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Zanda Strofield in the capacity of the manager and director of THOROUGHBREDS.AI PTY LTD ABN 67 687 085 472 has decided to seek investors for the business THOROUGHBREDS.AI and has requested that Allbiz Deal Room Pty Ltd (ABN 56 630 339 150) serve as the process's communication medium. This confidential information memorandum ("Memorandum") has been prepared for selected parties with a preliminary understanding of the business of THOROUGHBREDS.AI and to assist the recipient of the memorandum ("Recipient") in making their own independent appraisal of THOROUGHBREDS.AI before making any investment. The memorandum does not purport to be complete or contain all of the information that a prospective investor may require. No representation or warranty is made (or will be made in any investment agreement) as to the accuracy, reliability, or completeness of any information contained in this memorandum for THOROUGHBREDS.AI, or the directors or shareholders of THOROUGHBREDS.AI, the consultant Matthew Holland, or Allbiz Deal Room (ABN 56 630 339 150).
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1. A MESSAGE FROM THE FOUNDER
As a professional punter who has witnessed the thoroughbred industry's reliance on outdated methods, I'm passionate about bringing data science to the Sport of Kings to revolutionise investment decisions and outcomes.
A MESSAGE FROM THE FOUNDER
At THOROUGHBREDS.AI, we're not just building another tech startup—we're transforming a centuries-old industry that has stubbornly resisted modernisation. My journey to founding this company began at the intersection of two passions: thoroughbred racing and data science.
For years, I've watched sophisticated investors make multi-million dollar decisions about thoroughbred purchases using little more than pedigree papers, visual assessments, and gut instinct. The result? Staggering failure rates that would be unacceptable in any other investment class. When only 14.5% of racehorses earn back their purchase price and a mere 5.1% recoup their full investment, it's clear the industry is crying out for innovation.
My background as both a professional punter utilising data science for racing analysis and my experience developing complex data programs (including the largest political data system still used by one of Australia's major political parties) has positioned me uniquely to address this opportunity. I've spent years developing predictive models for thoroughbred performance and have seen firsthand how proper data analysis can dramatically improve investment outcomes.
What drives me is not just the commercial opportunity—though that is substantial—but the chance to transform how this beautiful sport operates. Better investment decisions mean not only better returns for owners but also more sustainable breeding practices and ultimately better outcomes for the horses themselves.
The thoroughbred industry represents a perfect storm of opportunity: high transaction values, critical decision points, global scale, and virtually no sophisticated data analytics available to most market participants. With THOROUGHBREDS.AI, we're bringing the power of artificial intelligence, machine learning and advanced analytics to an industry that has been making decisions the same way for generations.
I invite you to join us in this journey to revolutionise thoroughbred investment and bring data science to the Sport of Kings.
2. EXECUTIVE SUMMARY
THOROUGHBREDS.AI leverages AI and machine learning to transform thoroughbred investment decisions in an industry still using outdated methods, dramatically reducing risk and improving outcomes for investors in this multi-billion dollar market.
EXECUTIVE SUMMARY
THOROUGHBREDS.AI is pioneering an AI-powered intelligence platform that revolutionises how thoroughbred investment decisions are made in a multi-billion dollar global industry that still relies predominantly on outdated methods, traditional knowledge, and gut feeling.
Our solution addresses a critical problem: despite the significant capital involved (with average yearling prices of AUD $85,492 in Australia and higher internationally), the thoroughbred racing industry suffers from staggering failure rates. Only 14.5% of racehorses earn back their purchase price, just 5.1% recoup their full investment, and over 80% fail to recover even variable costs. In Australia alone, 8,000-9,000 horses annually never make it to the racetrack due to not being selected for training.
We're creating the first consolidated global database of thoroughbred data, integrating worldwide racing results, sales data, pedigree information, and performance metrics. Through advanced AI and machine learning, we identify success patterns and predictive factors impossible to spot with traditional methods. This enables us to deliver targeted, actionable intelligence for different market participants:
For horse buyers, we answer critical questions about a horse's real value, likelihood of making it to the racetrack, and chances of achieving racing success. For broodmare owners, we identify optimal stallion crosses to produce the best performing offspring. For stallion owners, we provide insights on which broodmares will produce the highest-quality progeny.
