Scarcely any contests within the burgeoning startup landscape are as fierce (and at times acrimonious) as the pursuit between Polymarket and Kalshi for preeminence in the swiftly expanding forecasting exchange domain.
Notwithstanding their intense rivalry, the chief executives from both entities are pouring capital into 5(c) Capital, a nascent venture capital firm concentrating on prediction markets, initiated by former Kalshi personnel, as disclosed by Fortune and Bloomberg.
Bearing a name that alludes to a regulatory provision governing forecasting exchanges, 5(c) Capital aims to secure $35 million for its inaugural fund. Distinguished financiers reportedly backing the fund, in addition to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, comprise Marc Andreessen – via his stake in the Moneta Luna fund – and Ribbit Capital founder Micky Malka.
Kalshi validated Mansour’s participation as an investor in the fund. Polymarket, however, offered no reply to our query for input.
In their investment prospectus, 5(c) Capital reportedly stated its objective: to support entrepreneurs intent on “capitalizing on the second-, third-, and fourth-order effects” stemming from the burgeoning prediction markets. The fund plans to allocate capital to approximately two dozen enterprises, emphasizing the sector’s foundational elements, such as liquidity providers and index architects.
This nascent fund is spearheaded by its principals, Adhi Rajaprabhakaran, a professional trader employed by Kalshi, and Noah Zingler-Sternig, Kalshi’s erstwhile operational chief.
Concurrently, Kalshi is in the process of securing $1 billion, which would entail a projected worth of $22 billion – a twofold surge from the $11 billion valuation attained in under a quarter, as reported by The Wall Street Journal. In parallel, its competitor Polymarket is allegedly engaging in discussions with financiers for a fresh funding tranche, potentially appraising the platform at $20 billion.
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