The competition between Kalshi and Polymarket has been one of the most closely watched battles in the prediction markets space.
But despite that rivalry, the CEOs of both companies are now backing the same venture fund, reports TechCrunch.
According to Bloomberg and Fortune, Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan are among the investors in a new $35 million fund launched by 5(c) Capital.
A fund focused on prediction markets
The new firm, 5(c) Capital, is raising its first fund focused on startups building around prediction markets. The name references a regulatory clause tied to how such markets operate.
The fund is expected to back around 20 companies, with a focus on infrastructure, including areas like market-making tools and index design.
Alongside Mansour and Coplan, the fund has drawn support from prominent investors. These include Marc Andreessen, investing through Moneta Luna, and Micky Malka. Kalshi confirmed Mansour’s participation, while Polymarket did not respond to requests for comment.
5(c) Capital is being led by Adhi Rajaprabhakaran, a trader at Kalshi, and Noah Zingler-Sternig, the company’s former head of operations.
Both bring direct experience from within the prediction markets ecosystem that the fund is targeting. Even as both sides back the same fund, the race between Kalshi and Polymarket is far from cooling.
Kalshi is reportedly raising $1 billion at a $22 billion valuation, roughly doubling its valuation in just a few months, according to The Wall Street Journal.
At the same time, Polymarket is reportedly in discussions with investors for a new funding round that could value the company at around $20 billion.