Our competitive advantage lies in being first-to-market with proprietary data models, industry expertise, strategic IP development, and plans for future DNA integration. The global thoroughbred market, with approximately 100,000 foals bred annually worldwide, represents a massive opportunity across Australia, the US, and Europe.
THOROUGHBREDS.AI is seeking AUD $250,000 for up to 10% equity to fund data infrastructure development, MVP report creation, go-to-market execution, and strategic partnerships. With a clear roadmap for growth and a seasoned founder with deep expertise in both data science and the thoroughbred industry, we're positioned to transform this traditional industry through modern technology.
3. HISTORY AND KEY BUSINESS MILESTONES
From concept to creation, THOROUGHBREDS.AI's journey demonstrates our commitment to bringing data science to horse racing, with significant milestones already achieved in database development and analytical models.
HISTORY AND KEY BUSINESS MILESTONES
THOROUGHBREDS.AI was conceived in 2023 when founder Zanda Strofield identified a critical gap in the thoroughbred industry: despite the billions invested annually in thoroughbred horses globally, investment decisions were still being made using outdated methodologies with minimal data analysis. Having experienced success as a professional punter using data science for racing analysis, Zanda recognised that similar analytical approaches could transform the entire thoroughbred investment ecosystem.
2023: Company Conception
The company's foundation was built on Zanda's unique combination of deep thoroughbred industry knowledge and extensive data science experience, including developing Australia's most sophisticated political campaign data system still used by one of the country's major political parties. This background provided the perfect launching pad for creating a revolutionary AI-powered thoroughbred investment intelligence platform.
Late 2023: Market Validation
By late 2023, initial research confirmed the market opportunity, revealing that despite average yearling prices of AUD $85,492 in Australia, only 14.5% of racehorses earn back their purchase price, with just 5.1% recouping their full investment. These staggering failure rates validated the need for a more scientific approach to thoroughbred investment decisions.
Early 2024: Database Development
The first half of 2024 saw significant progress in database development, with the compilation of comprehensive racing results, sales data, and pedigree information from multiple global sources. This period also marked the creation of foundational analytical models that demonstrated promising accuracy in predicting thoroughbred performance potential.
Mid-2024: Industry Partnerships
Mid-2024 brought the establishment of key industry relationships with leading breeding farms, bloodstock agents, and racing syndicates, providing valuable feedback on early prototypes and confirming market interest. These connections have proven invaluable in refining our approach and ensuring our solutions address genuine industry pain points.
Late 2024: Proof-of-Concept
By late 2024, the company completed proof-of-concept testing that demonstrated a significant improvement in prediction accuracy compared to traditional assessment methods. This success attracted interest from several early industry adopters eager to gain a competitive advantage through advanced analytics.
Current: Seed Funding
Our most recent milestone was securing seed funding from industry insiders who recognised both the commercial opportunity and the transformative potential of our technology for the thoroughbred world. This initial capital has enabled us to accelerate development and prepare for our targeted commercial launch at the Magic Millions January Sale.
4. TYPICAL CUSTOMERS
Our diverse customer segments include major thoroughbred buyers, breeders, syndicates, and auction houses—all seeking data-driven insights to transform multi-million dollar investment decisions in this high-stakes industry.
TYPICAL CUSTOMERS
THOROUGHBREDS.AI serves multiple distinct customer segments within the global thoroughbred industry, each with specific needs and pain points that our AI-powered analytics platform addresses. Our typical customers include:
Yearling Buyers represent our primary target market, ranging from individual high-net-worth investors to professional bloodstock agents and major racing stables. These customers make significant investment decisions at auctions worldwide, with average yearling prices of AUD $85,492 in Australia and much higher for premium bloodlines. They currently rely on pedigree assessment, visual inspection, and industry insider opinions when making purchasing decisions. THOROUGHBREDS.AI provides them with objective, data-driven insights on a horse's real value, probability of making it to the racetrack, and chances of achieving racing success. For these customers, our Buyer Reports (priced at AUD $680) deliver critical decision support that can prevent costly investment mistakes.
Broodmare Owners form another key customer segment, comprising breeding farms and investors who own female horses used for breeding. These customers make crucial decisions about which stallions to breed their mares with, directly impacting the value of resulting foals and their breeding programme's long-term success. Our Broodmare Reports (priced at AUD $1,360) answer essential questions about which stallion crosses will produce the best performing offspring and which pairings will increase the value of their mares.
