The Real Deal New York

Steven Cohen’s VC fund invests in real estate loan platform AlphaFlow

Startup raises $4.1M in seed round
By Konrad Putzier | September 20, 2017 10:00AM

Ray Sturm and Steve Cohen

Online real estate investment platform AlphaFlow raised $4.1 million in a seed funding round led by Steve Cohen’s Point72 Ventures and Resolute Ventures.

Upside Partnership, Social Capital, Y Combinator, Drobny Capital affiliate Clocktower Technology Ventures and Red Swan Ventures also participated in the round.

Founded in 2015, AlphaFlow buys residential bridge loans from crowdfunding companies and hard-money lenders and puts them on what it calls an automated investment platform, where institutions can invest in them.

Founder Ray Sturm, who previously co-founded the crowdfunding company RealtyShares, said AlphaFlow launched its automated platform in March, after raising more conventional real estate debt funds in the past.

To date, AlphaFlow has invested in 482 loans and 305 of them are active, Sturm said. He added that he wants to use the venture funding to build relationships with more lenders and institutional investors and grow its engineering and data team.

Point72 Ventures is the VC arm of Point72 Asset Management, the fund that invests Steve Cohen’s family money and recently signed a 175,000-square-foot lease at 55 Hudson Yards.