Horse racing is a beloved sport but breaking into the industry requires a hefty investment; an average racehorse sells for over $75K. But MyRacehorse is an app that brings racing fans closer to the action by allowing all fans to become owners through micro shares of .1%-.5% equity positions, with minimum investments as low as $100.
LA TechWatch sat down with CEO Michael Behrens to learn more about the app, the future plans for the business, and the state of horse racing.
Tell us about the product or service that MyRacehorse offers.
Experiential Squared develops sports based experiential investment platforms. These are securities compliant equity investments within specific sports industries allowing fans a unique connection with their favorite sport. We launched our first platform – MyRacehorse – in May of 2018. MyRacehorse is an app that allows horse racing fans to have an equity stake in a racehorse. The average racehorse sells for just over $75K and costs about $40K a year to maintain making ownership inaccessible for most fans.
However, with MyRacehorse virtually all fans can become owners through the MyRacehorse app buying micro shares in .1%-.5% equity positions. Minimum investments are as low as $100. With your equity position, a suite of unique content and experiences are unlocked. Updates from the trainer and jockey are delivered directly to owners via the app. Owners are also eligible for tours to the barn to visit their horse and invited to exclusive owner-only events at the races.
How is MyRacehorse different?
There is nothing like it available in horse racing today. There are partnerships that have facilitated fractional ownership, but minimum investments are normally north of $10K.
What market is MyRacehorse attacking and how big is it?
Horse racing alone is a $100B global market. Experiential Squared is also looking at motocross, Nascar, drag racing, UFC, and several additional sports to add experiential investing.
What is the business model?
A 15% fee for each offering closed on the platform with a monthly management fee.
We have internal governance processes in reviewing all expenses, but the fundamental change we are bringing is full transparency. All of our expenses are shared with the individual owners.
Tell us a little about your background and what inspired the business?
I have spent my career in marketing and technology, and I recently served as the CMO of Casper, one of the fastest growing start-ups ever. David Kandasamy (cofounder) is a technology executive, who founded and sold one of the first bid management technologies (Search Rev) in Ad Tech.
Tell us what building your company in LA has been like?
We love our offices in downtown Claremont which provides us a great central location to build up our business in San Diego, Arcadia, and Cypress and access to a great local talent pool.
What are the milestones that you plan to achieve within six months?
We are proving out the efficacy of the idea via our California launch and plan to be national by the end of the year. In the next six months, we expect to reach over $1M in micro investments and acquire well over 1K investors during our pilot.
If you could be put in touch with one person in the LA Tech tech community who would it be and why?
Michael Dublin of Dollar Shave Club. I have a lot of respect for his ability to truly develop content that engages, connects and catalyzes such a strong viral coefficient. His ability to converge story-telling, digital media and advertising is very unique and powerful.
What does being “Made in LA” mean to you and your company?
Being made in LA is the ability to have a broader view of issues, to see products and brands through the eyes of different lenses. I think those that create brands in LA bring the world products that have an inherent multidimensionality to them.
What’s your favorite outdoor activity in LA?
Hiking with the family. We love heading up to Chantry Flats for a family hike.