Elastics raises $2M pre-seed to build AI OS for prediction markets

Elastics, which describes itself as an “AI predictive market operating system,” announced it has raised $2 million in an oversubscribed pre-seed round led by early-stage investor Frst.

Frst leads oversubscribed round into Elastics

According to details shared by Menlo Times and startup databases, the round includes participation from angels and operators across the AI and crypto ecosystem, including co-founders of voice-AI firm ElevenLabs, partners from crypto trading group XBTO, a co-founder of oracle project RedStone, and an a16z scout.

Elastics is headquartered in Warsaw and led by co-founders Szymon Pawica and Mateusz Brodowicz, who are positioning the company at the intersection of quant trading, large language models, and on-chain prediction infrastructure.

In its pre-seed announcement, the team said it intends to “democratize quantitative trading by equipping individual traders with AI-powered tools for automated research and execution” rather than limiting sophisticated prediction strategies to hedge funds.

“Trade with words” on an AI-native prediction OS

Elastics describes its product as an AI-native operating system for prediction markets “where you trade with words, and agents automate your trading,” suggesting a front end where users express views in natural language while backend agents translate those views into structured positions.

Those agents are designed to scan thousands of markets across platforms like Polymarket, Kalshi, and Limitless, track where conviction and liquidity are building, and then execute and adjust trades 24/7 based on changing probabilities and user-defined risk constraints.

Industry research cited by Elastics shows aggregate prediction-market volume growing 340% year-over-year to about $2.1 billion notional in 2024, as venues focused on macro, elections, and AI topics moved from niche experiments to what Galaxy Research has called “crypto’s first real consumer killer app.”

A recent crypto.news overview of the round argued that as prediction markets mature into sizable venues for pricing everything from Fed policy to cloud margins, there is a “clear gap” for tools that help non-quant users discover, size, and manage bets algorithmically.

Another crypto.news analysis noted that if weekly volumes on platforms like Polymarket consistently exceed $1.5 billion as some forecasts suggest, demand for AI-powered execution and risk systems like Elastics could mirror the rise of algo platforms in traditional futures and FX.