Few rivalries in the startup ecosystem are as intense (and occasionally bitter) as the battle between Polymarket and Kalshi for dominance in the fast-growing prediction market arena.
Despite their fierce competition, the CEOs of both companies are investing in 5(c) Capital, a new VC firm focused on the prediction market started by former Kalshi employees. Luck and Bloomberg was mentioned.
5(c) Capital, a name that refers to a regulatory clause governing prediction markets, raises $35 million for its first capital. In addition to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, notable investors in the fund reportedly include Marc Andreessen, through his investment in a Moneta Luna fund, and Ribbit Capital founder Micky Malka.
Khalsi confirmed that Mansoor is investing in the fund. Polymarket did not respond to our request for comment.
5(c) Capital seeks to support founders who “want to benefit from second-, third- and fourth-order effects” of fast-growing prediction markets, according to information in the investment note. The fund will invest in around 20 companies, focusing on infrastructure in the category, including market makers and index designers.
The new fund is led by partners Adhi Rajaprabhakaran, a Kalshi trader hired by the firm, and Noah Zingler-Sternig, Kalshi’s former head of operations.
Meanwhile, Kalshi raises $1 billion in one valuation of $22 billionmore than double the $11 billion valuation it achieved less than four months ago, according to the Wall Street Journal, while rival Polymarket is reportedly in talks with investors for a new round that would value the platform at 20 billion dollars.
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