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Rivals Invest Together in New Prediction Market Fund
24 Mar
Summary
- CEOs of rival prediction markets Polymarket and Kalshi are investing in 5(c) Capital.
- The new VC firm, 5(c) Capital, is raising $35 million for its first fund.
- The fund will invest in approximately 20 companies focused on prediction market infrastructure.
The competitive landscape of prediction markets sees a surprising alliance as the CEOs of Polymarket and Kalshi are investing in a new venture capital firm, 5(c) Capital. This firm, named after a regulatory clause for prediction markets, is aiming to raise $35 million for its inaugural fund. Its objective is to support founders developing the infrastructure for prediction markets, including market makers and index designers. The fund plans to invest in around 20 companies, capitalizing on the sector's expansion.
Notable investors reportedly backing 5(c) Capital include Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan. Marc Andreessen and Ribbit Capital founder Micky Malka are also among the reported investors. The fund is led by Kalshi alumni Adhi Rajaprabhakaran and Noah Zingler-Sternig. Meanwhile, Kalshi is reportedly in talks to raise $1 billion at a $22 billion valuation, and Polymarket is discussing a funding round valuing it at $20 billion, underscoring the significant growth and investment interest in the prediction market sector.
