SAN FRANCISCO--(BUSINESS WIRE)--AlphaFlow, the leading institutional platform for investing online in real estate debt, today announced a $10 million Series A funding round led by Saluda Grade Ventures.
Ryan Craft, founder & CEO of Saluda Grade, led the investment and will take a seat on AlphaFlow’s board. Additionally, Y Combinator, 10X Capital, Resolute Ventures, Upside Partnership, Vishal Garg (CEO of Better Mortgage), Gokul Rajaram, and other notable investors participated in the round. Previous funding also included Social Capital, Clocktower Ventures, and Point72 Ventures.
“The need for AlphaFlow today is clear,” said Ryan Craft. “The capital markets are starving for yield and the U.S. housing market is desperately in need of more inventory. AlphaFlow’s platform connects these industries and brings together two of the largest markets on the planet. Saluda Grade is excited to bring our capital markets expertise to help accelerate AlphaFlow’s growth.”
AlphaFlow was launched to bring technology and innovation to the massive but fragmented private lending market. The Company’s platform empowers local real estate lenders to accelerate decision-making and to grow their businesses by selling their loans to AlphaFlow. By leading with technology, it is the first company to make the $75 billion fix-and-flip industry available to institutional investors at scale and quality.
“We believe local private lenders are the lifeblood of residential real estate investing,” said co-founder and CEO, Ray Sturm. “These lenders are where real estate developers go to fund their projects, and over the last decade, their role in the U.S. real estate industry has exploded. This round of funding will help us further execute on being the best partner possible to lenders, and Saluda Grade’s world class capital markets expertise is going to be critical in scaling our platform.”
The Series A follows two years of strong growth in which the company established itself as the top platform for institutional investors. AlphaFlow’s management team includes top real estate and portfolio management veterans, but the key to its success lies in its technology platform.
“Lenders understand the need for innovation, but they can’t do it alone,” said co-founder and Head of Product Development, Nathan Scharfe. “AlphaFlow’s software makes it incredibly easy to work with us, and more importantly, is empowering lenders to give their borrowers a simple, fast, and reliable experience.”
AlphaFlow is a technology-driven investment manager that provides professionally managed portfolios of real estate loans to institutional investors. The company partners with local private real estate lenders around the country and buys their loans. We use software to streamline and automate today’s manual workflow and strive for simple and elegant solutions at every step. AlphaFlow’s clients include some of the largest institutional investors in the world.