AlphaFlow

Today, I am excited to share some big news about AlphaFlow! As you may have seen us announce in Bloomberg , AlphaFlow has closed our $4.1 million venture capital seed round with a group of incredible investors from both the technology and traditional finance worlds.

The round was led by Resolute Ventures and Point72 Ventures, the venture arm of Steve Cohen’s Point72 Asset Management. It also included participation from distinguished firms like Social Capital, Upside Partnership, and Red Swan Ventures.

Last March, we launched the first automated real estate investment platform. Today, within days of receiving an investment, we’re typically able to place our clients into unique portfolios of 80+ loans across 20+ states. That’s not an improvement on the industry. That’s absolutely reinventing real estate investing. Our company has embraced a culture of credit over volume, which has resulted in a default rate roughly 50% of what we typically see in the industry.

Building a Fintech company that truly changes the investment world requires you to both harness technology and leverage the capital markets. With that tremendous challenge in mind, it’s hard to have better partners than we have brought together here. When groups with the financial and investment expertise of Point72 break down your business and ultimately decide to invest, it’s not only great validation but also a chance to work with some of the industry’s sharpest minds who will improve every piece of our business. Ultimately, that means your portfolios will get even better.

This round will enable us to expand our engineering and data science teams responsible for our analytics suite and investment algorithms. We’ll also expand our lender relationships to allow us to evaluate more investment opportunities while maintaining an underwriting bar that today has us rejecting over 90% of loans we evaluate. Looking forward, we’re working on adding more asset classes as well as the ability to build a customizable portfolio for each and every client.

None of this would be possible without our clients, partners, investors, and all those who have worked closely with us to build the best possible platform. Thank you so much. We’ve come a long way, but we’re just getting started! And we look forward to growing with all of you.

Ray Sturm CEO & Founder alphaflow.com
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SAN FRANCISCOSept. 20, 2017 /PRNewswire/ — 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 staging.alphaflow.flywheelsites.com.
I Want a Fully Optimized Portfolio
 
Industry-leading data and analytics company, CB Insights, has included AlphaFlow in its Real Estate Emerging Tech Market Map. We’re honored to be recognized as one of the leading companies in the growing real estate technology space.
 
You’ll find AlphaFlow in the Investment/Crowd Financing category on the residential side of the map:
 
CB Insights map
 
Per CB Insights: “Real estate is a massive asset class representing trillions of dollars in value. To date, the industry has not been thoroughly affected by technology and software … Real estate technology companies are attacking the vertical from a variety of angles and to-date startups have found notable success creating ad-based residential real estate sites.
 
The team at Alphaflow is dedicated to offering investors the simplest and most diversified solution for investing in fixed-income real estate alternatives through our AlphaFlow Optimized Portfolios. With connections to all the leading real estate crowdfunding platforms, AlphaFlow is a major contributor to this Fintech ecosystem.
 
 

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AlphaFlow Adds Veteran Fintech Executive AdaPia d’Errico To Management Team

Investment Management Firm Expands Team of Real Estate, Tech and Lending Leaders to Offer AlphaFlow Optimized Portfolios to More Investors and Institutions

SAN FRANCISCO, May 15, 2017/Businesswire — AlphaFlow, the first automated portfolio service for real estate investments, announced today that veteran fintech executive AdaPia d’Errico has joined the company as Chief Operating Officer to scale the investor platform and expand AlphaFlow’s customer channels.  Ms. d’Errico is nationally recognized for growing businesses through brand advocacy and designing innovative platforms that build engaged communities. She has been at the forefront of real estate crowdfunding since 2014, advocating the power of increased transparency, education and technology to provide opportunities in real estate investments. “AdaPia’s passion, vision and execution are renowned in the fintech industry, as she was a key player in giving real estate crowdfunding national awareness, especially amongst investors,” AlphaFlow co-founder and CEO, Ray Sturm, said. “I’m thrilled to have AdaPia here as a partner and leader of the firm. Her track record, experience, and ability to apply innovative methods to reaching audiences will be fundamental to building AlphaFlow into the premier real estate investment service for high net worth individuals, wealth managers and registered investment advisers,” he added.
adapia-derrico-headshot-alphaflow Ms. d’Errico’s career spans retail banking, investment management, intellectual property and brand development, and financial technology. Most recently she was Chief Marketing Officer at Patch of Land where she led brand, marketing strategy and operations, and built the investor platform. Prior to Patch of Land, she provided brand and online growth strategy services to consumer and media companies in the US and the UK, and co-founded two businesses.  Ms. d’Errico has over 10 years of experience in banking and investment management with a focus on customer management, client communications and investor relations. Ms. d’Errico stated, “I am beyond excited and honored to join AlphaFlow and the incredibly talented team that Ray has already assembled.” She added, “AlphaFlow Optimized Portfolios are the evolution of online real estate investing. We are at the intersection of robo-advising and real estate; technology and analytics combined with human-powered real estate expertise and experience. I share the company’s passion for providing a seamless investor experience built around passive investing, diversification, trust, transparency, and the utmost in customer service and care.”
AlphaFlow continues to grow its team with key people from the marketplace lending industry; earlier this year the company hired Miles Deamer, an early LendingHome employee who scaled lending operations there. Mr. Deamer is responsible for portfolio management along with Mr. Sturm. AlphaFlow Optimized Portfolios are a truly passive, highly diversified and fully transparent managed portfolio service, bringing to real estate what ETFs brought to stocks. For a low minimum investment, each client’s capital is invested in 1st lien real estate loans to produce a personal portfolio of 75-100 notes spread across 15+ states, selected, rebalanced and managed by portfolio managers with the help of smart automation, algorithms and analytics. About AlphaFlow AlphaFlow is an investment management company that applies best practices of professional investment management like diversification, rebalancing, and institutional-quality data analytics, automates them so that investors can receive these benefits without the high fees and high minimums of traditional real estate investing. AlphaFlow Advisor, LLC is a registered investment advisor based in San Francisco, CA. For more, visit alphaflow.com. back to top