No, there are no out of pocket expenses after your initial purchase. The price of a share includes a prepaid amount for the care and training of the horse. In order to ensure the training and maintenance account maintains sufficient reserves race earnings are used to top off the account. In the event additional funds do need to be raised, MyRacehorse will have the option of issuing additional shares at whatever the market price is at that time.
Yes! Your horse company is a for-profit entity. If the horse is ultimately profitable—which is measured against the cost of purchasing the horse, training, and maintenance, and other costs associated with operating the horse series company—you can expect to receive a dividend. Of course, there’s no guarantee that the horse will turn out to be profitable and in many cases horses are not profitable.
Horses are living, breathing, fragile animals and no guarantees can ever be made about the outcome of an investment in a racehorse. Most investments lose money, some break even, a few are profitable, and a select few are extremely profitable. We are here to provide a marketplace to make investing safe, secure and fun, but we are not removing the risk from racehorse ownership.
Our goal is to enrich the horse racing experience for each investor. In addition to having an equity interest in the horse, we offer regular updates on how your horse is doing, free backside tours, farm tours, and events during morning workouts so you can watch your horse and chat with the trainer. When the horse races, you can gain access to the Winner’s Circle and enter a raffle for paddock access. We also have premium (paid) events on race day including owner-exclusive parties.
When you click the Indicate Interest button, you’ll be added to our early access mailing list. We’ll send you an email before the offering is available to the public with a link to purchase shares. Emails are sent out in batches starting with those who Indicated Interest first, so the sooner you click Indicate Interest the sooner you’ll be given an opportunity to invest.
Our goal is to make horse ownership affordable for everyone. Rather than build the 3.5% transaction fee into our price, we’d like to give customers the option to avoid those fees by using a less expensive payment option like an ACH.
As MyRacehorse continues to grow and expand we’ve had a large number of shareholders reach out interested in different types of ownership opportunities. As a result, in addition to our core micro-share offerings, we now have 1) digital bundles for owners who want to solely focus on the online experience and have a small investment across a number of horses, 2) our Edge program powered by MyRacehorse, for owners who are heavily interested in the in-person experience, and want to invest a significant amount in one horse, and 3) Leases, which are unique but offer most of the same perks as the traditional micro-share program.
You can find a quick rundown of the different types of shares we offer here
Leasing the racing rights of a horse has become increasing popular over the last 5 years and has been embraced by many of the industry’s biggest players. The lease is a straight forward agreement between the lessor (owner) and the lessee (lease holder) that specifies a lease price, the duration of the lease, and the percentage of the horse that is leased. Leased horses generally have proven success on the racetrack and established a significant residual value as either a broodmare or stallion prospect.
It is important to note that owners acquire horses for various reasons. Many owners are interested in breeding their stock, more than racing them. Other owners focus solely on racing operations and are in the market to sell their stock to breeders at the end of their horse’s racing career. Leases are a good way to marry these two parties together. An owner who acquires a horse in the midst of their racing career for the sake of breeding may look to enter into a lease to offset some of the cost of their initial investment, while giving the lessee a chance to run after significant purse money in stakes races.
The lease affords the lessee access to top quality racing stock at a fraction of the cost of the horse’s full value, since they do not share in the residual value at the conclusion of the horse’s career. They do however get to campaign a top-quality horse, and reap the benefits of the purse money won throughout that campaign.
In the case of MyRacehorse, the lower acquisition cost translates into a lower share price, which affords the investors a greater chance for a positive return on their investment. Since there is no breeding rights as a part of the lease, the return on investment will be based strictly on the horse’s performance on the racetrack for the lease period.
Anyone over the age of 18 from a qualifying jurisdiction can purchase shares, as long as their investments do not exceed 10% of their annual income or 10% of total assets.
The name on your account is used to report your payouts to the IRS at the end of the year, so it’s important that only one name is associated with each account. That being said, you’re welcome to share your posts via email, Facebook, or Twitter by clicking the share icon at the bottom right corner of the post.
Due to securities regulations, shares cannot be purchased for other people, however MyRacehorse does offer gift cards that you can buy for someone else.
Yes, if there are still shares available and you haven’t hit our investment cap, you’re welcome to purchase more. The only limit is that your total active investments through MyRacehorse should not exceed 10% of your annual income or total assets.
If one of our horses is about to race and shares are still available, we’ll take the listing down at post time. Once the race is over, our team will review the race results and check in with the trainer to confirm that the horse came out of the race in good standing.
