Prediction Market Rivals Back Same $35M VC Fund
Kalshi and Polymarket CEOs are both investing in a new fund dedicated to prediction market startups.
In a strange twist of competitive dynamics, the CEOs of rival prediction market platforms Kalshi and Polymarket are both putting money into the same venture fund. The fund, led by two former early Kalshi employees, is targeting up to $35 million to invest specifically in prediction market startups.
The two companies are otherwise locked in fierce competition to dominate the rapidly growing prediction market space. Yet both leaders apparently see enough upside in expanding the broader ecosystem to back the same vehicle.
The fund represents a bet that prediction markets are becoming a full-blown sector, not just a two-horse race. By backing adjacent startups, the fund could help build out infrastructure, tooling, and use cases that benefit the entire category.
It's a rare case of direct competitors co-investing in their own industry's growth pipeline.