This week we launched AlphaFlow to bring transparency and insights to your peer-to-peer investments. Today’s investors are having an increasingly difficult time keeping up with portfolios that can often include 5-15 different platforms.
Two years ago, I co-founded what is today one of the industry’s leading platforms. I had responsibility for making sure investors had a great experience. There were challenges my customers had though that no single platform could solve. Many platforms were doing a good job of presenting deals, return metrics, and notifications, but each was doing it in a unique way and customers were having an increasingly tough time checking multiple dashboards. For some, this meant simplifying things and only working with one or two platforms, even if that resulted in missing out on good deals. Others tried to keep up, but few had any understanding of how their portfolios broke down by geography, asset class, sponsor, or even platform. Diversification is one of the fundamentals of prudent investing, but simply understanding your portfolio was becoming impossible in today’s P2P environment.
So what got us here? We’ve come to a tipping point with a combination of (1) fragmentation in the P2P/crowdfunding world (there are over 700 platforms out there today), (2) huge strides by these platforms in building a supply of investment opportunities, and (3) massive investor interest. Historically, Wall Street went through patters of disrupting itself with new products, followed by stabilization. Now that pattern itself has been disrupted, with P2P Investing creating new opportunities and leaving Wall Street to knock on the door to try to participate too. The new equilibrium is now defined by constant disruptions. This creates the types of challenges that only a true third party like AlphaFlow can solve.
My favorite part of working at RealtyShares was always dealing with our customers and helping to bridge the knowledge gap for new investors – many of whom are wildly successful in careers such as medicine, law, or technology – and professional investors who had traditionally dominated these type of investments. Given the increasing number of great (and not-so-great) platforms out there today, we wanted to give investors a single platform to both understand their existing portfolios and to make intelligent decisions on how they invested going forward.
We’re already partnering with some of the industry’s leading platforms, and we’ll continue to add more. There’s a long way to go, but it’s going to be an exciting journey and we’re going to help you absolutely transform the way you understand and manage your P2P portfolio.
If you’re reading this and haven’t yet joined, we hope you will here!
If you enjoyed this post, please share it on Facebook, LinkedIn or Twitter with the links below. Thank you!
About the author:
Ray Sturm is a leading entrepreneur in financial technology, and is currently the CEO of AlphaFlow. Prior to launching AlphaFlow, he founded RealtyShares, one of the P2P industry’s top platforms for real estate investing. His early career in finance included investment banking at Bear Stearns, restructuring at Lazard Frères and private equity at CCMP Capital.
Ray has a BBA-Finance from the University of Notre Dame and a JD/MBA from the University of Chicago.