Polymarket and Kalshi CEOs back new prediction market VC fund

Summary

5c(c) Capital, a new venture capital firm focused on the “event contract” economy, has launched with backing from key figures across the prediction market sector — notably Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan. Founded by former Kalshi employees Adhi Rajaprabhakaran and Noah Zingler-Sternig, the fund is targeting a $35m raise to back roughly 20 seed and early-stage companies building the infrastructure that underpins prediction markets.

Author style: Punchy — this is more than a niche fund; it signals serious investor faith in the plumbing of prediction markets and a conscious play to align innovation with regulation.

Key Points

5c(c) Capital launched to invest in companies serving the event contract economy (prediction-market infrastructure).
Founders are Adhi Rajaprabhakaran and Noah Zingler-Sternig, both ex-Kalshi employees; the fund aims to raise $35m.
Top-level support includes Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, plus backers from fintech and crypto such as Marc Andreessen (Moneta Luna Fund), Micky Malka (Ribbit), and Kyle Samani.
Planned investments (about 20 companies over two years) will focus on liquidity providers, data distribution, index design and execution tools.
The fund name references Section 5c(c) of the Commodity Exchange Act — emphasising the role of workable regulation alongside product innovation.
Launch comes as the sector’s headline platforms see soaring valuations (Kalshi ~ $22bn; Polymarket ~ $20bn), and regulatory scrutiny is increasing.

Content summary

5c(c) Capital positions itself as a specialist investor in the mechanics that make prediction markets usable and scalable. Rather than chasing consumer-facing growth alone, the fund will prioritise firms that strengthen liquidity, speed and reliability of settlements, event indexing and tools enabling brokerages and venues to integrate event contracts.

Founders Rajaprabhakaran and Zingler-Sternig bring trading and operations experience from Kalshi; their pitch highlights an “intergenerational investment opportunity” and argues the category can reshape risk trading. Early limited partners give the fund cross‑sector credibility from fintech and digital-asset communities.

Context and relevance

This matters because prediction markets are moving from niche experiments to mainstream fintech infrastructure. Big valuations for Kalshi and Polymarket have attracted institutional attention, but long-term growth depends on reliable liquidity, standardised data, and regulatory clarity — exactly the areas 5c(c) plans to fund.

For investors, builders and regulators, the fund signals a shift: backers want to fund the plumbing rather than just the front‑end marketplaces. That could accelerate product maturity, ease integrations with traditional brokerages, and influence how regulators think about new contract types.

Why should I read this?

Quick and blunt — big names just put money behind the back‑end of prediction markets. If you care about where trading infrastructure, fintech innovation or regulatory-friendly crypto/derivatives go next, this is the kind of move that changes who wins. Short version: it’s worth a skim if you want to know where the real bets are being placed.