Q&A: Dividends vs. Growth?
Shareholder Q&A
Q: Legion M doesn't pay dividends, and the shares aren't easy to trade. Where's the ROI?
A: We've seen this question come up often enough that we thought it was worth sharing a few thoughts.
ROI and dividends aren't the same thing. And just because an investment isn't highly liquid doesn't mean it's not creating value.
To be clear, Legion M is not a dividend company, and we've never presented ourselves as one. We are, plain and simple, a private growth company. That comes with risk, and we've always tried to be transparent about that.
There's a difference between creating value and distributing value. Growth companies focus on creating value, while mature companies often distribute it. They're simply two different stages in a company's life.
When Tesla, Netflix, and Amazon were building their businesses, they weren't paying dividends. They still aren't. Instead, they reinvest their capital back into growth. Their focus isn't on distributing income to shareholders. It's on continuing to create long-term value for shareholders.
That's what we're working to do at Legion M.
And we're doing it with a fraction of the capital. Over the last ten years, Legion M has raised about $30 million, making us one of the most successful equity crowdfunded companies in the world. But compared to many high-growth companies or entertainment studios, it's relatively modest.
The companies mentioned above had access to hundreds of millions, and eventually billions, of dollars to fuel their growth.
We've taken a different path. With roughly $30 million, we've built an entertainment company owned by more than 60,000 people, released dozens of projects, worked with some of the biggest names in the industry, and created a model that we believe gets stronger with every new investor who joins.
Could we have raised more by taking the traditional venture capital path? Probably. But the resulting company would have been very different. From day one, the goal wasn't just to build another entertainment company. It was to build one that fans could actually own and have a voice in, because we believed a fan-owned company would have real competitive advantages in this industry.
And today, we've got something those other companies don't: tens of thousands of owners who aren't just investing in Legion M, they're an active part of making it successful. They share ideas. They spread the word. They show up at screenings. They challenge us to keep pushing. Our community is one of our greatest assets and the key to our success. Every new investor strengthens Legion M.
Could we pay a dividend someday? We certainly hope so. If we succeed in building the kind of company we envision, we'd love to reach a point where that's an option. But today, we believe every dollar we reinvest into growing Legion M has the potential to create more long-term value for the company and our investors than paying it out would.
The same goes for liquidity. As a private company, our shares aren't as easy to buy and sell as shares of a public company. That's simply part of investing in an early-stage business. People invest because they believe the company can create meaningful long-term value and someday be publicly traded, not because they expect to trade in and out of the stock.
Startup investing is risky, and many startups fail. That's one of the reasons we set our minimum investment at just $100. We want startup investing to be accessible, but also responsible. Nobody should risk money they can't afford to lose. Invest because you believe in the mission and the opportunity, not because you're expecting a quick payday.
One of the reasons we're optimistic right now is the momentum we're seeing: more investors, more projects, more strategic partners, more distribution opportunities, more proof points. After ten years, it honestly feels like a lot of the pieces we've been working toward are starting to come together.
If you're already one of our investors, thank you. You're exactly the kind of patient owner we hoped to attract. You're not just investing in a company. You're helping prove that fans deserve a seat at the table in Hollywood.
We're incredibly grateful to have you along for the ride, and we're excited for what's ahead.