Stallion Managers who oversee valuable male breeding horses with stud fees ranging from thousands to hundreds of thousands of dollars per cover represent our third major customer segment. These professionals need data-driven insights on which broodmare pairings will produce the highest-quality progeny and how specific breeding choices impact their stallion's commercial value. Our Stallion Reports (priced at AUD $1,360) provide these critical insights.
Pinhookers – specialists who purchase young horses with the intention of reselling them at a profit after further development – comprise another valuable customer segment. These customers operate on relatively thin margins and need accurate insights on value appreciation potential. Our Pinhooking Reports (priced at AUD $410) help identify undervalued horses with strong development and profitability potential.
Auction Houses like Magic Millions, Inglis, Keeneland, and Tattersalls represent potential enterprise customers who could offer our analytics as value-added services to their buyers and sellers, enhancing the appeal of their sales platforms while improving outcomes for their clients.
Racing Syndicates that pool investor funds to purchase thoroughbreds represent our final core customer segment. These organisations need to demonstrate disciplined, data-driven selection processes to attract and retain investors. Our analytics provide them with sophisticated assessment capabilities that can be prominently featured in their investor marketing materials.
5. MEET THE TEAM
Led by our founder with deep expertise in both data science and thoroughbred racing, our team combines technical innovation, industry knowledge, and proven business acumen to transform horse investment.
MEET THE TEAM
THOROUGHBREDS.AI is led by a founder with exceptional cross-domain expertise and backed by a network of specialists poised to join as the company scales. Our leadership and planned team expansion ensure we have the right balance of technical capabilities, industry knowledge, and business acumen.
Zanda Strofield - Founder & CEO Zanda brings a rare combination of data science prowess and thoroughbred industry insight to THOROUGHBREDS.AI. As a professional punter who has successfully applied data science techniques to racing analysis, he has developed sophisticated predictive models for thoroughbred performance that have consistently outperformed traditional assessment methods. His technical credentials include developing and designing the largest, most complex data program in Australian politics, which continues to manage campaigns for one of Australia's two major political parties to help decide the country's leadership.
Zanda is a big data specialist with a rare combination of technical expertise, sales acumen, and real-world implementation experience at the highest levels of Australian politics and business.
Before founding THOROUGHBREDS.AI, Zanda served as General Manager of Sales at one of Australia's fastest-growing startups, demonstrating his commercial capabilities and leadership skills. This business background ensures that our powerful technical solutions are developed with clear commercial applications in mind. His deep connections within both the Australian tech ecosystem and the global thoroughbred community provide THOROUGHBREDS.AI with invaluable networks for both development and market entry.
With over ten years of high-level sales and marketing experience, including directing sales and marketing for Australia's fastest growing startup at the time, Zanda bootstrapped his data consultancy using proceeds from these successful ventures. While building his business, he simultaneously learned to code and developed state-of-the-art software that could rapidly prototype complex big data solutions—reducing the time to deploy working machine learning algorithms from months to days. This technical foundation enabled him to create and execute one of Australia's largest private big data projects, operating over 8.5 billion data points—the largest known private data program in Australia to date.
Zanda operated at the strategic apex of Federal Elections, informing multi-million dollar campaign decisions. His peers recognize him as "one of Australia's true big data specialists—and we're lucky to have 10 to count." Following the 2019 Federal Election, a former Cabinet Minister and President of the political party credited Zanda as providing "the edge" that delivered what many called a "miracle" result.
After completing his intensive political campaign work, Zanda pursued full-time professional gambling—achieving success in a field where only 0.5-1% of participants are profitable long-term—while developing breakthrough applications in thoroughbred breeding. This convergence of elite-level big data implementation, deep domain expertise in thoroughbreds, and proven sales and marketing execution creates a uniquely positioned foundation to revolutionize an industry ripe for disruption. Having navigated the critical gap between ambitious vision and successful delivery across multiple high-stakes environments, Zanda recognizes the implementation pitfalls that typically derail similar initiatives—knowledge that proves invaluable in improving investment outcomes, horse performance and welfare, and value creation for buyers and sellers worldwide.
Team Expansion Plans As THOROUGHBREDS.AI grows, we have identified key talent ready to engage, including a network of PhD-level data scientists previously recruited for major political data projects. Our expansion strategy focuses on bringing in specialists in three core areas:
Data Science & AI Expertise: We will add machine learning specialists, statistical modellers, and AI engineers with experience in pattern recognition and predictive analytics to enhance our algorithmic capabilities.
