Prediction Market Rivals Kalshi and Polymarket Set Aside Bitter Feud to Back $35M VC Fund

Kalshi and Polymarket are unusually backing a new venture, 5© Capital, despite their well-known ongoing rivalry in the industry. The fund is being launched by former Kalshi employees to raise $35 million for its first investment vehicle, which will support startups in the prediction market ecosystem.

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Kalshi and Polymarket CEOs Among Supporters of 5© Capital

Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, among other notable investors, are supporting 5© Capital, which is focused on developing the prediction market ecosystem. The fund is named after a regulatory provision relevant to the ecosystem, and it plans to raise $35 million for its first fund.

Other notable backers include Marc Andreessen of Moneta Luna and Micky Malka, founder of Ribbit Capital. The involvement of these high-profile investors shows growing institutional interest in prediction markets, even though the sector is highly competitive and still developing its regulatory and commercial framework.

5© Capital Targets Prediction Market Infrastructure

5© Capital is targeting startups building infrastructure within the prediction market ecosystem, including market makers and index designers. The fund is focusing on underlying systems that allow trading, liquidity, and data aggregation to support companies that benefit from the broader expansion of the prediction market.

According to its reported strategy, 5© Capital plans to invest in about 20 companies and back founders that are targeting the “second-, third-, and fourth-order effects” of prediction markets. This initiative is led by partners, including Adi Rajprabhakaran, a Kalshi trader, and Noah Zingler-Sternig, Kalshi’s former head of operations, demonstrating strong ties to the industry’s operational side.

What Are the Top Prediction Markets?

Kalshi and Polymarket are well-recognised prediction market private companies that allow users to trade on the outcomes of real-world events. Other notable platforms include PredictIt, Augur (REP), and Gnosis ($GNO-USD), which offer different models for event-based forecasting and trading. For prediction companies with publicly traded shares, TipRanks Stocks Comparison Center highlights analysts’ top-rated players, such as DraftKings DKNG -1.63% ▼ , Flutter Entertainment FLUT -0.55% ▼ , and Robinhood HOOD -3.63% ▼ .

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