Despite bitter rivalry, Kalci and Polymarket CEOs back $35 million venture capital fund

Few rivalries in the startup ecosystem are as intense (and sometimes bitter) as the race 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 venture capital firm focused on market forecasting launched by former Calci employees, Fortune and Bloomberg reported.

5(c) Capital, a name that refers to a regulatory provision governing prediction markets, is raising $35 million for its first fund. Besides Kalshi CEO, Tarek Mansour, and Polymarket CEO, Shane Coplan, notable investors in the fund include Marc Andreessen, through his investment in the Moneta Luna fund, and Ribbit Capital founder Miki Malka.

Kalshi confirmed that Mansour invests in the fund. Polymarket did not respond to our request for comment.

5(c) Capital seeks to back founders who “want to capitalize on the second, third and fourth-order effects” of fast-growing prediction markets, the investment note said. The fund will invest in about 20 companies, focusing on the infrastructure of this category, including market makers and index designers.

The new fund is led by partners Adhi Rajaprabhakaran, a Kalshi trader appointed by the firm, and Noah Zingler-Sternig, former chief operating officer of Kalshi.

Meanwhile, Calci is raising $1 billion at a valuation of $22 billion, a double-digit increase from 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 about a new round that would value the platform at $20 billion.