A new venture capital firm focused on prediction markets is launching with backing from Polymarket founder and CEO Shayne Coplan and Kalshi co-founder and CEO Tarek Mansour, Bloomberg reported.
The firm, called 5c(c) Capital (named after a section of the Commodity Exchange Act that regulates prediction markets) may be the first venture fund built specifically to invest in companies shaped by this regulatory and market structure.
“We want to harness the effects of the second, third and fourth order of what we built ourselves,” the founders wrote in a document seen by Bloomberg.
The launch comes as prediction markets shift from a niche corner of finance to a more visible part of how people track events. Since the US presidential election, trading volume has increased and new users have entered the space. Platforms like Polymarket and Kalshi now host contracts linked to politics, economic data and cultural events, turning public opinion into tradable signals. Polymarkets trades run 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.
That growth has created new business openings 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 about 20 portfolio companies over the next two years, according to the filing. The strategy focuses on early bets linked to infrastructure and services around prediction markets rather than the exchanges alone.
Early backing includes more than twenty investors, among them a portfolio manager at Millennium Management, several crypto-focused venture firms, and founders of other prediction market platforms such as PredictIt.
Polymarket declined to comment. Kalshi did not respond in time for publication.
