Few rivalries in the startup ecosystem are as intense (and occasionally bitter) as the race between Polymarket and Kalshi for dominance in the quickly rising prediction market area.
Regardless of their fierce competitors, the CEOs of each firms are investing in 5(c) Capital, a brand new prediction market-focused VC agency launched by former Kalshi workers, Fortune and Bloomberg reported.
5(c) Capital, a reputation that references a regulatory clause governing prediction markets, is elevating $35 million for its first fund. In addition to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, notable buyers in the fund reportedly embrace Marc Andreessen, by his funding in a fund Moneta Luna, and Ribbit Capital founder Micky Malka.
Kalshi confirmed that Mansour is investing in the fund. Polymarket didn’t reply to our request for remark.
5(c) Capital seeks to again founders who “need to capitalize on the second-, third-, and fourth-order results” of the quickly rising prediction markets, they reportedly wrote in the funding memo. The fund will spend money on about 20 firms, focusing on the class’s infrastructure, together with market makers and index designers.
The brand new fund is led by companions Adhi Rajaprabhakaran, a Kalshi dealer employed by the firm, and Noah Zingler-Sternig, Kalshi’s former head of operations.
In the meantime, Kalshi is elevating $1 billion at a $22 billion valuation, a two-fold enhance from the $11 billion valuation it achieved lower than 4 months in the past, in accordance to The Wall Avenue Journal, whereas rival Polymarket is reportedly in talks with buyers for a brand new spherical that may worth the platform at $20 billion.
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