A Letter From The Founders To Prospective Investors
Thank you for considering an investment in Legion M! We couldn’t be more excited about this opportunity and are thrilled that you are considering joining us, but there are a couple things we want to mention.
Legion M is not a conventional company. We don’t intend to become one.
Much of what you will read in our SEC disclosures describes Legion M in conventional business terms. In fact, the whole purpose of those documents is to provide a convention for you to evaluate our company and make an informed investment decision. But there are elements of Legion M that defy convention and we want to take a moment to explain them in our own words.
Risk vs. Reward
Before you invest, it’s important to understand that Legion M is a very early stage company. In fact, thanks to the JOBS Act, you now have the opportunity to invest earlier than has ever been possible — at a stage traditionally reserved for angel investors and venture capitalists.
If you want to get in early, you need to understand the risks. As a pre-IPO startup, our financials are weak and our operating history is limited. When you invest in a startup you are investing like a venture capitalists: not banking on what we are today, but betting on what we could become tomorrow. It’s an inherently risky proposition — because as any venture capitalists knows, most startups fail.
But those that succeed can change the world. Every great company — from Walt Disney Pictures to Apple Computer — started with entrepreneurs and investors who had the courage to defy the odds and try something no one else had done before. We believe Legion M could be one of those companies.
We’ve beaten the odds before*, and believe we can do it again. You should never invest more than you can bear to lose. But if you’ve got a little extra and want to swing for the fences, we’d love for you to join us. We’re betting not just money, but also our reputations and careers that we can make this company a success.
One Million Fans
Legion M is, to our knowledge, the first company built from the ground up to be owned by fans. We're building it that way because we believe a media company owned by a large audience of fans has a fundamental competitive advantage over those owned by Wall Street investors. From sequels and franchises to talent and influencers, one of most valuable assets in Hollywood is a built-in audience. Imagine the power of a company with an audience built in to everything it does.
Our logo (the M with a bar over it) is the Roman numeral for one million, representing our long-term goal of uniting one million fans as shareholders of the company. If we can achieve this goal, Legion M will likely have hundreds of millions of dollars to invest in projects that have one million people emotionally and financially invested in their success. We believe that could make Legion M one of the most influential companies in Hollywood.
Redefining ROI
Most companies view investors simply as a source of capital. For Legion M, they are the foundation of our business. We are a community as well as a corporation. As a management team, our job is to create value for this community. While conventional companies define shareholder value solely by dollars and cents, Legion M goes one step farther:
Financial ROI
Legion M’s primary goal is to run a responsible business that earns money and increases our share price. Our investors are investing hard-earned dollars, and our job is to give them a return. Financial success is the key to the long-term viability and success of our company — the more money we make, the more great things we can do.
Emotional ROI
While financial success is the primary goal for Legion M, we believe there is more to life than money. In addition to financial return, we strive to give our investors an EMOTIONAL return for owning a piece of our company. We work hard to cultivate a vibrant community for our shareholders, look for interesting ways to take them behind the scenes with our projects, and strive to create new and exciting opportunities for them to be a part of the entertainment industry.
The wonderful thing about a fan-owned company is that financial and emotional ROI are not mutually exclusive. Getting our shareholders engaged and excited about our projects isn’t just good fun—it’s also good business. The more engaged and excited our audience is, the more buzz and value we create for the project, which in turn provides greater financial ROI to the company and all of its shareholders.
Let’s Put an M-shaped Dent in the Universe!
What we’re doing has never been done before. We know it won’t be easy, but things worth doing rarely are. While we can’t guarantee success (nobody can promise that), we can guarantee that we’ll do everything in our power to make this the best investment you’ve ever made.
So THANK YOU again for considering our company. Please review the information in this Memorandum. If you like what you see, we’d be honored to have you join us. If you don’t, that’s fine too. And if you’re not sure, please join the Legion as a free member**, so you can see for yourself what we’re all about.
Onward and Upward,
Paul Scanlan and Jeff Annison
Cofounders, Legion M
*In 1999, we (along with one other cofounder) started a company called MobiTV which we grew to over 300 employees, won an Emmy award for innovation, and became a worldwide leader in delivering TV outside of the living room.
**You can join Legion M as a free member at www.legionm.com/join-legion-m. As a free member, you don’t have a financial stake in the company’s success, but you do get access to our community and many of the same benefits that are available to shareholders. It’s a great way to see for yourself what Legion M is all about.