If we believe the initial offering is still a fair valuation, we’ll make shares available for purchase again at the same price point within a few days of the race. If our team determines that the race had a significant impact on the valuation of the horse, and as a result the initial share price no longer fairly represents the value of this offering, we will stop offering shares in that series. Management might look into offering the series at a new price. A new price would be subject to qualification by the SEC.
We’ve begun using a standard 1% share cap (on the total available shares) per person during the early access period. Once the early access period ends, the investment cap will be increased, and individuals can purchase up to a 2.99% stake in the applicable horse or horses.
For special circumstances, MyRacehorse does reserve the right to implement the limited number share cap versus the percentage share cap on some of our more high-profile offerings such as Monomoy Girl.
Our mission is to make horse ownership available to everyone at the highest level of the sport and to help introduce more individuals to the sport! Using a share cap helps us reach that goal.
For those interested in more exclusive offerings with smaller groups and more frequent access, MyRacehorse now offers our Edge program. Edge offers ownership at the 5%-10% level. If you’d like to learn more, please feel free to reach out to our MyRacehorse Edge racing manager, Joe Moran, at email@example.com.
We have been aggressively working on the development of a safe, transparent and regulated environment for those looking to trade and transfer shares. We believe providing liquidity is valuable, but only within an environment that has strict governance over the entire process and provides complete transparency and regulatory compliance. We expect to have a solution in place within the next few months. In the meantime, the following process has been put in place to facilitate the transfer of shares:
Step 1 - Disclosure
Before any money exchanges hands, the buyer and seller need to complete a disclosure form. This step is to ensure that buyers and sellers are fully informed of the financial status of any series before the transfer takes place. Please email firstname.lastname@example.org with the name and email address of the buyer and seller, along with the name of the series you're looking to transfer, and we will provide an up to date disclosure form for both parties to sign.
Step 2 - Account Set Up
If they haven't done so already, the buyer needs to set up a MyRacehorse account so we have a place to transfer the shares to. The buyer account needs to be verified, and have an address on file so we have all of the details we need to report any gains/losses to the IRS at the end of the year.
Step 3 - Transfer Fee and Paperwork
-The SEC prohibits the use of general solicitation (i.e. marketing or advertising the shares for sale, this includes but is not limited to social media and paid advertising).
-Active offerings (found on the buy page) are not eligible for transfers for financial consideration.
There is no minimum and the maximum is 10% of your annual income or total assets.
As a qualified security under Regulation A with the Securities Exchange Commision this is one of the investor requirements. No investor may invest in our securities if the investment on the platform exceeds 10% of annual income or net worth, whichever is greater. You will be prompted each time you invest on MyRacehorse (before checkout) to certify the investment you are intending to make meets this criteria.
There are five parts to an offering as fully described in the offering circular, for a summary of the five key components see below:
Asset Cost- Includes the initial purchase price of the horse plus any sales or use taxes, and the associated bloodstock fee.
Operating Reserve Account- The portions of the proceeds that are used to fund the ongoing expenses of the series. These expenses generally include training and care costs, mortality insurance, veterinary, administrative, audit, taxes, transportation, race nomination/entry/starter costs and registration costs.
Management and Due Diligence - Due Diligence covers the expenses for the discovery of the underlying asset and the establishment of the series. The Management fee is for the active management of the series by working with the stakeholders including trainers, vets, bloodstock agents, track reps, finance, legal, insurance brokers and compliance advisors to maximize the performance of the series. No additional management fees will be incurred unless the management performance bonus or sales commission is earned.
Organizational & Experiential - Organizational expenses that are covered include key essential services including legal, compliance, marketing, and establishment of the financial and corporate framework in connection with an Offering of a Series of Interests. The Experiential fee covers the Management of the Membership Experience Program, which includes, but is not limited to content development, management of race day ownership perks, and access to the MyRacehorse Platform™.
MyRacehorse has changed its performance based compensation to reward the manager only for stakes race earnings. On all offerings qualified prior to May 6, 2022 the manager earned ten percent of all gross earnings.
On all offerings qualified after May 6, 2022 the Manager will earn ten percent of gross earnings on stakes races only. Additionally, the manager has lowered its compensation on final sales proceeds to 5 percent (previously 10) on offerings which do not appreciate in value. If the selling price of the horse exceeds the initial purchase price, the manager will earn a 20 percent bonus on the gain.
