1/ST RACING & GAMING and 1/ST TECHNOLOGY Lead Investors in MyRacehorse with the collective goal of making horse ownership even more accessible
LEXINGTON, Ky.–(BUSINESS WIRE)–#myracehorse–Experiential Squared (E2), parent company to the popular global racehorse ownership platform, MyRacehorse, today announced a $7 million funding round. The funding round is comprised of several investors led by 1/ST, North America’s dominant Thoroughbred racing and gaming company, through its 1/ST RACING & GAMING and 1/ST TECHNOLOGY business divisions. 1/ST RACING & GAMING operates many of the premier racetracks in the United States including Santa Anita Park, Gulfstream Park, Laurel Park, Golden Gate Fields and Pimlico Race Course. 1/ST TECHNOLOGY is horse racing’s largest technology company with a portfolio of products and services encompassing 1/ST BET, Xpressbet and AmTote International, world leaders in pari-mutuel and ADW technologies.
Launched in Los Angeles, California in 2018, MyRacehorse has operated on the simple premise of making racehorse ownership easy to try and accessible to a broader audience. Racehorse ownership is an aspiration for millions, but due to high barriers to entry, antiquated securities laws and lack of technology, ownership was previously unattainable for the vast majority.
Using the MyRacehorse app, prospective owners can review, analyze and purchase a fractional share in their desired racehorse for a single one-time payment of as little as $100. The app serves as the primary platform to follow the journey of racehorse ownership via updates from the trainer, jockey and analysts, with direct and instant payouts of prize money.
The platform currently boasts more than 50,000 active owners and 100 active horses who have won over 160 races worldwide with earnings in excess of $20 million. MyRacehorse is predominantly focused in the United States and Australia and has recently expanded to the United Kingdom and Ireland.
“This is the ultimate strategic partnership; having 1/ST RACING & GAMING and 1/ST TECHNOLOGY as the lead investors not only provides us the capital to accelerate growth, but the strategic assets and access to enhance the ownership experience for our 50,000 plus racehorse owners,” said Michael Behrens, Founder and CEO of Experiential Squared and MyRacehorse. “1/ST RACING & GAMING and 1/ST TECHNOLOGY are progressive leaders in all aspects of Thoroughbred racing and have been supportive of MyRacehorse since the beginning. The partnership affirms 1/ST’s commitment to growing ownership and further immersing fans in our sport.”
“1/ST’s mission to introduce and engage the next generation of fans and owners in innovative and entertaining new ways aligns perfectly with the MyRacehorse concept,” said Aidan Butler, Chief Executive Officer, 1/ST RACING & GAMING. “The ability to become an owner of a Thoroughbred racehorse and to be part of an ownership experience that until now has been inaccessible for many, is truly exciting. We have seen firsthand the success of MyRacehorse and we look forward to helping scale this platform across racing, wagering and beyond.”
The core of the E2 business is a proprietary technology platform that manages compliance, owner experience, content, investing, and financial and tax reporting. E2 operates within global securities regulations to securitize its racehorses, enabling the development of the first truly legal and compliant global racehorse ownership platform serving both accredited and non-accredited investors. Over the last four years, E2 has built a robust and scalable platform to handle scale, and now is focused on feature development, including a move to the blockchain and the launch of a secondary market so owners can trade their shares. This will bring newfound liquidity to a previously highly illiquid industry.
Both MyRacehorse and 1/ST are deeply committed to the well-being of Thoroughbreds after racing, contributing charitable donations to several aftercare organizations and actively participating in the safe transition and long-term placement of retired Thoroughbreds globally.
Legendary businessman Mr. B. Wayne Hughes recognized the early opportunity in the platform investing in seed round funding to become an active partner with his stallion and breeding operation, Spendthrift Farm. “Without the partnership of Mr. Hughes and Spendthrift Farm, we would have never achieved the rapid success that we have,” said Behrens.
Recently, E2 began the process of seeking strategic investors to help the business accelerate its growth with a focus on diversifying into other sports and assets.