Frec is a technology company.
Frec has raised $26.0M across 1 funding round.
Frec has raised $26.0M in total across 1 funding round.
Frec has raised $26.0M in total across 1 funding round.
Frec's investors include 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.
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It serves individual, joint, trust, and business account holders frustrated with high-cost wealth managers and outdated tools, solving the problem of inaccessible sophisticated strategies by making them simple, ETF-like, and tax-optimized.[2][4] Backed by Series A investors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]
Frec has raised $26.0M across 1 funding round. Most recently, it raised $26.0M Series A in October 2023.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Oct 1, 2023 | $26.0M 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 |