Polymarket and Kalshi Founders Launch 5c(c) Capital to Back the Next Wave of Prediction Market Startups

Polymarket CEO Shayne Coplan and Kalshi co-founder Tarek Mansour are joining forces to launch a new venture capital firm targeting the rapidly growing prediction markets ecosystem. According to Bloomberg, the fund is called 5c(c) Capital, a name drawn directly from the section of the Commodity Exchange Act that regulates prediction markets, signaling its deep roots in the space.

The pair describe their ambition as capitalizing on the downstream effects of the infrastructure they helped create. Rather than doubling down on exchange platforms, 5c(c) Capital intends to back the startups building around them, including data analytics tools, liquidity solutions, and compliance technology that the broader prediction market industry now needs to scale.

The fund is targeting up to $35 million in capital across roughly 20 early-stage investments over a two-year horizon. More than twenty investors have already committed, including a portfolio manager from Millennium Management, several crypto-native venture firms, and founders from platforms like PredictIt.

The launch reflects a broader transformation in how prediction markets are perceived. Once considered a fringe corner of finance, platforms like Polymarket and Kalshi have seen surging trading volumes following the 2024 U.S. presidential election. Contracts tied to political outcomes, economic indicators, and cultural moments have drawn in a new wave of participants, turning real-world events into tradable markets. Coinbase, Kraken, and Robinhood have each entered the space, further validating its momentum.

Polymarket operates on blockchain infrastructure, while Kalshi functions as a federally regulated exchange, giving both founders a uniquely broad view of the regulatory and technical landscape. That experience positions 5c(c) Capital to spot opportunities others may overlook in a market that is still in its earliest stages of maturation.