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 company, called 5c(c) Capital (named for a section of the Commodity Exchange Act that governs prediction markets) may be the first venture fund created specifically to invest in companies shaped by that regulatory and market structure.
“We want to capitalize on the second, third and fourth order effects of what we build ourselves,” the founders wrote in a document seen by Bloomberg.
The launch comes as prediction markets move from a niche part of finance to a more visible part of how people track events. Since the US presidential election, trading volumes have 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. Polymarket operations run on 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 commercial 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 initial bets tied to infrastructure and services around prediction markets rather than just exchanges.
Initial backing includes more than twenty investors, including a portfolio manager from 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.
