AlphaFlow, a real estate investment platform, has returned to Republic to raise up to $5 million in a Reg CF funding round. AlphaFlow is offering a CrowdSAFE with a valuation cap of $120 million. As of today, AlphaFlow has raised over $100,000 from 129 individual investors.
AlphaFlow previously raised money on Republic. In 2021, AlphaFlow raised almost $4 million from investors in a separate Reg CF offering. At that time, AlphaFlow offered a CrowdSAFE too at a valuation cap of $55 million.
A comment by AlphaFlow founder and CEO Ray Sturm outlines the previous funding rounds:
“Our Series A in Nov 2020 was at a $45M post. We took in about $3M more at a $55M cap (SAFE) about 6 months later and in Q1 of 2022 we closed about $7M on a $100M cap (SAFE) with participation from Point72 and New York Mortgage Trust.”
AlphaFlow expects to pursue a priced round in 2023.
AlphaFlow is a marketplace for private real estate loans and the company reports that it has digitized the entire loan cycle having faciliated over $800 million in purchased loan volume and currently enabling around $75 million to $100 million in loans each month. The main focus of the marketplace is single family homes and small multi-family. Less than 10% are commercial projects.
AlphaFlow takes a small percentage of the transaction and the company expects to become profitable within the next 12 months.
According to the AlphaFlow website loans range from $75,000 to $10 million with a short term – less than 36 months. AlphaFlow is a marketplace platform that accepts accredited investors as well as institutional money. An “optimized portfolio” currently generates around a 7.% to 9% return.
The pre-Series B crowdfunding round is accepting investments from all investors at a minimum of $100.
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