In the competitive landscape of prediction markets, the CEOs of Kalshi and Polymarket have set aside their rivalry to support a new venture capital fund focused on this burgeoning sector. TechCrunch reports that 5(c) Capital, named after a regulatory clause related to prediction markets, is raising $35 million for its initial fund.
Despite the intense competition between the two companies, Kalshi’s CEO Tarek Mansour and Polymarket’s CEO Shayne Coplan are among the investors in this new fund. Other notable backers include Marc Andreessen and Micky Malka. The fund aims to support startups that can leverage the expanding prediction markets, targeting areas such as market infrastructure development and index creation.
5(c) Capital, led by former Kalshi employees, emphasizes investing in founders looking to explore the ripple effects of the growing prediction markets. The fund plans to allocate its resources to around 20 companies within this sector.
While Kalshi is pursuing a substantial funding round, aiming for a $22 billion valuation, Polymarket is also in discussions for a new funding round that could value the platform at $20 billion, showcasing the rapid growth and investor interest in prediction markets.
Source: TechCrunch