A new venture capital firm focused on prediction markets is being launched with the backing of Polymarket founder and CEO Shayne Coplan and Kalshi co-founder and CEO Tarek Mansour, Bloomberg reports.
The company, called 5c(c) Capital (named after the section of the Commodities Exchange Act that governs prediction markets), may be the first venture fund to invest exclusively in companies affected by that regulation and market structure.
“We want to capitalize on the second-, third- and fourth-order effects of the products we build ourselves,” the founders wrote in a document seen by Bloomberg.
The launch comes as prediction markets move from a niche corner of finance to a more visible part of how people track events. Since the U.S. presidential election, trading volumes have continued to climb and new users have entered the space. Platforms such as Polymarket and Kalshi now host contracts related to political, economic data and cultural events, turning public opinion into tradable signals. Polymarket’s transactions run on the blockchain. A number of crypto-native companies have also entered the space in recent months, including Coinbase (COIN) and Kraken, as well as Robinhood (HOOD).
This growth creates new business opportunities beyond the platform itself. Startups are starting to build the data tools, liquidity services and compliance systems that support these markets.
5c(c) Capital plans to raise up to $35 million over the next two years and invest in about 20 portfolio companies, the filing said. The strategy focuses on early bets related to the infrastructure and services surrounding prediction markets, not just exchanges.
Early support includes more than two dozen investors, including portfolio managers from Millennium Management, several cryptocurrency-focused venture firms, and the founders of other prediction market platforms such as PredictIt.
Polymarket declined to comment. Kalsi did not respond in time for publication.
