Frec

Frec, a robo advisory platform, emerged from stealth in October 2023, with the launch of Frec Direct Indexing, its trading algorithm that allows users to track S&P indices and invest with tax savings and customization features. It stands out for its ability to capture capital losses for tax purposes and its comparatively low fee structure. The platform focuses on catering to financially savvy individuals who seek advanced financial products without the complexities and costs associated with traditional wealth management and brokerage services​​​​.

The platform charges an annual fee of 0.10% on direct indexing or USD 100 in annual fees for portfolios with over USD 100,000 in assets under management.

Key customers and partnerships

In October 2023, Frec partnered with AngelList, a crowdfunding platform, to integrate its services within the venture capital ecosystem by enabling venture capital funds to directly generate yields through money market funds. Through this partnership, venture funds associated with AngelList have the opportunity to accrue earnings on their cash holdings using Frec's money market fund services.

Funding and financials

In October 2023, Frec announced having raised USD 26.4 million in seed and Series A funding led by Greylock, with participation from Social Leverage and others. The funds were used to develop Frec's suite of products, focusing on automating self-service investment options for customers including direct indexing and other financial products such as portfolio lines of credit​.