall, while Legion M offers a unique investment opportunity in the entertainment industry, investors should carefully assess the associated risks before making a decision.

Next Section: Bullish Outlook

Bullish Outlook

Legion M has established itself as a pioneer in the entertainment industry by being the world's first fan-owned entertainment company. This unique business model allows fans to have a direct stake in the success of the company and the projects it produces. With a strong lineup of projects that include renowned names like Stan Lee, Kevin Smith, Anne Hathaway, and Nicolas Cage, Legion M has attracted a dedicated and passionate fan base.

Legion M has a proven track record of successful projects and is disrupting the traditional entertainment industry. By providing fans with the opportunity to invest in a variety of projects across different genres and mediums, Legion M offers a level of engagement and ownership that is unparalleled.

Despite being in the growth phase, Legion M has demonstrated steady revenue growth, with an annual revenue of $1,062,732 and an annual revenue growth rate of 13.80%. This shows that the company is on a positive trajectory and has the potential to further increase its revenue in the future.

Legion M has also formed partnerships and collaborations within the industry, further enhancing its market presence and potential for success. While the competitive landscape in the entertainment industry is moderately competitive, Legion M's unique fan-owned model and dedicated fan base provide a strong barrier to entry for potential competitors.

With a strong cash position of $1,227,661 and a solid foundation, Legion M is well-positioned to continue its growth and deliver exciting, fan-driven entertainment projects. The current crowdfunding campaign will provide the necessary funds for development, project and operating expenses, and marketing efforts, further fueling Legion M's growth and success.

Next Section: Bearish Outlook

Bearish Outlook

While the concept of fan ownership may be intriguing to some, it is important to evaluate the company's financials and prospects. Legion M is currently valued at $58.7 million, which raises concerns about its valuation relative to its financial performance. With an annual revenue of just over $1 million and a negative net income of nearly $3 million, the company's valuation seems inflated. Additionally, Legion M's revenue growth rate of 13.8% is relatively modest for a growth-stage company in the entertainment industry.

Furthermore, Legion M's revenue model primarily relies on transactional revenue, which may limit its ability to generate consistent and sustainable income. The company's low margin level also raises questions about its profitability and long-term viability. While Legion M has partnerships and a slate of projects that includes notable names in the entertainment industry, the success of these projects and their potential impact on the company's financials remain uncertain.

Additionally, Legion M's monthly burn rate of nearly $245,000 suggests that the company is spending significant amounts of cash without generating sufficient revenue to cover its expenses. This raises concerns about the company's cash flow and its ability to sustain its operations in the long term.

While Legion M may have a dedicated team of founders and a unique concept, its financial performance and valuation suggest that it may be overvalued. Investors should carefully consider the company's financials and prospects before making any investment decisions.

Next Section: Executive Summary

Executive Summary

Legion M Entertainment, Inc., a fan-owned entertainment company, is looking to disrupt the traditional entertainment industry model. With a unique approach to content creation and distribution, Legion M is leveraging the power of its fanbase to drive the success of its diverse portfolio of projects. The company has already seen a number of successful projects and has four upcoming movies in the pipeline, demonstrating its ability to consistently produce and deliver on its commitments. 

However, despite its innovative model and past successes, Legion M's financial health raises concerns. The company reported a net loss of approximately $2.9 million and has a high monthly burn rate. Additionally, while the company has seen annual revenue growth, it remains in a pre-profit stage. This financial situation, coupled with a high pre-money valuation of $58.7 million, suggests that the company may be overvalued. 

The entertainment industry is highly competitive and has significant barriers to entry. Despite this, Legion M's unique fan-owned model may provide it with a competitive edge by fostering a dedicated and engaged audience. However, the company's long-term success will depend on its ability to manage its financial health, continue producing successful projects, and further grow its fanbase. 

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Legion M on StartEngine 2022
Platform: StartEngine
Security Type: Equity - Common
Valuation: $58,700,000
Price per Share: $1.65

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