Two former employees of Kalshi are raising up to $35 million for 5c(c) Capital, a venture fund dedicated to the prediction markets sector, with backing from the CEOs of both Kalshi and Polymarket as well as a16z.
The fund's formation underscores growing institutional confidence in prediction markets following regulatory developments that have legitimized event-based derivatives trading in the United States. Kalshi, the primary venue for regulated prediction contracts on U.S. events, and Polymarket, the leading decentralized prediction platform, have both expanded significantly in recent years as retail and institutional participants increasingly use these platforms for information aggregation and hedging.
5c(c) Capital's focus on prediction markets represents a concentrated bet on what backers view as an emerging asset class with substantial long-term potential. The involvement of both Kalshi and Polymarket leadership suggests a unified industry view that the prediction market ecosystem requires dedicated capital and infrastructure development to achieve mainstream adoption.