Yes. Right now the best way to name beneficiaries for your shares in your will. Moving forward, we’re working on updates to the MyRacehorse app and website that will allow owners to name their beneficiary through the account page.
There are never any mark-ups on the horse or their expenses, you pay exactly what we pay. There is a separate one time 15% diligence fee on a closed offering and a 10% fee of gross earnings that covers the ongoing management of the series.
You are buying a stock in a particular series of an LLC that has been validly issued in compliance with applicable securities laws. We establish a series for each horse offered, and stock in that series is what’s being sold.
These are genuine shares issued either under a state permit or through a Regulation A offering.
No. MyRacehorse is a manager of the horse companies and handles the offerings. Experiential Squared, Inc. DBA MyRacehorse itself is a separate company from the horse companies.
If your horse has payouts you’ll receive a 1099-DIV. The intent is for these investment price points to be within reach of the average person – true crowdfunding of racehorses. To ease the tax filing burden, the horse series will issue 1099s.
All horses listed on MyRacehorse undergo an exhaustive diligence process, that includes a veterinarian check, conformation assessment, and value assessment that includes pedigree analysis, race history, remaining conditions, and several other factors that determine the fair market value of a horse. Only horses that meet the vet, conformation and value assessment requirements are eligible to be listed on MyRacehorse. However exhaustive our diligence process is, no guarantees can be made in terms of how successful they will be on the race track. Our goal is to use the best practices, partner with credible horsemen, and be rigorous with our diligence/assessments, but there will always be an element of risk.
We strive to provide updates every week, but some horses will update more or less frequently. Ultimately, it depends on the horse’s trainer and ownership group.
Most MyRacehorse horses have their own owner-exclusive facebook groups. You can find these groups through the “groups” section on the MyRacehorse Facebook page. When you join, you’ll be prompted to enter in the order number for your share to verify your owner status. That order number can be found at the top of the email we sent you to confirm that your order was placed.
If you no longer have a copy of your order confirmation email, you can also find this number by going to the account section of our website, then selecting “Orders” to view a detailed history of your past orders with us.
Yes, but you must be accompanied by a MyRacehorse Owner Concierge. Escorted tours are posted in the app, and are a first come first serve basis. Our terms and conditions with the trainers, tracks and partners, require all microshare investors to be accompanied by a MRH Concierge, so you’ll need an escort regardless of whether you have a state owner license or not.
We've put together this video that outlines what to expect when seeing your horse in person. It also covers some basic safety protocols to keep you and your horse safe.
We have a Certificate of Authenticity available for all MyRacehorse owners. This digital certificate can easily be printed from home, and includes the series name, your horse’s name, as well as the date the investment was originally made.
Log into your MyRacehorse account, and select MyHorses from the main menu. Click on the name of the horse you’d like a certificate of ownership for, then click on the COA tab at the top of the page. From there you can follow the prompts to download and print your certificate.
Yes you can. Whenever one of our horses wins, we provide owners a link so they can directly purchase a winner’s circle photo from the track photographer.
For each horse, we have a select number of passes to provide access to the paddock ring prior to the race. We distribute those passes among a horse’s shareholders via a lottery. You may enter for yourself, or yourself and one guest. Each share that you own of a specific horse entitles you to one entry into the lottery. You only need to enter once, our system will count your shares and make the appropriate number of entries. All entrants are notified of the results the evening before the race with the instructions for the winners on how to receive their credentials.
Yes. Tracks have been extremely supportive of MyRacehorse and in more than 90% of our races we have been granted an UNLIMITED number of Winner’s Circle credentials. When you enter a Paddock Lottery, you are automatically being entered into a Winner’s Circle Lottery. In most cases all entrants will be provided Winner’s Circle credentials. In the case that a finite number of credentials are available, winners will be notified the night before.
Whenever a horse races, its purse (minus expenses) will be used to top of the reserve account, which is what we use to pay for ongoing expenses like stables, training, vet bills, etc. If there’s money left over after filling the reserve, the extra will be distributed among shareholders. A detailed breakdown of how a purse is used will be posted in the update section for each race.
Each horse listing will specify the circuit that the Co-Owner intends to race the horse at. Plans can change over time, and it may be necessary to move the horse to another circuit.
The racing manager and the co-ownership group have the decision making authority as outlined in the co-ownership agreement for each horse.
