New York Mortgage Trust Inc., a real estate investment trust company, has invested in AlphaFlow, a technology platform for institutional investment in real estate debt. Alongside NYMT, Steve Cohen‘s Point72 Ventures, Rebel Fund and Gaingels are investing in the funding round.
AlphaFlow has worked alongside NYMT to provide the firm with access to private real estate lenders across the United States. AlphaFlow provides a best-in-class technology platform in order to deliver institutional capital to non-bank lenders for real estate financing. The firm intends on using the investment to advance its core product while launching a new platform.
“While technology continues to drive efficiencies across a number of consumer categories, stubbornly high transaction costs persist in real estate and its derivative credit markets,” said Ray Sturm, co-founder and CEO of AlphaFlow. “At AlphaFlow, we are shrinking the timescale and exogenous factors that plague the asset backed credit markets. A deep understanding of the regulatory environment, incumbent habitual patterns, capital markets, and technological factors are required to simultaneously move all the pieces necessary for success.”