Legion M, the crowd-sourced, fan-driven film company known for specialty titles like the recent spoof Fackham Hall, is starting a new fund.
The Legion M Film Fund has an objective as straightforward as its name. It is a new opportunity for fans and investors to participate in the marketing, distribution and financial upside of feature films released by Legion M and its partners. A select number of films from Legion M and partner distributors will be made available, with investors benefiting from efforts by companies driving audience engagement, marketing and community-driven promotion.
Fackham Hall was released last month in the U.S. by Legion M as a co-venture with Bleecker Street. The well-reviewed send-up of Downton Abbey-style period British dramas has grossed $3 million worldwide, most of that outside the U.S. Investors ranging from actual green eyeshades to enthusiastic cinephiles are now able to take part in the project alongside Legion M’s investment, with the promise of a projected 15% return within 12 to 18 months.
The aim of the new fund is to deliver steady returns on properties determined to be lower-risk propositions due to their distribution and marketing strategies. The fund operates according to a system known to Econ 101 students everywhere as “LIFO,” or “last in, first out.”
In the film business, LIFO means that those putting money in at a later stage have the advantage of test screenings and other assurances, and can exit without waiting through a progression of ancillary windows. Far riskier bets are made by early investors, who might put money up based on a script or even a pitch, sometimes before talent or filmmakers are attached. Steadier and more reliable returns are the goal, rather than participants hoping to hit a jackpot like Paranormal Activity or Saw.
“Not every investment needs to be a swing for the fences,” said Legion M co-founder and CEO, Paul Scanlan. “With the Legion M Film Fund, we aim to string together the kinds of singles and doubles that lead to big wins over time. The initiative reflects a broader approach to portfolio construction, offering investors another way to participate alongside the studio through disciplined, distribution-focused opportunities designed to deliver consistent performance.”
Jeff Annison, co-founder and president of Legion M, said the fund “creates huge strategic value by providing P&A for films released by Legion M and our partners, while also giving movie lovers a new way to be a part of the business.” The setup, he added, is “a win for everyone, and yet another example of how we’re building the company to unite fans to change the game.”
Founded a decade ago in response to challenges in the specialty marketplace, Legion M has backed standout titles like SXSW standout My Dead Friend Zoe and William Shatner: You Can Call Me Bill. Upcoming on its slate is Fade to Black, a dark satire of Hollywood in which a striving screenwriter decides to start committing the murders of a serial killer instead of merely depicting them on the page.
The fund is structured so that capital returned from each investment is automatically reinvested into future projects, allowing investors potential to compound returns over time, while also offering periodic opportunities to cash out. By pooling investments across multiple films, the fund aims to diversify risk while maintaining alignment between Legion M and its investor community.
The new fund gives investors three entry points into Legion M projects. The highest-risk of the three is buying directly into production, where investors can earn royalties along with perks like premiere invites or their names listed in the credits. Another pathway is investing like a venture capitalist in Legion M as a studio. The company has raised more than $25 million from nearly 60,000 investors who now have a say in the operation.