Thoroughbred Industry Expertise: We plan to bring on board bloodstock specialists, pedigree analysts, and former racing professionals who understand the nuances of thoroughbred assessment and can ensure our technical solutions address genuine industry needs.
Commercial & Marketing Capabilities: As we scale, we'll add team members with experience in SaaS growth, subscription product marketing, and sales professionals with established relationships in the thoroughbred industry.
This balanced team structure will ensure THOROUGHBREDS.AI maintains its technological edge while delivering solutions that resonate with our traditional industry's needs and successfully communicating our value proposition to a market not typically associated with cutting-edge technology adoption.
Our advisory network already includes several respected thoroughbred industry figures who provide valuable guidance on product development and go-to-market strategy, ensuring our innovations remain grounded in practical industry applications.
6. SWOT ANALYSIS
Our analysis reveals powerful strengths in proprietary technology and industry expertise, opportunities in an untapped market, manageable weaknesses, and strategic approaches to potential threats.
SWOT ANALYSIS
STRENGTHS
THOROUGHBREDS.AI enters the market with significant competitive advantages. Our first-to-market position provides a crucial head start in an industry where no commercially available product of comparable sophistication currently exists. Our proprietary data models integrate global thoroughbred information with advanced analytics in ways not available to the general market, creating significant barriers to entry for potential competitors.
The founder's dual expertise in both data science and the thoroughbred industry represents a rare combination that enables us to bridge the technological and cultural gaps inherent in modernising this traditional sector. This industry knowledge means we understand not just the technical requirements but also how to communicate our value proposition effectively to a market that may be initially sceptical of AI-driven solutions.
Our strategic IP development creates protected intellectual property beyond basic LLM applications, making our technology difficult to replicate. Our sophisticated technology stack—including machine learning algorithms for pattern recognition, neural networks for performance prediction, and custom AI solutions for pedigree analysis—positions us well ahead of the rudimentary spreadsheet-based analyses typically used in the industry.
WEAKNESSES
As an early-stage company, we face challenges in building brand recognition and establishing credibility in a traditional industry that may be resistant to technological disruption. Our initial capital constraints limit our ability to simultaneously pursue all potential market segments and geographic regions, requiring a focused approach to market entry.
Data acquisition represents another challenge, as some historical records and performance metrics may be fragmented or inconsistently formatted across different racing jurisdictions, requiring significant effort to standardise and integrate. Additionally, while our founder brings crucial expertise, we currently have limited team bandwidth as we work toward expansion.
OPPORTUNITIES
The thoroughbred industry represents a massive untapped market for sophisticated analytics, with approximately 100,000 foals bred annually worldwide and significant investment levels across Australia, the US, and Europe. The industry's staggering failure rates (with only 14.5% of racehorses earning back their purchase price) create a compelling need for our solutions.
Future integration of genetic factors into our prediction models would create an insurmountable data advantage and open additional revenue streams through DNA-enhanced analytics. The global nature of thoroughbred racing provides opportunities for geographic expansion beyond our initial Australian market focus.
Potential partnerships with auction houses, racing authorities, and breeding associations could accelerate adoption and provide valuable data access. The industry's growing recognition of the need for more scientific approaches to investment decisions creates a receptive environment for our innovations.
THREATS
We anticipate that large stables and breeding operations may attempt to develop similar analytics capabilities in-house rather than adopting our platform. However, the complexity and cost of building comparable systems should limit this to only the largest industry players. As our success grows, established technology companies may enter the market, though our deep industry expertise and early mover advantage would be difficult to replicate.
Industry conservatism could slow adoption rates, requiring careful change management and education. Privacy concerns around proprietary breeding data may create barriers to comprehensive data collection, though our flexible approach allows clients to benefit from aggregate insights while protecting their confidential information.
Regulatory changes in the thoroughbred industry could impact breeding and trading practices, though this also presents an opportunity as more stringent oversight typically increases demand for data-driven decision support.
7. OUR PRODUCTS OR SERVICES
Our suite of AI-powered reports delivers targeted insights to different market segments, transforming subjective assessments into data-driven decisions that dramatically reduce investment risk in thoroughbred racing.
OUR PRODUCTS OR SERVICES
THOROUGHBREDS.AI delivers sophisticated, AI-powered intelligence through a suite of specialised reports designed to address the specific needs of different thoroughbred market participants. Each product leverages our comprehensive global database and proprietary analytical models to transform highly speculative buying decisions into data-driven investments.
