Old Gold Racing
Using technology, we aim to deliver the experience of owning a racehorse for a fraction of the usual cost
- London, United Kingdom
Categories: Entertainment Mixed Digital/Non-Digital B2C
- Social Media
- Company number
- Incorporation date
- 24 Jan 2019
- Investment sought:
- Equity offered:
OGR aims to digitise owning racehorses. We believe the racing industry is now ready for a new type of ownership model based on technology.
We could not be more excited to launch our business into the racing world; our aim is to bring the joy, passion and happiness of racehorse ownership to a wider audience. OGR aims to revolutionise the way that the UK’s 2nd largest spectator sport is enjoyed.
OGR members will:
• Own a very small share in a real racehorse or racehorses.
• Join a fun community of fellow racehorse owners, to access exclusive and original content including live videos, interviews, replays, behind the scenes stories.
• Interact with the Company and each other (and the horses!) across the digital and analogue worlds.
• Receive invitations to fun meet-ups and events throughout the year.
• Even click through to their bookie.
Our goal is to reach 100,000 members by year 3.
5.7m people attended a race meeting in person last year whilst 9.6m people watched the Grand National on television this year in the UK (but the global audience can reach 600m). Great British Racing’s #STIRRUPSUMMER campaign had total digital reach of 22.1m.
OGR will aim to capture and drive this resurgence of interest in horse racing by placing digital technology at its heart. We have created a media-first business model that is novel, fun, and taps into a huge but under-serviced market: incumbent syndicates are only reaching 35,000 out of a footfall of 5.7m, a conversion rate of only 0.6%: our belief therefore is that there is a huge untapped market waiting for OGR. Funding is now being sought to build the digital platform, the app, and market OGR’s racehorse ownership experience (and racehorses) to racegoers, both to the huge armchair audience and those who come racing and who we believe would like a greater sense of participation through ownership.
Substantial accomplishments to date
Earlier this year (2019) we brought in £60,000 of additional capital into the business
This has allowed us to:
• Commence work on user experience design, software architecture development and internal process mapping.
• Develop the OGR brand and first drafts of the user interface for the mobile application and website.
• Outline terms with and appoint a marketing partner and media buying partner(s) to ensure prudent and effective spend on customer acquisition.
• Appoint 11-times champion trainer Paul Nicholls to train the syndicates’ horses. Bloodstock agent, Tom Malone will assist with the purchase of horses.
• Obtain legal confirmation that our operations do not constitute certain regulated activities.
• Hold multiple meetings with betting companies and betting advisers in order to establish seamless interaction between respective platforms.
• Map out and cost a range of offerings to members and subscribers, from basic entry to premium membership.
• Initiate Facebook and LinkedIn marketing activities.
The Old Gold Racing business model will have multiple revenue streams, including:
• Annual Membership Fees for shares in horses, access to content and our community.
• Cross-Selling Opportunities with external partners
• Revenue from selling ad space in the MyStables feed for promotions.
• Old Gold Racing merchandise.
We believe that profitable debt-free digital media companies with verifiable audiences are sought after by trade buyers. In our view, appetite would be strong for businesses that have cash subscribers – such is the aim of OGR – because user interaction is so easily verifiable. We believe further value to the company could be achieved by offering high margin physical events.
Use of proceeds
There are four main areas of focus:
1) Digital product development – we will design and build the OGR website, web application and mobile applications (iOS and Android). Our minimum viable products will be rigorously alpha and beta tested, and user feedback will be collected to ensure continuous improvement of our products.
2) Internal processes & team expansion – we will look to build a customer relationship management system and databases to allow for a high-level of customisation and customer insight. The funds will also be used to hire and train content creators in content delivery and quality assurance.
3) The first horse – we will purchase the horse for the first OGR syndicate and underwrite its training fees and insurance; the first syndicate will reimburse OGR once fully subscribed.
4) Customer Acquisition & Nurturing – further expenses include the cost of customer acquisition, creation of welcome packs and legal costs.
Please note that the company has a loans totalling £60K accruing 10% interest per annum. The loans are repayable by the 8th March 2021. The proceeds of this round will not be used to pay back these loans.