Source: Fortune.com
Summary
CeOs of Kalshi and Polymarket, Tarek Mansour and Shayne Coplan, have invested in a new venture firm called 5c(c) Capital, which is raising up to $35 million to invest in prediction market startups. The fund is led by two early Kalshi employees, Adhi Rajaprabhakaran and Noah Zingler-Sternig. Other investors include Marc Andreessen, Micky Malka, and Kyle Samani. The prediction market sector is gaining popularity, with Kalshi and Polymarket raising funds at valuations of $22 billion and $20 billion, respectively.
Our Reading
The numbers tell one story.
Kalshi and Polymarket are in a heated competition, but their CEOs have joined forces to invest in 5c(c) Capital. The fund’s name is a reference to a clause in the legislation regulating commodities and derivatives. The venture firm plans to back around 20 companies over the next two years. Despite the fraught legal situation, the pitch document describes prediction markets as a “generational investment opportunity”.
The calm before the regulatory storm is a familiar phase.
Author: Evan Null
