A new venture capital firm called 5c(c) Capital is launching with a specific focus on companies built around prediction markets. The fund has secured backing from the chief executives of Polymarket and Kalshi, two prominent players in the prediction market space. The launch signals growing institutional interest in an area that has seen rapid expansion in recent years.
The fund is targeting a raise of up to $35 million and plans to support approximately 20 early-stage startups over a two-year period. Rather than concentrating solely on exchanges, 5c(c) Capital intends to invest across the broader ecosystem, including infrastructure and supporting services. Areas of focus include data tools, liquidity provision, and compliance systems.
The firm has already attracted more than 20 early investors ahead of its formal launch. Among those backing the fund is a portfolio manager at Millennium Management, alongside several founders active in the prediction market sector. The breadth of early support reflects widening interest from both traditional finance and crypto-native communities.
The launch comes at a time when prediction markets are experiencing notable growth across multiple dimensions. Trading volumes have risen, new users are entering the space, and major crypto and retail trading platforms have begun exploring the sector. This expanding activity has created demand for the kind of supporting infrastructure that 5c(c) Capital intends to fund.
By targeting early-stage companies rather than established exchanges, the fund positions itself to capture value from the foundational layer of the prediction market industry. Investments in compliance systems and liquidity tools, for example, could serve a wide range of platforms as the sector matures. The strategy reflects a view that the ecosystem around prediction markets remains underdeveloped relative to the growth of the markets themselves.
Originally reported by CoinDesk.