Micro shareholders do not have any say in how the horse is managed. At present, the stakes are minority participants in the larger horse ownership group, and the intent is for the Racing Manager and the Co-Ownership group to make decisions regarding the horse.
Investments made in micro-shares do not make an individual eligible for an owner’s license.
MyRacehorse aids in the ongoing commitment to the wellbeing of thoroughbreds after racing. We team up with various organizations within Aftercare to find new homes and careers for retired racehorses. Not only do we make charitable donations to these great organizations, we actively participate in the safe transition and long-term placement of retired thoroughbreds.
The term Aftercare in horse racing refers to the safe transition, placement, and retraining of horses once retiring from the racetrack. Some second career examples include eventing, hunter/jumper disciplines, dressage or trail riding. Depending on what is best for the horse, Aftercare organizations may decide to retire certain racehorses to a relaxing environment to live the rest of life out in the pasture at a loving home. Retired horses previously owned by MyRacehorse have gone on to a second career in jumping, breeding with other award-winning thoroughbreds, or just living a healthy and peaceful life with other animals on a farm.
For every share on the platform, MyRacehorse makes a donation to the Thoroughbred Aftercare Alliance (TAA) and we also have made contributions to many other well deserving aftercare organizations including California Retirement Management Account (CARMA) and New Vocations Racehorse Adoption Program.
It depends on their age, soundness and prospects for a second career. MyRacehorse has retired several horses after injury and helped place them in new homes where they can relax and live a healthy life in their natural environment.
We’re working on revamping our UI so customers can update their email addresses themselves. In the meantime, you can send an email to email@example.com requesting an email change and a member of our staff will update it for you.
If you’re having trouble signing in, there’s a link on the Sign In page that allows you to reset your password, located right above the Sign In button. Click on that link and enter the email address you used to set up your account. We’ll email you a password reset link so you can set a new password for your account.
Payouts are issued to your MyRacehorse Wallet. You can view your wallet balance at any time by visiting the Account section of our app/website. Your wallet balance can be applied to any order placed through MyRacehorse.com, or you can request a wallet withdrawal to have your balance sent to you via check or e-payment.
If your payout hasn’t been issued yet, it’s most likely because your account profile is incomplete. Before we can issue any payouts, we need a SSN, TIN, or EIN on file for any shareholder to make sure we have all the info we need to report those payments to the IRS at the end of the year.
You can update your account with your SSN by going to Account, then selecting Manage Profile. You’ll see a field to add your SSN at the bottom of the page, once you’ve saved that into our records it will appear as a string of seemingly random numbers and letters because we encrypt this information on our servers to protect your privacy. Your payout will automatically be issued within 15 minutes of updating your account.
If you’re from outside of the US, you can enter your TIN in the SSN field. If you’ve set your account up under a company’s name instead of your own, you can enter your EIN into the SSN field instead.
With regard to communications by MyRacehorse on the Site to gauge interest in a potential Securities offering pursuant to the Regulation A exemption from the registration requirements of the Securities Act, including opportunities to “reserve” Securities as indications of interest in the potential offering, please note (i) that no money or other consideration is being solicited thereby, and if sent in response, will not be accepted, (ii) no sales will be made or commitments to purchase accepted until the offering statement for the potential offering is qualified by the U.S. Securities and Exchange Commission, (iii) any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance is given after the qualification date, and (iv) an indication of interest is non-binding and involves no obligation or commitment of any kind.
All investors using the Site must acknowledge and accept the high risks associated with investing in the Securities. These risks include holding your investment for periods of months or years with limited or no ability to resell and losing your entire investment; you must have the ability to bear a total loss of your investment without a change in your lifestyle. The Site may contain forward looking statements which are not guaranteed. Potential investors should read all of the investment documents that are provided to them. MyRacehorse is not an investment advisor, broker-dealer or crowdfunding portal and does not engage in any activities requiring any such registration. All investors should make their own determination of whether or not to make any investment, based on their own evaluation and analysis. The Securities are being offered and sold only in jurisdictions where such offers and sales are permitted; it is solely your responsibility to comply with the laws and regulations of your jurisdiction of residence. You are strongly advised to consult your legal, tax and financial advisors before investing.
Multiple offerings of Securities may be conducted on this Site. Prior to any investment in any Securities, you should review a copy of the current offering circular relating to those Securities included in the corresponding offering statement filed with the U.S. Securities and Exchange Commission, by visiting the following url: My Racehorse CA LLC CIK#: 000174448