A freshly launched venture capital fund is turning the spotlight on prediction markets, backed by two of the industry’s most prominent figures. Shayne Coplan, the founder of Polymarket, and Tarek Mansour, the founder of Kalshi, are at the forefront of this new fund, aiming to provide essential capital to companies in the sector. Both entrepreneurs have made their mark by establishing innovative platforms that significantly shaped the digital asset ecosystem through prediction markets.
New Fund Draws Inspiration from Regulatory Landscape
Named 5c(c) Capital, the fund takes its title from a specific clause in the U.S. Commodity Exchange Act regulating prediction markets. Its core strategy is to invest in companies influenced by prediction market regulations and market structure. Drawing on insights gained from their own platforms, the founders seek to capitalize on second-order and subsequent effects emerging in this growing space.
Prediction markets have recently become a more dynamic and visible segment of the financial world. The surge in trading volumes and user participation has been especially pronounced in the wake of the U.S. presidential elections. Platforms like Polymarket and Kalshi host contracts tied to politics, economics, and culture, transforming public sentiment into signals that can be traded on the open market. Transactions on Polymarket take place via blockchain technology. In addition, major crypto companies including Coinbase and Kraken, along with the trading app Robinhood, have shown increasing interest in the sector.
Prediction Market Ecosystem Broadens
The heightened attention to prediction markets has spurred the emergence of new business models within the ecosystem. It’s no longer just about the marketplaces themselves—startups offering data tools, liquidity services, and compliance solutions are gaining traction. Instead of focusing solely on exchanges, 5c(c) Capital plans to invest in early-stage companies developing the vital infrastructure and services underpinning prediction markets.
Over the next two years, the fund aims to back around 20 companies, targeting a total capital pool of up to $35 million. Its investment strategy prioritizes complementary sectors likely to drive overall industry growth.
Alongside the founding partners, other notable supporters include a portfolio manager from Millennium Management, several crypto-focused funds, and the founders of other prediction market ventures. Initial funding has reportedly been secured from more than twenty investors in the inaugural round.
No public comment regarding the fund has been provided by Polymarket. Kalshi had not issued an official response by press time.
