In the startup world, few rivalries are as intense as the competition between Polymarket and Kalshi in the prediction market sector. Despite their rivalry, the CEOs of both companies are investing in 5(c) Capital, a new venture focused on prediction markets, initiated by ex-Kalshi employees, according to reports from Fortune and Bloomberg.
5(c) Capital, named after a regulatory clause, is targeting a $35 million raise for its initial fund. Alongside Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, prominent investors reportedly include Marc Andreessen, through Moneta Luna, and Ribbit Capital founder Micky Malka.
Kalshi confirmed Mansour’s investment, while Polymarket did not comment.
5(c) Capital aims to support founders capitalizing on the growth of prediction markets and plans to invest in about 20 companies, targeting infrastructure like market makers and index designers.
The fund is headed by Adhi Rajaprabhakaran, a Kalshi trader, and Noah Zingler-Sternig, Kalshi’s former operations head.
Meanwhile, Kalshi is raising $1 billion at a $22 billion valuation, doubling from $11 billion in less than four months per The Wall Street Journal. Polymarket is reportedly in talks for a new round that would value it at $20 billion.