Frec emerged from stealth to launch an automated self-service investment platform that aims to simplify sophisticated products traditionally available only via wealth managers. Its flagship product, Frec Direct Indexing, is a direct-to-consumer offering that enables customers to track S&P indices while customizing holdings through Frec’s license of S&P indices. Frec emphasizes daily tax-loss harvesting; its simulations project up to 2.11% additional annual return and claim the ability to capture up to 45% of an investment’s value in capital losses (per the company’s modeled results). The firm charges a flat 0.10% fee for direct indexing and also offers Frec Treasury, which it states can deliver up to 5.02% on cash, plus insured liquidity and automatic transfers. Frec provides portfolio lines of credit that permit borrowing against stock holdings (up to 70% in the product disclosure) and has a partnership with AngelList to power money market funds for venture funds. The company has raised $26.4 million in seed and Series A funding led by Greylock, with participation from Social Leverage and others.

Total raised

$26M

Funding rounds

2

Latest round

Seed

Latest activity

Oct 2023