In recent years, a paradigm shift has swept through the financial world, with companies offering enticing “micro-shares” in an array of assets. From commercial real estate to luxury sports cars and priceless artworks, fractional ownership is luring investors with both financial potential and a taste of the high life.
This is not something new, but it will be commercialized to a point where the average fan can get involved in the sport. For example, there were micro-shares of a horse named Authentic, and 4,600 people bought the $206 a share and became owners of a Kentucky Derby Winner.
Who knows, you might be able to browse through the 2023 Breeders’ Cup News and find out what the odds are of your horse winning the race.
Experiential Squared’s Ascension: $7 Million in Funding
Experiential Squared recently secured an impressive $7 million in new capital, led by the prominent 1/ST Racing & Gaming and 1/ST Technology.
This infusion of funds is set to fuel the expansion of Experiential Squared’s flagship product, MyRacehorse, and potentially catapult it beyond the boundaries of the racetrack.
Michael Behrens: Visionary Leader
At the helm of this revolution stands Michael Behrens, Founder, and CEO. Behrens made history by securing certification from the Securities and Exchange Commission, allowing his company to raise up to $75 million in securities through crowdfunding.
With this groundbreaking approval and the support of co-founder B. Wayne Hughes, Behrens transformed MyRacehorse into a platform offering securitized ownership shares in horses.
This is quite revolutionary for the world of horse racing, and you and I will be able to own real-world horses soon.
Beyond financial stakes, shareholders gained access to trainers, jockeys, and the chance to win exclusive experiences, creating a thriving community of over 50,000 active owners.
Passion Investment Over Profit
While fractional ownership ventures hold financial potential, most participants are driven by passion rather than profit.
Tim Derdenger, an associate professor of marketing and strategy at Carnegie Mellon, aptly describes these investments as “play money.” The returns may be modest, and risks exist, but the allure of genuine involvement keeps enthusiasts engaged.
Becoming a racehorse owner is all about being passionate about the sport, and with the MyRacehorse model, this was proven.
A Glimpse into the Future
Behrens sees MyRacehorse as more than just a financial platform. Drawing on his background as a former chief marketing officer at online mattress brand Casper, he recognizes its potential as a powerful marketing tool.
It not only elevates the sport but also attracts sponsors seeking to engage a highly dedicated audience. With the newfound capital, Behrens plans to enrich the platform’s content offerings, enhancing the overall ownership experience.
But it is just the start. In the future, many new possibilities might emerge leading to not just ownership but also being involved in the decision-making through community voting and more.
Including Different Sports
Experiential Squared is not content with its current success. Behrens has his sights set on early 2024, when the company will venture into another sport, with preliminary discussions involving NASCAR.
Unlike public ownership novelties like shares in the NFL’s Green Bay Packers, Experiential Squared offers tangible benefits of ownership, creating a more immersive experience for fans.
The possibilities for bringing the community into sports could be limitless. Later it could be possible own a percentage of an F1 team, or own a Triple Crown horse racing champion.
Challenges and Caution
But the process won’t necessarily be straightforward. Derdenger remains skeptical about this expansion, particularly with mature assets like NASCAR teams.
He questions the potential for significant returns and wonders if this will primarily serve as a premium fan club rather than a lucrative investment. The balance between risk and reward becomes more delicate in these scenarios.
Democratizing Ownership: The Road Ahead
Behrens envisions a future where part of the new capital is directed toward building an innovative online marketplace.
This platform would eliminate the need for Experiential Squared to own the assets directly, creating a secure space for buyers and sellers across various sports. The aim is to democratize ownership across different asset classes, opening doors for enthusiasts worldwide.
This is a new method that might change the world of sport forever. People could be able to purchase, sell, and trade their rights to a certain sporting team, horse, or moto-sport team.
Not only it will bring new money into the industry, but also it will bring sports fans closer and help them feel more engaged. After all, sport is about passion and there could be no better way than being an owner of your favorite athlete or a team.