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AlphaFlow raises USD4.1m in seed funding round backed by Resolute Ventures and Point72 Ventures

AlphaFlow, an automated alternative investment platform for real estate, has closed a USD4.1 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,” says 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 per cent passive experience that is transparent, aligned with their best interests, and focused on identifying the most favourable risk-return opportunities.”
 
AlphaFlow Optimised 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,” says 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 Optimised Portfolios, boasts broad diversification across hundreds of loans in 29 states, average LTV of 72 per cent, and target net returns between 8 to 10 per cent. With this seed round funding, AlphaFlow intends to continue to innovate in the application of sophisticated finance mechanisms to scale within the investment industry.
 

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