The past few months have been choppy for AlphaFlow, a real estate investment platform. Last September, AlphaFlow listed a securities offering on Republic seeking to raise $5 million in a CrowdSAFE. The round never closed, and committed money was returned to investors – there was chatter of institutional funding in the works.
AlphaFlow was a marketplace for private real estate loans with a short term – around 36 months – and a cap of about $10 million. The focus of the marketplace was single family homes and small multi-family with less than 10% being commercial projects.
Today, the AlphaFlow website is offline once again. CI previously reported that it was the end of the line for the firm, but then we received information that AlphaFlow was still holding out hope for a resurrection of sorts. This week, CI received information indicating that AlphaFlow has decided to shut down “due to a liquidity crunch.” The current difficult economic environment and rising interest rates have not helped.
According to our source, AlphaFlow has signed a Letter of Intent (LOI) with another firm to purchase the company’s assets, with all funds going to creditors. Equity holders are probably completely wiped out.
Few additional details are currently available, but CI has reached out to AlphaFlow management for a statement.