Buyer Report (AUD $680) Our flagship product provides potential thoroughbred purchasers with comprehensive insights into a horse's investment potential. This report answers crucial questions that traditional assessment methods cannot address with scientific precision: What is the real value of this horse? What is the probability this horse will make it to the racetrack? What are its chances of achieving class race success?
The Buyer Report incorporates multiple data dimensions, including comprehensive pedigree analysis that goes beyond basic lineage to identify genetic success patterns, performance metrics from related horses across global racing jurisdictions, and comparative sales data that identifies value anomalies in current market conditions. Each report includes a proprietary THOROUGHBREDS.AI Score that quantifies overall investment potential, along with detailed probability assessments for different performance outcomes and clear recommendations regarding purchase price thresholds. This product transforms the traditionally subjective "eye test" and basic statistics into a sophisticated risk assessment framework.
Broodmare Report (AUD $1,360) Designed for breeding farm operators and broodmare owners, this report provides data-driven guidance on optimal breeding decisions. It answers two critical questions: What foal will increase the value of my mare? Which stallion crosses will produce the best performing offspring?
The Broodmare Report includes comprehensive compatibility analysis across thousands of potential stallion matches, identifying genetic combinations with statistically significant performance advantages. It features cross-success probability ratings based on historical outcomes of similar pedigree combinations and projected offspring value assessments under various performance scenarios. This transforms what has traditionally been a highly speculative decision often based on fashion or availability into a strategic investment choice backed by comprehensive data analysis.
Stallion Report (AUD $1,360) Targeted at stud farms and stallion shareholders, this report provides insights on how to maximise a stallion's commercial potential and genetic impact. It addresses key questions including: Will specific breeding matches increase the stallion's coverage fee? Which broodmares will produce the highest-quality progeny?
The Stallion Report features comprehensive mare-matching analysis across thousands of potential broodmares, identifying combinations with the highest probability of producing successful offspring. It includes projected offspring performance metrics across different racing classes and detailed compatibility ratings based on genetic, conformation, and performance factors. This enables stallion managers to make strategic decisions about which breeding applications to accept and how to optimally price their stallion's services.
Pinhooking Report (AUD $410) Specialised for the unique needs of pinhookers who buy young horses to resell at a profit, this report identifies opportunities where market valuations don't align with performance potential. It includes development trajectory projections based on growth patterns and pedigree factors, along with market timing recommendations for optimal resale opportunities. The report highlights value perception factors that influence buyer behaviour at different sale venues, helping pinhookers target their acquisition and sales strategies more effectively.
Boutique Large Scale Consultancy (From AUD $10,000) After industry consultation on the product it is evident that thoroughbred agents, stables and investment funds often have unique requirements. The industry consultation process made it evident these organisations require consultation outside of just singular reports, this will satisfy the need of those who transact many horses or have a large amount of breeding decisions to be made. The consultancy under this revenue model will consist of access to Zanda, or any future high level executive to construct similar reports that are built case by case. This will be delivered using our extensive computer generated intelligence and domain knowledge. Zanda has high level experience "advising the advisors" and considers this an integral part of industry adoption and penetration. As well as revenue growth and brand recognition for thoroughbreds.
8. COMPETITOR ANALYSIS
In a landscape where major stables keep analysis in-house and most rely on basic tools, we stand alone in bringing sophisticated AI solutions to the broader thoroughbred market with no direct competitors.
COMPETITOR ANALYSIS
The thoroughbred investment intelligence market presents a unique competitive landscape characterised by a surprising lack of sophisticated, commercially available analytical solutions despite the billions invested annually in thoroughbred horses. Our analysis of the competitive environment reveals several distinct categories of alternatives rather than direct competitors, highlighting the significant opportunity for THOROUGHBREDS.AI to establish market leadership.
In-House Analytics at Major Operations The most sophisticated analytical approaches currently exist within a handful of major racing and breeding operations that have developed proprietary internal systems. Organisations like Godolphin, Coolmore, and China Horse Club employ data scientists and analysts to develop custom tools for their exclusive use. While these systems represent our closest "competitors," they're not commercially available to the broader market and typically focus narrowly on the specific strategy of each operation rather than offering comprehensive market intelligence.
