Legion Works
Overview
Raised: $115,671
2019
Business Services, Software, & Applications
EnterpriseTech
B2B
Medium
High
Balance Sheet
Cash and Cash Equivalents |
$4,673,907 |
Investment Securities |
$0 |
Accounts and Notes Receivable |
$52,850 |
Property, Plant and Equipment (PP&E) |
$20,178 |
Property and Equipment |
$20,178 |
Total Assets |
$7,175,614 |
Accounts Payable & Accrued Liabilities |
$235,056 |
Long Term Debt |
$59,193 |
Total Liabilities |
$336,894 |
Total Stockholders' Equity |
$6,838,720 |
Total Liabilities and Equity |
$7,175,614 |
Statement of Comprehensive Income Information
Total Revenues |
$2,500,299 |
Costs & Expenses Applicable to Rev |
$551,438 |
Depreciation and Amortization |
$1,029,825 |
Net Income |
$-2,306,004 |
Earnings Per Share - Basic |
$0.00 |
Earnings Per Share - Diluted |
$0.00 |
Raise History
Offering Name | Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|---|
Legion Works | 01/08/2024 | StartEngine | $49,470,000 | $115,671 | Equity - Common | Funded | RegA+ |
Legion Works | 06/21/2023 | Dalmore Group | $15,300,000 | $35,132 | Equity - Common | Funded | RegA+ |
Legion Works | 05/31/2022 | Dalmore Group | $11,376,609 | $11,285,517 | Equity - Common | Funded | RegA+ |
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.
Valuation History
Price per Share History
Note: Share prices shown in earlier rounds may not be indicative of any stock splits.
Employee History
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Synopsis
Legion Works acquires SaaS companies and leverages its expertise to increase their profitability and revenue. This approach allows Legion Works to maximize shareholder value by capitalizing on the growth potential of the acquired companies.
Legion Works' team brings a wealth of industry contacts, a track record of success, and first-hand knowledge of the SaaS market. These factors position the company to identify promising acquisition targets and implement effective growth strategies. The company's revenue model is based on recurring income, a characteristic feature of the SaaS industry that provides a steady revenue stream.
Since founding in 2019, Legion Works has raised $12 million in prior funding rounds. The company seeks to raise $43.6 million in a Regulation A+ crowdfunding campaign on the StartEngine platform. The funds raised will be used for various purposes, including acquiring and developing software assets, officer salaries, research and development, marketing and sales, and working capital.
Price
Legion Works is raising funds at a valuation of $49.47 million. While the company has a solid revenue growth rate of over 55% and generated $2.5 million in annual revenue, the valuation seems inflated. With a revenue multiple of nearly 20, Legion Works is priced like a high-growth tech company. However, it is important to note that Legion Works is not a traditional SaaS company but rather a company that acquires and grows SaaS companies. This business model introduces additional risks and complexities to consider when evaluating the valuation.
Investors should also consider the company's capital intensity level, which is high. Legion Works will require significant capital to acquire and develop software assets, maintain research and development efforts, and support marketing and sales activities. This level of capital intensity may impact the company's ability to generate returns for investors.
Given these factors, investors should carefully evaluate the valuation of Legion Works and consider the potential risks associated with its unique business model. While the company has shown revenue growth, it may be prudent to approach this investment opportunity with caution.
Market
The Software as a Service (SaaS) market is a large and rapidly growing sector, expected to reach a size of $185.8 billion by 2024, according to Grand View Research. The United States forms a significant part of this market, with a size of $73.59 billion.
While the SaaS market is growing at a robust rate of 11%, it is also extremely competitive. This level of competition is due to the low barriers to entry, the global nature of the market, and the high demand for these services. Companies must continually innovate and provide superior services to maintain a competitive edge in this market. Legion Works' strategy of acquiring and improving SaaS companies positions it well to leverage this market's growth potential.
