Kalshi and Polymarket CEOs unite to support $35M prediction markets venture fund

One of the most heated rivalries in the startup world — the competition between Polymarket and Kalshi to dominate the fast-growing prediction markets space — is taking an unexpected turn.

Despite being direct competitors, the CEOs of both companies are supporting a new venture capital firm dedicated to the sector. According to reports from Fortune and Bloomberg, Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan are among the investors in 5(c) Capital, a newly launched VC firm created by former Kalshi employees.

The firm, named after a regulatory clause tied to prediction markets, is aiming to raise $35 million for its debut fund. In addition to Mansour and Coplan, the fund has attracted notable backers, including Marc Andreessen through his investment vehicle Moneta Luna, as well as Ribbit Capital founder Micky Malka.

Kalshi confirmed that Mansour is participating in the fund, while Polymarket did not respond to a request for comment regarding Coplan’s involvement.

5(c) Capital plans to support entrepreneurs looking to benefit from the expanding influence of prediction markets. In its investment thesis, the firm highlighted its interest in companies that can capitalise on the “second-, third-, and fourth-order effects” of the sector’s rapid growth. The fund intends to invest in around 20 startups, with a particular focus on infrastructure components such as market makers and index designers.

The venture firm is led by partners Adhi Rajaprabhakaran, a trader previously associated with Kalshi, and Noah Zingler-Sternig, who formerly served as Kalshi’s head of operations.

At the same time, both Kalshi and Polymarket are pursuing significant funding efforts of their own. Kalshi is reportedly raising $1 billion at a $22 billion valuation — double the $11 billion valuation it reached less than four months ago, according to The Wall Street Journal. Meanwhile, Polymarket is reportedly in discussions with investors about a new funding round that could value the company at around $20 billion.