The limitations of these systems include their isolation (they don't benefit from industry-wide data), their significant development and maintenance costs (making them viable only for the largest industry players), and their lack of sophisticated AI and machine learning capabilities (most rely on statistical regression models rather than advanced neural networks or deep learning techniques).
Traditional Bloodstock Consultants The most common "competitors" are traditional bloodstock agents and pedigree consultants who provide subjective assessments based on experience and industry knowledge. These professionals typically charge between AUD $500-$5,000 for their services but lack systematic analytical frameworks, instead relying on personal expertise, visual assessment ("the walk"), and basic pedigree evaluation.
While these consultants offer valuable perspective, their subjective nature, inconsistent methodologies, and lack of quantifiable success metrics make their recommendations difficult to validate. Their primary limitation is an inability to process the vast amounts of global data necessary to identify subtle patterns that influence thoroughbred success.
Limited-Scope Data Tools A few companies offer narrow-function tools that address specific aspects of thoroughbred assessment. These include services like Arion that provide basic pedigree visualisations, The Thoroughbred Daily News with its rudimentary sire statistics, and various national racing authorities that publish basic performance data. These tools provide useful reference information but lack predictive analytics, cross-jurisdictional integration, and sophisticated modelling capabilities.
Marketplace Gap Most notably, our competitive analysis reveals the complete absence of any comprehensive, AI-powered thoroughbred investment intelligence platform available to the general market. No existing solution combines global data integration, advanced machine learning, and actionable investment intelligence in a commercially available product.
Strategic Positioning THOROUGHBREDS.AI's competitive advantage lies in democratising sophisticated analytics previously available only to the industry's largest players while offering capabilities beyond what even those internal systems provide. By combining global data integration, cutting-edge AI, and deep industry expertise, we're creating a solution category rather than competing in an established market.
Our platform's unique value proposition addresses the critical gap between basic statistical tools and exclusive in-house systems, making advanced investment intelligence accessible to the broader thoroughbred market for the first time.
9. ROADMAP AND GROWTH OPPORTUNITIES
Our three-phase expansion strategy begins with establishing our analytics platform in Australia before expanding globally and integrating DNA analysis to create an unassailable market position.
ROADMAP AND GROWTH OPPORTUNITIES
THOROUGHBREDS.AI has developed a comprehensive growth strategy that balances immediate revenue generation with long-term market leadership. Our roadmap encompasses three distinct phases, each building upon previous achievements while opening new opportunities for expansion and revenue diversification.
Phase 1: Market Establishment (Months 1-12)
Our initial focus is on establishing our core analytics platform and securing early adopters in the Australian thoroughbred market. During this phase, we'll complete our database development by compiling comprehensive global racing data, integrating sales results and pedigree information, and creating foundational analytical models.
The MVP development will include building initial report templates, developing core prediction algorithms, and validating accuracy through historical data testing. Our sales launch will target the Magic Millions January Sale in Queensland, Australia's premier thoroughbred auction, where we'll begin our marketing campaign and secure our initial client base.
Key growth metrics for Phase 1 include reaching 50 paying customers, achieving 85% accuracy in our performance predictions, and establishing partnerships with at least two leading Australian breeding farms. This phase targets first-year revenue of AUD $50,000 primarily through individual report sales, creating the foundation for rapid expansion.
Phase 2: Market Expansion (Months 13-24)
The second phase focuses on geographic expansion and product diversification. We'll extend our market reach to New Zealand and selected Asian markets where Australian bloodlines are highly valued, before entering the larger US and European markets. This expansion will be supported by enhanced data coverage for these regions and localised report formats.
Product development during this phase will include launching subscription services for regular users, creating an online portal for self-service report generation, and developing enterprise solutions for auction houses and large breeding operations. We'll also begin integrating preliminary DNA factors into our prediction models, enhancing accuracy and creating additional competitive barriers.
Growth metrics for Phase 2 include expanding to 250+ active customers, launching operations in at least three countries, and increasing prediction accuracy to 90%. This phase targets second-year revenue of AUD $250,000 through a combination of individual reports and subscription services.
Phase 3: Market Leadership (Months 25-36)
Our third phase focuses on establishing unassailable market leadership through technological advancement and business model innovation. The centrepiece of this phase is full integration of DNA analysis into our prediction models, creating an insurmountable data advantage that competitors cannot easily replicate.
