Kalshi and Polymarket back $35 million fund as prediction markets boom despite regulatory pressure
Two former Kalshi employees are launching a $35 million fund, 5c(c) Capital, backed by leaders from Kalshi and Polymarket.Summary
Two early employees of Kalshi, Adhi Rajaprabhakaran and Noah Zingler Sternig, are raising up to $35 million for a new venture fund named 5c(c) Capital, which will focus on startups building around prediction markets. The fund has secured significant backing from industry competitors and major investors, including Kalshi CEO Tarek Mansour, Polymarket CEO Shayne Coplan, Marc Andreessen (via Moneta Luna), Ribbit Capital founder Micky Malka, and former Multicoin partner Kyle Samani. 5c(c) Capital plans to invest in about 20 companies over two years in areas like market making and infrastructure. This launch occurs while prediction markets are experiencing massive growth, with platforms like Kalshi and Polymarket reportedly seeking valuations in the tens of billions. However, the sector faces increasing regulatory scrutiny, with state authorities arguing these markets resemble sports betting, contrasting with the industry's view that they qualify as federally regulated financial products.
(Source：Crypto Briefing)