Fireplace Raises $1.5M to Bring Bloomberg-Style Infrastructure to Prediction Markets

Fireplace, an expert buying and selling terminal purpose-built for prediction markets, has raised $1.5 million in a pre-seed spherical led by Frachtis, with participation from White Star Capital and a mixture of enterprise and angel buyers by way of Legion and Echo syndicates.

The pitch is simple: prediction markets have scaled very quick, however their infrastructure stays fragmented and retail-grade.

“Prediction markets are one of the crucial highly effective monetary primitives, however the person expertise hasn’t caught up,” stated Sumer Malhotra, co-founder and CEO of Fireplace. “Trading feels sluggish and information-poor. Fireplace fixes that by giving merchants the quickest, most clever terminal.”

Aggregation in a fragmenting market

Prediction markets are unfold throughout completely different platforms, regulatory regimes, and chains. Regulated US venues function underneath Commodity Futures Trading Commission oversight. Crypto venues function on-chain.

Fireplace is positioning itself as a unifying execution layer.

The terminal aggregates markets, liquidity, and execution throughout venues, providing real-time knowledge, superior charting, whale and pockets monitoring, insider exercise alerts, and automatic execution instruments. Its pockets and automation stack are powered by its in-house Enclave Money infrastructure.

Fireplace is glad to announce that we’ve raised $1.5M to construct the neatest buying and selling terminal for prediction markets. 🧵 pic.twitter.com/S14f4eNjWv— hearth (@fireplacegg) February 18, 2026

The most consequential characteristic is sensible order routing. If the identical market exists throughout a number of venues, Fireplace intends to routinely route orders to the best-priced and deepest liquidity pool.

In conventional finance, that is desk stakes. Smart order routing and cross-venue aggregation underpin equities and choices markets. In prediction markets, this layer barely exists.

As platforms multiply, together with new entrants experimenting with derivatives-style primitives and a focus markets, fragmentation turns into structural. Aggregators may change into the connective tissue.

Capital is flowing past platforms

Fireplace’s elevate matches right into a sample: buyers at the moment are funding the ecosystem.

In October 2025, Intercontinental Exchange, the guardian of the New York Stock Exchange, agreed to invest up to $2 billion into Polymarket at a valuation of round $8 billion. The deal included ICE turning into a worldwide distributor of event-driven knowledge to institutional purchasers. This positioned prediction possibilities as sentiment indicators alongside conventional market feeds.

Shortly thereafter, Kalshi raised $1 billion in a Series E at an $11 billion valuation, led by Paradigm with participation from Sequoia, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG, and Y Combinator. At the time, weekly buying and selling quantity had exceeded $1 billion, marking an enormous acceleration year-over-year.

The funding wave is just not restricted to direct platform fairness

Roundhill Investments has additionally filed with the SEC for six politically focused prediction market ETFs, together with merchandise such because the Roundhill Democratic President ETF and Roundhill Republican Senate ETF. If authorized, these would mark the primary exchange-traded funds tied straight to occasion contracts regulated underneath the Commodity Exchange Act, opening the sector to brokerage-based retail buyers.

Meanwhile, Flutter Entertainment, guardian of FanDuel, has introduced plans to make investments between $200 million and $300 million into its prediction market enlargement in 2026. FanDuel Predict is being positioned as a manner to function nationally in states that prohibit conventional sports activities betting.

Taken collectively, capital is flowing into three layers concurrently: regulated exchanges, crypto venues, and now infrastructure instruments.

Roundhill simply filed for a bunch of ETFs that monitor prediction markets for political elections. Using occasion contracts. Potentially groundbreaking. If this goes by way of wow opens up large door to all types of stuff. Ht ⁦@Todd_Sohn⁩ pic.twitter.com/qmltjlguqn— Eric Balchunas (@EricBalchunas) February 13, 2026

A structural inflection level

Prediction markets have crossed from area of interest crypto experiment to a multi-billion-dollar monetary sector. Institutional buyers are committing capital. Traditional monetary gamers are coming into, and regulatory frameworks are solidifying.

The subsequent section could also be outlined by infrastructure sophistication.

If venues proceed to fragment throughout chains and jurisdictions, aggregation turns into important. If liquidity deepens, skilled instruments acquire leverage. If ETFs launch and institutional hedging grows, demand for execution high quality compounds.

Fireplace’s $1.5 million pre-seed spherical could also be small in contrast to billion-dollar platform raises. But strategically, it displays a broader shift: the ecosystem is constructing the plumbing.

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