Business model innovation will include launching a comprehensive thoroughbred investment platform with API access for enterprise clients, developing custom solutions for major breeding operations, and creating syndication partnerships where THOROUGHBREDS.AI participates in horse ownership based on our own analytics.
Additional growth opportunities in this phase include developing insurance products backed by our predictive analytics, creating financial instruments for thoroughbred investment portfolios, and expanding into adjacent equine markets such as standardbred racing and sport horses.
Growth metrics for Phase 3 include reaching 750+ active customers, establishing THOROUGHBREDS.AI as the industry standard for thoroughbred assessment, and achieving prediction accuracy exceeding 92%. This phase targets third-year revenue of AUD $750,000 through diversified revenue streams including reports, subscriptions, enterprise solutions, and partnership arrangements.
Long-term vision includes potential expansion into veterinary applications, breeding programme management systems, and creating the definitive global thoroughbred database that becomes the industry standard for performance assessment and valuation.
10. USE OF CAPITAL
The AUD $250,000 investment will fund our comprehensive development strategy across data infrastructure, product development, go-to-market execution, and strategic partnerships to position us for rapid growth.
USE OF CAPITAL
THOROUGHBREDS.AI is seeking AUD $250,000 in exchange for up to 10% equity to accelerate our growth and establish market leadership in the thoroughbred investment intelligence sector. This funding will be strategically allocated across four key areas to maximise our competitive advantage and ensure successful market entry.
Data Infrastructure and Model Development (40% - AUD $100,000)
The largest portion of funding will be directed toward building our proprietary data infrastructure and developing sophisticated analytical models. This includes:
Comprehensive data acquisition from global racing authorities, sales companies, and pedigree databases, ensuring our platform has the most complete thoroughbred dataset available
Data cleaning, normalisation, and integration processes to create a unified global database that enables cross-jurisdictional analysis
Development of our core machine learning algorithms, neural networks, and AI systems customised for thoroughbred performance prediction
Creation of proprietary THOROUGHBREDS.AI scoring methodologies that quantify investment potential across multiple performance dimensions
Computing infrastructure for model training, testing, and deployment, including cloud resources and specialised AI development environments
Preliminary research into DNA factors that can be incorporated into future prediction models
This investment establishes our technological foundation and creates significant barriers to entry for potential competitors by developing proprietary algorithms and accumulated learning that cannot be easily replicated.
Product Development (25% - AUD $62,500)
A quarter of the funding will support the transformation of our technical capabilities into market-ready products, including:
Design and development of our core report templates for Buyer, Broodmare, Stallion, and Pinhooking Reports
Creation of intuitive data visualisations that communicate complex analyses in accessible formats
User experience research to ensure our reports effectively address customer needs and decision processes
Development of our initial web platform for report delivery and customer management
Testing protocols to validate the accuracy of our predictions against historical outcomes
Refinement of our value proposition and pricing structure based on customer feedback
This funding ensures that our sophisticated technical capabilities translate into products that deliver clear, actionable insights even to customers without data science backgrounds.
Go-to-Market Execution (20% - AUD $50,000)
This allocation supports our market entry strategy and initial customer acquisition efforts:
Targeted digital marketing campaigns in thoroughbred industry publications and platforms
Presence at key thoroughbred sales events, including booth space and demonstration capabilities
Direct outreach programme to high-potential early adopters, including personalised demonstrations
Development of case studies and success stories based on early implementations
Sales team resources for the crucial launch phase at the Magic Millions January Sale
Creation of educational content that helps traditional industry participants understand the value of data-driven decision-making
These funds ensure we can effectively communicate our value proposition to a traditional industry and build momentum through strategic early adopter success stories.
Strategic Partnerships (15% - AUD $37,500)
The remaining funds will be used to establish key strategic relationships that accelerate our growth:
Development of integration capabilities with auction house systems to streamline report generation
Partnership initiatives with breeding associations to enhance data access and industry credibility
Collaboration with veterinary and conformation specialists to incorporate additional assessment dimensions
Relationship building with influential bloodstock agents who can become product advocates
Exploration of potential DNA research partnerships to accelerate our genetic analysis capabilities
These strategic relationships will enhance our market position, improve our data access, and create additional barriers to entry for potential competitors.
Investment Process Guide
The directors of THOROUGHBREDS.AI will manage the investment process, including all negotiations, offers, and inspections.
