Elastics secures $2M pre-seed to develop AI-powered prediction market tools

Elastics, a company building an AI-native operating system for prediction markets, has announced the close of a $2 million pre-seed funding round. The funding will support the development of its suite of AI-driven tools that enable automated trading and decision-making on prediction markets. The company did not disclose any named lead investors for the round.

Elastics’ platform is designed to empower traders in prediction markets, which allow participants to bet on the outcomes of real-world events, such as elections, sports results, or financial indicators. By leveraging AI, Elastics simplifies trading workflows through advanced automation, natural language processing, and unified market access. Its core offerings include AI agents that analyze market signals, execute trades, and adjust strategies in real time, as well as tools that aggregate cross-platform data and provide actionable insights for traders.

The funds will be used to refine Elastics’ platform, known as Elastics OS, which provides a centralized interface for prediction market trading. Key features of the system include non-custodial trading, low-latency execution, and cross-market discovery, making it particularly appealing for institutional users and serious retail traders. Elastics also plans to further enhance its AI agents, which allow users to define trading strategies and automate their execution with continuous monitoring and control.

Prediction markets have gained traction as a niche but powerful financial tool, offering unique insights into collective expectations across sectors like politics, sports, and cryptocurrency. By streamlining access to these markets and automating complex strategies, Elastics aims to position itself as a leader in this emerging space. The platform currently supports trading on venues like Polymarket and Kalshi, connecting both decentralized finance (DeFi) and centralized finance (CeFi) systems in a unified trading environment.

The startup’s non-custodial approach ensures users retain control of their funds while benefiting from AI-driven decision support. With tools to simulate, test, and execute trades, Elastics hopes to lower barriers for traders aiming to leverage prediction markets for alpha generation and risk management.

Though still in its early stages, Elastics’ technology has the potential to reshape how individuals and institutions engage with prediction markets. By integrating AI into trading workflows, the company seeks to deliver an edge to its users in a growing yet underexplored sector.