Key Highlights
5c(c) Capital seeks up to $35 million for a venture fund focused on prediction-market startups and infrastructure.
The Kalshi CEO and the Polymarket CEO are backing the fund as LPs, despite competing in the same market.
The fund will reportedly target about 20 companies over two years, focusing on liquidity, pricing, and market infrastructure.
A new venture fund focused on prediction markets is aiming to raise $35 million to back startups building around the fast-growing sector. The firm, 5c(c) Capital, was launched by former Kalshi employees and plans to invest across the broader infrastructure behind event-based trading platforms such as Kalshi and Polymarket.
Polymarket founder Shayne Coplan and Kalshi co-founder Tarek Mansour have invested as limited partners, even as their companies compete directly in prediction markets.
5c(c) Capital is led by Adhi Rajaprabhakaran and Noah Zingler-Sternig, both of whom previously worked closely with Kalshi. The fund’s name references Section 5c(c) of the U.S. Commodity Exchange Act, a legal provision tied to event contracts and prediction markets.
The fund is not focused only on consumer-facing trading platforms. It plans to invest in the surrounding infrastructure, including firms involved in liquidity, pricing, market-making, and other tools that support event-driven trading. Pitch materials reviewed by the press say the firm expects to build a portfolio of about 20 companies over the next two years.
Prediction markets draw more attention from both investors and regulators. Kalshi and Polymarket have expanded rapidly, but the sector is also facing growing scrutiny in the U.S., including fresh political and regulatory pressure around sports and event-based contracts.