Steps in the Investment Process
Expression of Interest Submission
The investment process begins with submitting your Expression of Interest (EOI) through our project page portal. This initial step requires: Detailed outline of proposed investment terms and conditions Specific requirements or requests related to the investment Supporting documentation that strengthens your expression of interest Clear statement of intended investment amount and structure Note: All expressions of interest at this stage are non-binding and serve as a foundation for further discussion.
Draft Term Sheet Development
Upon acceptance of your EOI, we will prepare a comprehensive draft term sheet that outlines: Proposed investment structure and deliverables Detailed timeline for investment completion Payment terms and schedule Key performance indicators and milestones Rights and obligations of all parties Governance arrangements and reporting requirements Both parties will have the opportunity to review and negotiate the terms before proceeding to the next stage. This collaborative approach ensures alignment of interests and expectations.
Due Diligence Process
A thorough due diligence process is essential to protect your interests and verify all aspects of the investment opportunity. This stage includes: Financial Review Analysis of historical financial statements Review of financial projections and assumptions Assessment of cash flow and working capital requirements Evaluation of existing debt and liabilities Legal and Regulatory Review Verification of corporate documentation Review of existing contracts and agreements Assessment of regulatory compliance Examination of intellectual property rights Operational Assessment Review of business model and operations Analysis of market position and competition Assessment of management team capabilities Evaluation of growth potential and risks Reputation and Track Record Background checks on key stakeholders Review of past performance and track record Assessment of industry reputation Analysis of customer and supplier relationships
Final Agreement Execution
The final agreement serves as the legally binding document governing the investment relationship. This agreement will: Incorporate all negotiated terms and conditions Detail the rights and obligations of all parties Specify dispute resolution procedures Include all necessary warranties and representations Outline reporting and communication requirements Specify conditions precedent to completion All parties should seek independent legal advice before executing the final agreement.
Investment Completion
The final stage involves the secure transfer of investment funds: Fund Transfer Process Obtain final clearance from legal and accounting advisers Prepare necessary documentation for fund transfer Initiate transfer through approved financial institution Transfer funds to designated solicitor's trust account or as agreed Important Considerations Ensure compliance with anti-money laundering regulations Maintain clear documentation of the transfer process Obtain written confirmation of fund receipt Verify that all conditions precedent have been satisfied Post-Investment Steps Confirm receipt of share certificates or investment documentation Establish ongoing reporting and communication channels Implement agreed governance arrangements Schedule initial post-investment review meeting This investment process has been designed to protect the interests of all parties whilst ensuring a smooth and efficient transaction. Each step includes appropriate safeguards and verification procedures to minimise risk and maximise the potential for successful outcomes.
11. CONTACT DETAILS AND THANKS
Thank you for considering this opportunity to revolutionise thoroughbred investment through data science. We welcome your questions and look forward to discussing how you can participate in our growth journey.
CONTACT DETAILS AND THANKS
Thank you for your consideration of THOROUGHBREDS.AI as an investment opportunity. We believe our unique approach to thoroughbred investment intelligence represents not just a compelling commercial opportunity but a chance to transform an industry that has resisted technological innovation despite its significant economic scale.
The combination of our proprietary technology, first-mover advantage, and deep industry expertise positions THOROUGHBREDS.AI for substantial growth in a market that is ripe for disruption. By bringing sophisticated data science to the Sport of Kings, we're not only creating shareholder value but improving outcomes for the entire thoroughbred ecosystem.
We welcome the opportunity to discuss our vision in greater detail and address any questions you may have about our technology, market approach, or growth strategy. Potential investors are invited to arrange a demonstration of our analytical capabilities applied to specific thoroughbred examples that highlight the power of our approach compared to traditional assessment methods.
For further information or to schedule a meeting, please contact:
We're seeking investment partners who share our passion for innovation and can contribute not just capital but strategic guidance as we scale. Our ideal investors bring industry connections, technology expertise, or experience in growing B2B SaaS businesses in traditional markets.
Investment documents, including our detailed financial projections, technical specifications, and customer discovery findings, are available upon request following an initial discussion. Early investors will have the opportunity to participate in our advisory board and help shape the future of thoroughbred investment intelligence.
Thank you again for your interest in THOROUGHBREDS.AI. We look forward to the possibility of partnering with you to bring data science to the Sport of Kings and transform thoroughbred investment for the better.
All figures quoted in AUD unless otherwise specified