Coinbase and Union Square Ventures Back $15M Prediction Market Startup Led by Polymarket Alumni

The Clearing Company, founded by former Polymarket and Kalshi executives, has raised $15 million in seed funding led by Union Square Ventures with participation from Coinbase Ventures, Haun Ventures, and Variant.

A New Direction for Prediction Markets

The Clearing Company announced on Wednesday that it is building a next-generation prediction market designed to be on-chain, permissionless, and fully regulated. Unlike existing platforms that have often operated in regulatory gray areas, the startup aims to combine compliance with accessibility, creating a product positioned to appeal to both retail traders and regulators.

Prediction markets allow participants to trade contracts tied to real-world outcomes such as elections and sports results. By aggregating these bets, markets can provide forecasts that reflect the “wisdom of the crowd,” rewarding accuracy through financial incentives.

Strategic Backing from Leading Investors

Union Square Ventures, which has a track record of investing in Web3 leaders including Coinbase and Uniswap, led the round, with Coinbase Ventures also joining. Coinbase has recently signaled an interest in entering the prediction market sector, underscoring growing institutional confidence in the space.

The Clearing Company’s approach of emphasizing transparent infrastructure and regulated liquidity mechanisms has attracted investors who see compliant markets as the key to mainstream adoption.

Leadership with Proven Experience

The startup is led by CEO Toni Gemayel, who previously served as head of growth at both Polymarket and Kalshi. Gemayel oversaw Polymarket’s expansion during a period of rapid growth in 2023 and 2024, particularly in election-related markets.

He is joined by former Polymarket head of markets, Niraek Jain-Sharma, who is credited with designing many of the exchange’s trading products. The engineering team, composed of Liam Kovatch (former head of engineering), Nick Beattie, and Daniel Ramirez, also transitioned from Polymarket.

Building for Scale and Simplicity

The Clearing Company has not yet disclosed a launch timeline, but its public statements emphasize the need for prediction markets that are simple, engaging, and supported by strong liquidity. According to the company, prediction markets should act as “a new kind of news,” surfacing live forecasts that carry real costs for inaccuracy, incentivizing traders to price outcomes without bias.

The startup’s name highlights its focus on “clearing,” the behind-the-scenes process of settling trades and ensuring liquidity. By embedding this function directly into its design, the firm seeks to provide users with a seamless trading experience.

Rising Competition in Regulated Markets

The Clearing Company is entering the market at a time of heightened competition. FanDuel recently partnered with CME Group to launch event contracts, while DraftKings has applied to join the National Futures Association, a move seen as preparation for its own prediction platform.

With $15 million in backing and a team of seasoned operators, The Clearing Company is betting that compliance and simplicity will give it an edge in the emerging regulated prediction market sector.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice