Legion, a blockchain crowdfunding startup, has raised US$5 million seed round from VanEck and Brevan Howard Digital.

The company aims to create a platform for startups to sell tokens to retail investors, a group typically excluded from the traditional IPO process.

Legion’s co-founders said they want to offer a system for “onchain” public offerings and have met with the US Securities and Exchange Commission to discuss disclosure requirements for token sales.

Other investors in the round include Coinbase, Crypto.com, Kraken, Cyberfund, Blockchain Builders, and GSR.

Legion’s approach resembles previous blockchain fundraising models, such as ICOs, but with more focus on compliance and professional support.

The funding comes as interest in public token launches rises in the US, after recent successful sales by projects like Bitlayer and Lombard.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Token fundraising returns with institutional backing after regulatory reckoning

Legion’s $5 million raise signals a revival of blockchain-based fundraising, but with a dramatically different landscape than the 2017 ICO boom.

During 2017’s peak, ICOs raised nearly $3.9 billion, with December alone accounting for over $1 billion from 45 successful offerings1. Major projects like EOS raised $4 billion, making it the largest ICO in history2.

However, the party ended quickly when regulatory scrutiny intensified and fraud became rampant. Less than half of ICOs survived four months post-offering3.

The current revival shows institutional validation, with established players like VanEck and Brevan Howard Digital leading Legion’s round alongside major exchanges like Coinbase and Kraken.

This institutional involvement contrasts sharply with 2017’s largely retail-driven frenzy, suggesting the market has matured beyond speculative token sales toward more structured, compliance-focused fundraising models.

Legion’s proactive engagement with the SEC about disclosure requirements further demonstrates this shift toward regulatory cooperation rather than the previous era’s “move fast and break things” mentality.

2️⃣ The persistent challenge of democratizing capital markets through technology