EXECUTIVE SUMMARY
BACKGROUND
During the past 20 years, American enterprise, particularly small business, the avowed
“engine” of our great capitalistic empire, has seen its ability to raise capital all but extinguished by
market forces and regulatory burden. Who has not heard the statistic that 9 out of 10 startup
businesses fail? An oft repeated statistic that begs the question – why? The answer is simple.
Lack of capital, or access thereto, is far and away the greatest reason for small business failure
in America today.
Seeking to address this problem, in 2012 Congress passed the JOBS Act, landmark
legislation with the potential to re-ignite small business capital formation in a way never before
seen in this great country. Through the JOBS Act certain laws and regulations were born,
including laws related to “crowdfunding” and other direct to investor means of small business
capital formation. These laws create a dynamic shift in how capital is raised for small business,
and have the potential to revolutionize the financial services industry, creating a path to capital
for innovators and entrepreneurs, and creating a new kind of financial services firm such as Legion
Capital.
The new laws provide a framework through which new era venture firms will prosper,
combining conventional venture capital formation with direct marketing, social media and big data.
These new firms will usher in a paradigm shift in corporate finance, with the historic Wall Street
practices giving way to these new disruptive means of capital formation, and the great financial
firms of tomorrow are coming to life in 2016.
LEGION CAPITAL CORPORATION
Legion Capital Corporation was formed in 2015 by noted securities attorney and venture
capital executive James Byrd, along with renowned direct marketing and technology entrepreneur
Shane Hackett. Founders Byrd and Hackett brought together a combined 50 years of venture
capital and direct marketing experience, having together built a number of successful marketing
and tech companies from start up to public company.
Byrd and Hackett founded Legion Capital around a lifetime of building technology driven
direct marketing companies, bringing to Legion over 50 years combined experience in venture
capital, corporate finance and direct marketing.
In February 2016, Byrd and Hackett partnered with GAINS Venture Group, bringing an
esteemed venture capital consulting and management team into the Legion fold. Led by Brad
Hilton, grandson of iconic hotelier Conrad Hilton, and former executive with Hilton Hotels, and
Arlene Pfeiff, a former American Express executive with over 20 years of financial services
management experience, the GAINS team completes the management picture for Legion. Mr.
Hilton has taken the role as President and Director of Legion and Ms. Pfeiff has assumed the
position of Chief Operations Officer and Director.
LEGION CAPITAL MANAGEMENT TEAM
James Byrd, Chairman and CEO
Jim is a veteran corporate and securities attorney and venture capital
executive. Built, advised and managed numerous companies, from start up to publicly trading
company in his distinguished 30-year career. Extensive experience in going public and venture
capital transactions and has tried cases in both State and Federal Courts, as well as in front of
FINRA, the Florida Supreme Court and the U.S. Court of Appeals. Chairman, CEO and Director
of numerous private and public companies, including Vice Chairman of Success Magazine, N.Y.
(1998-2000).
Brad Hilton, President and Director
Brad is the Grandson of iconic American Hotelier Conrad Hilton, one of the greatest
American entrepeneurs in history. As former head of Hilton Hotels Information Technology Group,
Brad helped spearhead an increase in revenue from $700 million to $1.2 billion at Hilton. Brad is
also a noted venture capital executive and founder of GAINS Venture Group, as well as a
renowned philanthropist through his involvement in the Hilton Foundation.
Arlene Pfeiff, Chief Operations Officer and Director
Arlene is a 25 year veteran of American Express, having held the position of Vice
President and heading up several global divisions at AMEX, including customer service and
accounts receivable divisions. Arlene is also a venture capital executive and CEO of GAINS
Venture Group. In addition, Arlene is involved in numerous non-profit initiatives both locally and
internationally.
Shane Hackett, Chief Marketing Officer and Director
Shane is a 25-year media, marketing and public company executive. Shane is
widely renowned as a direct marketing expert having founded, built and managed multiple
broadcast, technology, marketing and training companies. The current Chairman of the Board at
Market Leverage, an Inc. 100 Advertising Firm and Fortune 5000 fastest growing company,
Shane has also owned multiple radio stations and was the producer and creator of “Baseball
Sunday with Joe Garagiola,” “Football Sunday” and “NBA Basketball Sunday.
George Roundy, Chief Information Officer
George has nearly 40 years of experience designing and deploying advanced
technology solutions for corporate and government applications. He is the former Founder and
CEO of eCorridor, a technology consulting company, and CFO of GAINS Venture Group. George
is a renowned philanthropist, having been awarded Humanitarian of the Year by the Arizona
Interfaith Movement as a result of his over 30 years work with the global Hunger Project.
THE BUSINESS
Legion is a direct to market venture firm founded on the principles of crowdfunding and
direct solicitation under the new federal JOBS Act legislation recently passed by Congress. The
JOBS Act and related rules, including the new crowdfunding regulations, allow companies to raise
capital through direct investor solicitation using the internet, social media and other direct to
market means. As a direct to market venture firm, Legion will be able to fund portfolio companies
through such means as Crowdfunding, Reg A+ Offerings (Mini-IPO) and other similar activities.
In August 2016, Legion launched its family of Legion Select High Yield Funds including
the Legion High Yield Secured Fund I and the Legion High Yield Mortgage Fund I, and have
begun operations in both of those funds.
Legion will specialize in alternative investment strategies through a variety of portfolio
companies and funds that Legion either owns, manages or holds equity stakes in, and will
capitalize and groom these companies for larger scale funding either through crowdfunding, Reg
A+ or otherwise.
Legion will generate revenues and profits in a number of ways including:
1. Retainer and due diligence fees associated with investing or acquisition of portfolio
companies and equity stakes in venture deals.
2. Consulting, advisory and marketing fees for services performed on behalf of portfolio
and third party companies.
3. Ownership and equity stakes in portfolio companies and investments.
4. Management fees for management of our family of funds, including a carried profit
interest in the profits of each fund.
In short, Legion Capital is a new era direct to market venture capital and fintech firm, borne
out of digital technology, social media and big data, with a first class management team at the
helm.