November 11, 2024 | Read Online

🦄 Unicorner Startup of the Week:

Frich

✍️ Notes from the Editors

Attracting the Gen Z customer base in any given industry has always been presented as an intense challenge. But is it really?

Frich’s approach—creating a social, gamified environment—is a great model for anything looking to lure Gen Z, including the finance space it tackles.

- Ethan and Arek 🦄

Social Finance App for Gen Z

Frich aims to alleviate the social benchmarking created in the social media age while offering tools and resources to Gen Z to be more financially literate. Its platform offers the ability for users to anonymously answer polls, providing them with points and offering those insights to all, allowing everyone to see how their peers are doing in an increasingly confusing financial climate. It also enables users to receive anonymous advice on how they are doing. In addition, Frich partners with financial institutions, offering its users resources and connections to other platforms to help them do money better.

🔗 Check it out: getfrich.com

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💰 Business Model

Frich earns money primarily through partnerships with financial institutions. Offering advertising and the ability to offer specific services to Frich’s users, Frich collects revenue on a case-by-case basis.

📈 Traction and Fundraising

Raised $2.8 million seed round led by Restive Ventures
Has 500,000 total users
Joined Antler Residency program in September 2021

👫 Founders

Katrin Kaurov, CEO: Previously Vice President of Partner Curation @ SELECT, Model @ Major Model Management, Founder and CMO @ MODELCLUB, Model @ multiple companies, Digital Communication and Media/Multimedia @ NYU Abu Dhabi
Aleksandra Medina, CPO: Previously PR and Social Media @ Issa PR, Model @ multiple companies, Interactive Media @ NYU

🔮 Our Analysis

Generation Z is growing up, learning for the first time how to manage their money in an increasingly dire financial situation. There is a disconnect between the new generations and legacy financial institutions. The research shows that Gen Z is earning less and has more debt than previous generations did, with more than half of Gen Z pointing to increasing costs and the economy for their struggles. At the same time, only 24% of Gen Z can answer basic personal financial questions. Poor financial literacy, poor economic outlook and growth, and increasing inflation are just some of the reasons why.

However, fintech solutions, especially those that are consumer-facing, are significantly influenced by Gen Z. As Gen Z becomes one of the most global generations in history, financial literacy and education, and introduction to the right tools, is one of the fastest growing markets in consumer fintech. With a spending power of $140 billion and growing, most consumer fintech development is focused on these new spenders. As they are the most technologically savvy generation, Gen Z has a significant influence on what fintech products succeed and fail. Robinhood and neobanks led the initial wave, offering direct services that catered to Gen Z. As they won market share, further development in consumer fintech progressed, focusing on different tangents to connect Gen Z’s broader interests. One pivotal shift from prior generations was the willingness to share financial information, with over 90% of Gen Z being willing to share at least some information about their financial situation.

Frich is founded by Gen Z for Gen Z, combining insights and data on Gen Z’s habits to its users, and connecting them with financial partners to help them manage their money better. Coming from marketing backgrounds, founders Kaurov and Medina have grown their user base to over 500,000, growing just 300,000 over the last 3 months. With Frich being an amalgamation of “F*cking Rich”, it has resonated with their target audience. It asks users financial questions every day, then collects and presents the data to all users anonymously, combining comparative insights with social media. As Gen Z is far more willing to share their financial decisions, Frich allows its users to learn from each other while encouraging a more honest form of social media.

The large user base is leveraged to bring other partners to the platform, allowing companies to advertise their products directly to the newest financially independent generation. Many banks know they need to optimize their digital presence to bring in this new customer base, and Frich offers a direct pipeline to at least half a million potential customers. From offering unique deals and custom products, Frich has seen the conversion of its hip users to these legacy companies, proving its thesis of focusing on Gen Z. With overall uncertainty in the short- and long-term economy and growing financial pressures, Gen Z is scrambling fast to catch up and provide for themselves. Frich offers a unique platform that combines everything Gen Z is hooked to, all while also offering other tools and partners to help Gen Z get rich.