Kalshi and Polymarket leaders Support new VC Fund For Prediction Markets

Leaders from Kalshi and Polymarket have come together to support a new venture capital firm targeting the event contract economy, in a rare collaboration. The fund, 5c(c) Capital, was unveiled this week with backing from Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan.

According to its website: “5c(c) aims to allocate capital and provide expertise to the traders and tool-builders that will shape an entirely new ecosystem.”

The fund was founded by Adhi Rajaprabhakaran and Noah Zingler-Sternig, both former early employees at Kalshi. Rajaprabhakaran previously worked as a trader tied to Kalshi’s market making operations, while Zingler-Sternig led the company’s operations and their integrations with Robinhood.

The founders are targeting a $35m raise to support seed and early-stage companies building tools around event contracts.

Investor backing signals confidence in infrastructure layer

5c(c) Capital has attracted support from well-known figures across venture capital and financial technology. Early backers include Marc Andreessen through the Moneta Luna Fund, Micky Malka of Ribbit Capital, and Kyle Samani, previously of Multicoin Capital. Additional limited partners include Jeremy Levine and Jacob Fortinsky. 

The strategy centres on strengthening the operational backbone of prediction markets rather than competing directly with existing platforms. The fund plans to invest in around 20 companies over the next two years. Target areas include liquidity providers, data distribution, index designs, and execution tools.

While liquidity providers help stabilise order books, data distribution systems are used for improving settlement and verification processes. 

The fund is also looking at index design firms to create new tradable events and execution tools allowing brokerages to integrate prediction markets into their platforms.

Regulatory framing shapes identity of the fund

The name 5c(c) Capital is a direct reference to Section 5c(c) of the Commodity Exchange Act, titled “New Contracts, New Rules.” This signals the fund’s view that innovation in prediction markets must be tied to workable regulatory structures.

In the United States, activity around prediction markets is monitored by the Commodity Futures Trading Commission, which has been issuing guidance as the category expands.

Kalshi has taken a regulated approach within the US, operating under federal oversight. Polymarket has followed a different path, building a crypto-native platform that serves a global audience.

Rising valuations underline momentum in prediction markets

The launch of 5c(c) Capital comes during a period of rapid expansion for the sector. Kalshi reportedly reached a valuation of $22bn in early 2026, while Polymarket climbed to around $20bn following investment from Intercontinental Exchange.

These figures reflect increasing participation, deeper liquidity and growing visibility for event-based trading. Investors are beginning to view prediction markets as a distinct segment within financial technology.

In pitch materials, the fund describes the space as an “intergenerational investment opportunity,” pointing to its potential to reshape how risk is priced and traded.

The joint backing from Kalshi and Polymarket stands out given the competitive nature of the sector. Both platforms continue to operate independently, yet they are supporting efforts to build strong foundations.