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Venture Capital News: AlphaFlow Raises $4.1M in Seed Round

2017-09-20
SAN FRANCISCO, CA, Automated alternative investment platform for real estate, announced today the closing of a $4.1 million seed round funding.
AlphaFlow, an automated alternative investment platform for real estate, announced today the closing of a $4.1 million seed round funding, led by Resolute Ventures and Point72 Ventures, the venture capital arm of Steve Cohen's Point72 Asset Management. Other investment partners include Upside Partnership, Social Capital, Y Combinator, Clocktower Technology Ventures, an affiliate of Drobny Capital, Red Swan Ventures, and more.

AlphaFlow's seed round comes two years after the company was established by CEO and former RealtyShares Co-Founder, Ray Sturm. AlphaFlow plans to use the funding to continue scaling successful partnerships with lenders and investors, both accredited individuals and investment managers. Additionally, the company will build out its team, particularly the data science and engineering division responsible for the development of its analytics suite and investment algorithms.

"We are providing investors and financial advisors with the resources they need to diversify their portfolios with real estate through cutting-edge technology and data analytics," said CEO, Ray Sturm. "We are honored and proud to be backed by such esteemed firms and excited about the deep domain expertise in investment management they bring to the company. This funding will enable us to grow even faster and continue to reinvent real estate investing to match what our clients want: a diversified and 100% passive experience that is transparent, aligned with their best interests, and focused on identifying the most favorable risk-return opportunities."

AlphaFlow Optimized Portfolios are available for investment professionals such as endowments, pension funds, RIAs, and wealth managers, as well as by independent investors seeking uncorrelated returns through shortterm, higheryielding real estate loans backed by properties.

"What we look for is extraordinary founders on a mission to upend massive industries stuck in their old model," said Mike Hirshland, Co-Founder of Resolute Ventures. "With Ray and real estate finance we have both in spades, and are thrilled to be on the AlphaFlow team."

To date, AlphaFlow's flagship product, AlphaFlow Optimized Portfolios, boasts broad diversification across hundreds of loans in 29 states, average LTV of 72%, and target net returns between 8 to 10%. With this seed round funding, AlphaFlow intends to continue to innovate in the application of sophisticated finance mechanisms to scale within the investment industry.

About AlphaFlow

AlphaFlow is the first and fastest-growing automated real estate investment management service, offering automatic portfolio diversification for real estate investments. The firm applies data, analytics, and technology to create broadly diversified, passive income-producing portfolios without the high fees and high minimums of traditional real estate investing. Launched in 2015, AlphaFlow Advisor, LLC is a registered investment advisor based in San Francisco, CA. For more, visit www.alphaflow.com.
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