Former Kalshi employees are raising up to $35 million for a new venture fund, 5c(c) Capital, focused on building infrastructure for prediction markets.
The fund plans to deploy capital across around 20 startups over the next two years, targeting market makers, index design, and core tooling for event-driven trading.
“What we’re seeing now is investors underwriting the rails and tools that make these markets possible, not just the flagship venues,”
Said a person involved in the raise.
Backers include Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, alongside investors linked to Andreessen Horowitz, Ribbit Capital, and Multicoin Capital.
The move comes as prediction markets gain traction, with Kalshi processing approximately $9.8 billion in February trading volume compared with Polymarket’s roughly $7.6 billion.
The broader sector reached about $23.4 billion in activity, driven in part by short-term crypto-linked contracts that blur the line between trading and speculation.
5c(c) Capital’s strategy reflects a shift toward building foundational infrastructure, betting that prediction markets will evolve into a layered ecosystem similar to traditional financial exchanges.