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Frec is a financial technology company based in Orinda, California, that provides direct indexing and automated tax loss harvesting services for individual investors, trusts, and businesses. The platform allows users to invest in individual stocks of major indices like the S&P 500 and Russell 3000 with a $20,000 minimum account balance and a 0.10% annual management fee. In addition to tax-efficient equity investing, the firm offers high-yield treasury accounts for cash management and portfolio lines of credit. Within nine months of its public launch, the company reached $100 million in assets under management and emerged from stealth with $26 million in total funding. The startup is backed by venture capital firms including Greylock Partners, Social Leverage, and Conversion Capital, alongside angel investors like Casper co-founder Neil Parikh. Frec was founded in 2021 by Mo Al Adham.
Frec has raised $52.4M across 2 funding rounds.
Frec has raised $52.4M in total across 2 funding rounds.
Frec has raised $52.4M across 2 funding rounds. Most recently, it raised $26.4M Seed in October 2023.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Oct 3, 2023 | $26.4M Seed | — | Social Leverage | Announced |
| Oct 1, 2023 | $26M Series A | — | Ascend Vietnam Ventures, Citi Ventures, DNX Ventures, Greylock, I/O Ventures, Ligature, Long Journey Ventures, OVO Fund, Think + Ventures, Union Square Ventures, Zero Capital, Zigg Capital, Alexandre Carel, Eric VER Ploeg | Announced |
Frec has raised $52.4M in total across 2 funding rounds.
Frec's investors include Social Leverage, Ascend Vietnam Ventures, Citi Ventures, DNX Ventures, Greylock, i/o Ventures, Ligature, Long Journey Ventures, OVO Fund, Think + Ventures, Union Square Ventures, Zero Capital.
Frec is a financial technology company founded in 2021 that provides low-cost direct indexing, enabling investors to own individual stocks mirroring an index for enhanced tax efficiency, alongside high-interest Treasury cash options.[1][2][4] It serves individual, joint, trust, and business account holders frustrated with high-cost wealth managers and outdated tools, solving the problem of inaccessible sophisticated strategies by making them simple, ETF-like, and tax-optimized.[2][4] Backed by Series A investors including Social Leverage, Greylock Partners, and Conversion Capital, Frec has gained traction with endorsements from tech leaders and a team from companies like Firebase, Twitter, and Coinbase, positioning it in the Wealth Tech and Fintech spaces.[1][2]
Frec was founded in 2021 by Mo Al Adham (CEO) and Sandeep Sripada (CTO), driven by personal frustration with antiquated finance tools and expensive advisors.[2][3] The team, composed of finance enthusiasts from leading tech firms, built Frec to democratize modern, low-cost investing tools for everyday users.[2] Headquartered initially in Orinda, California (with references to San Francisco), early momentum came from notable advisors like James Tamplin (Gumroad CEO), Jana Messerschmidt (Firebase co-founder), and Vijaya Gadde (former Twitter CLO), alongside a Series A raise that fueled product development around direct indexing as an ETF evolution.[1][2][3][4]
Frec rides the direct indexing trend, evolving passive investing like ETFs did for mutual funds, powered by modern tech for scalability and tax alpha amid rising wealth management costs and investor tax awareness.[1][4] Timing aligns with fintech maturation, where Wealth Tech disrupts traditional finance—Frec's inclusion in CB Insights' Fintech and Wealth Tech collections underscores its fit in a market projected to grow as retail investors seek personalization.[1] It influences the ecosystem by lowering barriers to advanced strategies, potentially accelerating direct indexing adoption over ETFs, while benefiting from backers like Greylock to embed in startup wealth tools.[1][2]
Frec is poised to capture share in direct indexing as tax efficiency becomes table stakes for passive investing, with expansions into more indices, AI-driven personalization, and business accounts driving growth.[4] Trends like rising U.S. capital gains scrutiny and fintech consolidation will favor its low-cost model, potentially evolving it into a full-suite platform rivaling incumbents. As adoption scales, Frec could redefine accessible sophistication, turning tax savings into compounded returns for a new generation of investors—much like its mission to outpace ETFs from day one.[1][4]
