AlphaFlow raises $10 mn in Series A led by Saluda Grade Ventures

By Pavithra R

AlphaFlow, a tech-driven investment manager, providing professionally managed portfolios of real estate loans to institutional investors, has announced securing $10 mn in Series A funding led by Saluda Grade Ventures.

Ryan Craft, Founder/CEO of Saluda Grade, led the investment and announced joining AlphaFlow’s board. The investment round also saw participation from Y Combinator, Resolute Ventures, Upside Partnership, 10X Capital, Vishal Garg (CEO of Better Mortgage), Gokul Rajaram, and other notable investors. Previous funding also included Clocktower Ventures, Social Capital, and Point72 Ventures.

“The need for AlphaFlow today is clear. 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,” said Ryan Craft.

Founded in 2015, AlphaFlow was built to bring technology and innovation to the massive but fragmented private lending market. The FinTech’s platform empowers local real estate lenders to accelerate decision-making and to grow their businesses by selling their loans to AlphaFlow. The firm touts to be the first to make the $75 bn 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. 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,” said Ray Sturm, Co-Founder and CEO at AlphaFlow.

AlphaFlow’s management team includes top real estate and portfolio management veterans. The firm partners with local private real estate lenders around the country and buys their loans. Its clients include some of the leading institutional investors in the world.

“Lenders understand the need for innovation, but they can’t do it alone. 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,” said Nathan Scharfe, Co-founder and Head of Product Development at AlphaFlow.

Also, read, SentinelOne raises $267 mn in Series F at a valuation of more than $3bn.