Kalshi and Polymarket CEOs Overcome Rivalry to Back $35M Prediction Markets VC Fund

In a remarkable show of unity, the CEOs of rival prediction market platforms Kalshi and Polymarket are investing in a new $35 million venture capital fund focused on the sector.

5(c) Capital, founded by former Kalshi employees Adhi Rajaprabhakaran and Noah Zingler-Sternig, targets infrastructure plays like market makers and index designers.

Bridging the Bitter Rivalry

Despite intense competition and past barbs—including Kalshi CEO Tarek Mansour's admission of enlisting influencers against Polymarket—both leaders are backing the fund.

The fund's name nods to a crucial regulatory clause governing prediction markets, highlighting the sector's legal evolution.

Explosive Growth in Prediction Markets

Kalshi is raising $1 billion at a $22 billion valuation, more than double its value just four months ago.

Polymarket is in talks for funding that could value it at $20 billion, underscoring the market's rapid ascent.

Prediction markets, with roots in academic experiments like the 1980s Iowa Electronic Markets, have surged thanks to crypto innovation and recent U.S. regulatory approvals.

The fund plans to support about 20 startups capitalizing on the second-, third-, and fourth-order effects of this boom.

Prestigious backers like Marc Andreessen via Moneta Luna and Ribbit Capital's Micky Malka bolster its credibility.

This unlikely alliance signals the prediction markets industry's maturation, paving the way for broader applications in finance, politics, and risk management.

Looking ahead, such investments could accelerate infrastructure development, making event forecasting more accurate and accessible worldwide.