Here are the three (basic) steps to create a logo using the Pen Tool of Photoshop and Illustrator's Pathfinder.
The original picture is on top: a horse
We create a path using the pen tool
Save the path
Copy the picture and paste it on a new Illustrator document as fully editable.
Use the degrade tool to fill the background of th semicircle
Substact the shape of the horse
Add the font with the name of the company: White Horse
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