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5c(c) Capital Targets Up to $35 Million for Prediction Market Startup Investments

5c(c) Capital Targets Up to $35 Million for Prediction Market Startup Investments

According to the new report, 5c(c) Capital plans to back about 20 prediction market startups over two years as the sector shows growing user activity and open interest.

Fact Check
The statement is directly supported by a primary report from Fortune ('Exclusive: The CEOs of Kalshi and Polymarket are arch rivals...'). The report details that 5c(c) Capital is raising $35 million, was founded by two former Kalshi employees (Adhi Rajaprabhakaran and Noah Zingler-Sternig), and has secured investments from the CEOs of both Kalshi and Polymarket, alongside other prominent VCs like Marc Andreessen.
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Summary

5c(c) Capital is raising up to $35 million for a venture fund focused on prediction market startups, with support from Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan. The new information adds that the fund plans to invest in about 20 companies over the next two years. It also provides broader market context, citing Dune data showing prediction markets had 2.8 million cumulative users and $924 million in open interest as of March 24.

Terms & Concepts
  • Prediction market: A marketplace where participants trade on the outcome of future events, with prices often interpreted as collective probability estimates.
  • Open interest: The total value or number of outstanding active positions in a market, used to indicate current market participation and exposure.
  • Kalshi: A prediction market platform whose CEO, Tarek Mansour, is backing the 5c(c) Capital fund.