A new venture capital firm focused on prediction markets is launching with the backing of Polymarket founder and CEO Shayne Coplan and Kalshi co-founder and CEO Tarek Mansour, Bloomberg reported.
The company, called 5c(c) Capital (named after a section of the Commodity Exchange Act that governs prediction markets) could be the first venture fund created specifically to invest in companies shaped by this regulatory and market structure.
“We want to capitalize on the second, third and fourth order effects of what we have built ourselves,” the founders wrote in a document seen by Bloomberg.
The launch comes as prediction markets move from a niche sector of finance to a more visible part of how people follow events. Since the US presidential election, trading volumes have increased and new users have entered the space. Platforms such as Polymarket and Kalshi now host contracts linked to politics, economic data and cultural events, transforming public opinion into tradable signals. Polymarket transactions are carried out on the blockchain. Many crypto-native companies, including Coinbase (COIN) and Kraken, as well as Robinhood (HOOD), have also entered the space in recent months.
This growth has created new business opportunities beyond the platforms themselves. Startups are beginning to build data tools, liquidity services, and compliance systems that support these markets.
5c(c) Capital plans to raise up to $35 million and invest in around 20 portfolio companies over the next two years, according to the document. The strategy focuses on early stage bets related to infrastructure and services around prediction markets rather than just exchanges.
The first backer includes more than twenty investors, including a portfolio manager at Millennium Management, several crypto-focused venture capital firms, and the founders of other prediction market platforms such as PredictIt.
Polymarket declined to comment. Kalshi did not respond in time for publication.
