Despite bitter rivalry, Kalshi, Polymarket CEOs back $35M predictions markets VC fund

In the competitive landscape of prediction markets, few rivalries are as pronounced as that between Kalshi and Polymarket. Despite their ongoing competition, the leaders of both companies have found common ground by backing a new venture capital firm, 5(c) Capital, which focuses on prediction markets. This firm was founded by former employees of Kalshi and aims to raise $35 million for its inaugural fund. 5(c) Capital derives its name from a regulatory clause that governs prediction markets, emphasizing its focus on this niche. Among the notable backers are Kalshi's CEO, Tarek Mansour, and Polymarket's CEO, Shayne Coplan. Other significant investors include Marc Andreessen, through his investment in Moneta Luna, and Micky Malka, founder of Ribbit Capital. Kalshi has confirmed Mansour's investment, while Polymarket has not yet commented. The mission of 5(c) Capital is to support entrepreneurs looking to explore the broader implications of the rapidly expanding prediction market sector. Their investment strategy focuses on enhancing the infrastructure of this market, with plans to invest in around 20 companies, including those specializing in market making and index design. The firm is led by Adhi Rajaprabhakaran, a trader from Kalshi, and Noah Zingler-Sternig, who previously served as Kalshi's head of operations. Meanwhile, Kalshi is in the midst of raising $1 billion, aiming for a valuation of $22 billion, which marks a significant increase from its previous valuation of $11 billion just months ago. In a parallel development, Polymarket is reportedly negotiating with investors for a funding round that could position its valuation at $20 billion.