Elastics, a startup building AI-driven infrastructure for prediction markets, has raised €1.7 million in an oversubscribed pre-seed round.
The funding was led by French venture firm Frst, with participation from a group of angel investors including founders, operators, and quantitative finance specialists. The capital will be used to expand the company’s team in Poland, with a focus on AI and quantitative engineering talent.
What The Company Does
Founded in 2025 by CEO Szymon Pawica and CTO Mateusz Brodowicz, Elastics is developing an AI-native platform designed to automate trading workflows in prediction markets. Its system is built around auditable AI agents that allow users to create, test, and execute strategies using natural language inputs.
The platform covers the full trading process, from signal generation and data analysis to execution and portfolio management. By automating these steps, Elastics aims to reduce the complexity typically associated with quantitative trading.
The company positions its product as an operating system for prediction markets, enabling users to interact with financial data and trading strategies without requiring deep technical expertise.
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Market Context / Industry Background
In this evolving landscape, the integration of AI-driven tools into prediction markets could significantly lower barriers to entry for individual participants. Machine learning models can assist in identifying patterns across vast datasets, including news sentiment, historical trends, and real-time market signals, which would otherwise be difficult to process manually. As a result, retail traders may increasingly rely on algorithmic support to inform their decisions and optimize their strategies.
However, this shift also raises important questions about market efficiency and fairness. If advanced AI tools become widely available, competition could intensify, potentially reducing profit margins while increasing market liquidity. At the same time, differences in the quality of models and data access may still create disparities between participants.
Ultimately, the intersection of prediction markets and artificial intelligence reflects a broader transformation in financial markets, where technology continues to reshape participation, strategy, and the distribution of informational advantages.
Regulatory considerations will also play a crucial role in shaping the future of prediction markets. As these platforms grow, authorities may seek to establish clearer frameworks regarding their classification, particularly in relation to gambling, financial securities, or hybrid models. This uncertainty can influence both platform development and user adoption, as participants may be hesitant to engage in environments lacking legal clarity. Furthermore, ethical concerns surrounding the use of AI, such as transparency, accountability, and potential manipulation, are likely to become more prominent, especially as automated systems begin to influence market behavior at scale.
Founder / Investor Commentary
Chief executive Szymon Pawica said the advantage of quantitative funds is largely driven by access to specialised talent and infrastructure, which the company believes can increasingly be replicated through AI systems. He argued that these capabilities can be made more widely accessible through automation.
Pierre Entremont, co-founder and partner at Frst, described prediction markets as an emerging asset class still in an early stage of development. He said Elastics is building an AI layer designed to support this market while lowering barriers to entry for individual participants.
Growth Plans / Use Of Funds
The newly raised funding will be used to hire engineers and researchers in artificial intelligence and quantitative modelling. The company plans to continue developing its core platform, with a focus on improving automation, scalability, and usability.
Elastics is also expected to expand its capabilities beyond prediction markets over time, applying its AI agent framework to broader financial trading and data-driven decision environments.
About Elastics
Elastics is an AI company building autonomous agents for prediction markets and financial trading. Founded in 2025 and headquartered in Warsaw, the company develops tools that automate research, execution, and portfolio management, with the goal of making quantitative trading infrastructure more accessible to individual users.