Importantly, the SaaS market is also characterized by high market acceptance. Businesses across various sectors increasingly rely on SaaS solutions for various functions, including customer relationship management, human resources, and financial operations. This widespread acceptance bodes well for Legion Works and its portfolio of SaaS companies.
The market's regulatory environment is relatively low, which can facilitate a smoother business operation for companies like Legion Works. However, Legion Work's business model requires substantial capital, which signifies additional financial resources for business acquisition and growth. As such, Legion Works' current crowdfunding campaign to raise funds can be seen as a strategic move to capitalize on the market opportunity and fuel its growth ambitions.
Team
Legion Works was founded by a team of four individuals: CEO Ryan Bettencourt, President Mike Kamo, CPO Keiran Flanigan, and CMO Grant Bostrom. Each founder brings relevant industry experience and complementary skills to the team.
Bettencourt has a background in entrepreneurship and has previously founded and led companies in the technology and marketing space. He has experience in high-level management and has successfully raised capital for previous ventures. Kamo also has industry experience and has held leadership positions in various companies. As the Chief Product Officer, Flanigan brings a unique perspective to the team with his product development and strategy expertise. Bostrom, as the Chief Marketing Officer, has experience in marketing and branding.
While the team is relatively small, Legion Works has demonstrated medium growth in team expansion. As the company grows, adding more talent to support its operations and expansion plans may be necessary.
Overall, Legion Works has a dedicated and experienced team focused on acquiring and growing SaaS companies. With their industry expertise and growth-oriented approach, they are well-equipped to capitalize on opportunities in the US SaaS market.
Differentiation
Legion Works operates in the highly competitive US SaaS market, differentiating itself by acquiring SaaS companies and leveraging its expertise to drive profitability and revenue growth. The company positions itself as an expert in maximizing shareholder value through its growth formula. Legion Works boasts an experienced team with extensive industry contacts and a successful track record. However, the company does not provide specific details about its growth formula or how it sets itself apart from competitors.
While Legion Works is a player in the SaaS market, it does not provide information about its specific industry or target market within the broader SaaS sector. This lack of clarity makes it difficult to assess the company's product offering or solution differentiation. Additionally, Legion Works does not mention any partnerships, patents, or unique technologies that could contribute to its differentiation in the market.
Given the limited information, it isn't easy to fully assess Legion Works' differentiation level. The company's description suggests that its differentiation may be low, as it is similar to other players in the market. However, without further details about its growth formula, industry focus, or unique value proposition, it is challenging to evaluate the company's true differentiation in the competitive SaaS landscape.
Performance
Legion Works had cash and cash equivalents totaling $4,673,907 as of the most recent fiscal year end. This gives the company a solid financial foundation to support its growth strategies and potential acquisitions.
Legion Works has raised $12 million in prior rounds, demonstrating investor confidence in its business model and growth potential. The current crowdfunding campaign on StartEngine has a maximum target of $43.6 million, which will be used for various purposes such as software asset acquisition and development, officer salaries, research and development, marketing and sales, travel and entertainment, and working capital.
Legion Works has shown promising revenue growth, with an annual revenue of $2,500,299 and a growth rate of 55.03% since the last round.
Overall, Legion Works presents an interesting opportunity for investors looking to participate in the growth of the SaaS market. The company's experienced team and acquisition-focused strategy position it to potentially unlock value in the SaaS companies it acquires. However, investors should be aware of the competitive landscape and that Legion Works has not yet generated revenue from paying customers.
Risk
Investing in Legion Works carries risks that potential investors should know. One critical risk is the highly competitive landscape in which the company operates. Numerous companies in the market offer similar services, which could lead to increased competition and pricing pressures for Legion Works. Additionally, Legion Works relies on its ability to acquire SaaS companies and successfully grow their profitability and revenue. If the company struggles to identify suitable acquisition targets or fails to execute its growth strategy effectively, it may impact its financial performance and shareholder value. Furthermore, Legion Works has a high monthly burn rate and requires significant capital to scale its production and sales efforts. If the company cannot secure additional funding or generate sufficient revenues, it may face financial challenges that could impact its operations. Additionally, while the company has a high market acceptance, it must note that Legion Works has a negative net income, indicating potential financial instability. Finally, the company's valuation appears higher, which may raise concerns about whether it is overvalued. It is crucial for investors to carefully evaluate these risks and conduct thorough due diligence before making an investment decision in Legion Works.
