Equity Crowdfunding Goes “Hollywood” With Legion M

Legion M is a new kind of Hollywood studio.

It proudly calls itself “the world’s first fan-owned media company.”

Indeed, it is fan-owned.

In fact, it was the second company to raise $1 million on Wefunder after Regulation Crowdfunding went live last year. (Reminder: These “Reg CF” rounds are capped at $1 million for now.)

Since then, Legion M has shot a virtual reality series with well-known director Kevin Smith, among other cool-sounding projects.

And now, the big news is that it’s back on Wefunder raising up to $50 million using Regulation A+. The new deal launched yesterday and appears to be doing very well so far. Just a few hours after launch, it raised more than $461,000!

Legion M’s Crowdfunding Deal Reviewed

The minimum investment on this deal is $100. That’s a smart move by the founders, as they’ll maximize the number of fan investors.

People who want to get involved do things like watching early cuts and providing valuable feedback… telling their friends… and sharing videos, teasers and trailers.

The terms? The “pre-money” valuation on this deal is $15.4 million.

If it raises the full $50 million, that means the “post-money” valuation would be $65.4 million.

At that point, it would truly be a fan-owned enterprise, with the founders bumped down to minority shareholders.

No matter how much they end up raising, it’s clear that the founders aren’t being too greedy with their personal stakes. They want to raise a big pile of money, get a lot of engaged investors on board and build a big studio.

In the Q&A section of its fundraising page, Legion M’s president, Jeff Annison, says the company’s lawyers are looking into the possibility of adding a board member to represent investors’ interest and that they feel very strongly about addressing this issue.

It’s certainly one of the most interesting deals we’ve seen yet. And it signals what this industry is capable of doing.

We’ve got a front-row seat to watch the beginning of a new online form of capital formation. It’s not just the same old IPO digitized.

It’s different and accessible to everyone. Unlike the IPO.

I’m going to end with a quote by famed comic book writer Stan Lee about Legion M:

“The idea of setting up a company that will be owned by the fans – I think that is a wonderful idea. So good, I wish I thought of it myself!”

It is a darn good idea!

But that doesn’t mean it’s a great investment. I’m still doing my research on this one, as it just launched this week. If we do decide to recommend it, I will provide a complete write-up in First Stage Investor.

What do you think about Legion M? Good speculative investment? Bad? Let us know in the comments section below.

Have a great weekend, everyone.

Adam Sharp
Founder, Early Investing