US EditionPrediction market boom spurs new VC fund backed by Polymarket, Kalshi CEOs
5c(c) Capital aims to invest $35 million in about 20 startups building infrastructure for prediction markets amid growing sector interest, backed by Kalshi and Polymarket CEOs.
- Despite their intense market rivalry, Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan have invested in 5c Capital, a new venture fund raising $35 million to support prediction market startups.
- Both platforms are valued at $22 billion and $20 billion, respectively, as prediction markets expand beyond niche finance to track elections, economic data, and cultural events.
- Led by former Kalshi employees Adhi Rajaprabhakaran and Noah Zingler-Sternig, the fund plans to invest in about 20 companies over two years, targeting infrastructure and services around prediction markets.
- Named after a Commodity Exchange Act clause, the firm attracted notable investors including Marc Andreessen and Ribbit Capital founder Micky Malka, who describe prediction markets as a "generational investment opportunity."
- Regulatory scrutiny threatens growth prospects, with the Arizona Attorney General filing criminal charges against a prediction platform last week amid broader questions about platform legality.
15 Articles
15 Articles
New VC fund to focus on prediction markets
The launch of a new venture capital fund focused on prediction markets underscores the rapid growth of the nascent industry. The founders of the two biggest platforms, Kalshi and Polymarket, are among the investors in 5c(c) Capital, which plans to raise up to $35 million, with some 20 companies in its portfolio over the next two years, Bloomberg reported.Prediction markets have taken off in recent years, allowing people to bet on real-world even…
Early Kalshi employees raising up to $35 million for a prediction market VC fund with backing from the CEOs of both Kalshi and Polymarket
The CEOs of Kalshi and Polymarket are locked in a brutal fight to dominate the white-hot prediction market sector. But, in at least one instance, the two have put competition aside, and each has invested in an upcoming venture firm led by two early Kalshi employees. The fund, named 5c(c) Capital, is raising up to $35 million to invest in prediction market startups, according to a pitch document seen by Fortune. The new venture firm’s name is a r…
Rival CEOs Back New Fund Focused on Prediction Market Infrastructure
Senior figures from Kalshi and Polymarket are backing a new venture fund aimed at building the infrastructure brokers would need to work with prediction markets. Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)The fund, 5c(c) Capital, remains at an early stage. Its public presence is limited, with its website outlining the thesis and team but providing little detail on specific investments. It is led by two f…
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