Bullish Outlook
Legion Works has a unique business model that sets it apart from its competitors in the SaaS industry. By acquiring SaaS companies and leveraging its expertise, Legion Works aims to maximize profitability and revenue growth for these companies. With a proven growth formula and an experienced team, Legion Works can potentially create significant value for its shareholders.
The company's impressive track record and extensive industry contacts provide a strong foundation for future success. Legion Works has already demonstrated its ability to drive revenue growth, with an annual revenue of $2.5 million and a growth rate of over 55%. This showcases its growth strategy's effectiveness and ability to generate consistent and sustainable revenue.
The market potential for Legion Works is high as the US SaaS market continues to experience rapid growth. With its focus on recurring revenue models, Legion Works is well-positioned to capitalize on this market opportunity.
Overall, Legion Works has the potential to be a standout player in the SaaS industry. The company is well-positioned for future success with its unique business model, proven track record, and strong market potential. Investors should consider the growth opportunities and value creation potential that Legion Works brings.
Bearish Outlook
Legion Works is seeking significant funding through its Reg A+ crowdfunding campaign, but investors should consider several red flags. While the company has a valuation of $49.47 million, it is important to note that Legion Works primarily operates in the pre-profit phase, meaning it has yet to generate a profit. This raises concerns about the company's ability to achieve profitability in the future, especially considering its negative net income of -$2,306,004. With a monthly burn rate of $192,167, it is unclear how long the company's cash reserves will last without a reliable revenue stream.
The competitive landscape in the SaaS market is extremely fierce, and Legion Works will face significant challenges in standing out among its peers. Furthermore, the barriers to entry in the industry are low, meaning that new competitors could easily emerge and disrupt Legion Works' business model.
Investors should carefully consider these factors before investing in Legion Works. The company's high valuation, lack of profitability, and unproven track record raise concerns about its long-term viability and potential shareholder returns.
Executive Summary
Legion Works is a company that specializes in acquiring SaaS businesses and leveraging its skills and resources to grow its profitability and revenue. The company has a well-established growth formula to maximize shareholder value. Legion Works operates in the US SaaS market, which has a high market potential due to the increasing adoption of SaaS solutions across diverse industries.
Despite being in the growth stage, the company has already generated an annual revenue of $2,500,299, showing a growth rate of 55.03%. This indicates that the company's acquiring and growing SaaS businesses are proving successful. However, the company has a net income of $-2,306,004, indicating it is not profitable.
Legion Works faces an extremely competitive landscape with low barriers to entry. This could pose a significant challenge to the company's growth and profitability in the future. Despite this, the company's founders are dedicated and have an impressive history and extensive contacts, which could benefit the company's growth.
However, the company's valuation of $49.47 million seems overvalued, considering its current financial performance and competitive landscape. The company also has a high capital intensity level, with a monthly burn rate of $192,167. This could pose a risk to investors if the company is unable to improve its profitability or secure additional funding in the future.
Overall, while Legion Works has shown some promising growth signs, significant risks and challenges need to be considered. Therefore, potential investors should carefully evaluate these factors before making an investment decision.
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Founder Profile
The Legion Blueprint: Ryan Bettencourt's Approach to Software Growth
This name might sound familiar. We last spoke with Legion Works founder Ryan Bettencourt in 2020. As a refresh, Legion Works buys and scales software companies. We spoke with Ryan to learn what he and his team have been working on since we last saw them raise and how this model is unique.Note: This interview was conducted over phone and email. It has been lightly edited for clarity and length.