Two former Kalshi employees are leading a $35 million fund, 5c(c) Capital, to support startups in the prediction market space. The fund has drawn backing from industry leaders, including Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, as well as top venture investors.
The fund, led by Adhi Rajaprabhakaran and Noah Zingler Sternig, focuses on market making, prediction indices, and infrastructure. It plans to invest in about 20 companies over the next two years.
Prediction markets are growing in popularity, with Kalshi reportedly seeking $1 billion at a $22 billion valuation and Polymarket targeting a $20 billion valuation. However, regulators are increasingly scrutinizing the sector, raising concerns over its similarity to sports betting.