Some of the biggest names in tech and crypto are backing 5c(c) Capital, a new venture firm that is raising $35 million to invest in prediction market startups, according to Fortune. Backers include the CEOs of the leading prediction markets, Polymarket and Kalshi.
The startup will be led by two early Kalshi employees, including former Head of Operations Noah Zingler-Sternig and former trader with Kalshi’s affiliated market maker Adhi Rajaprabhakaran, Fortune reported.
In addition to backing from Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, 5c(c) Capital has reportedly raised funds from a16z’s Marc Andreessen, Ribbit Capital’s Micky Malka, and former Multicoin Capital managing partner Kyle Samani.
5c(c) Capital refers to the clause in the Commodity Exchange Act that grants the Commodity Futures Trading Commission oversight of event contracts offered by Designated Contract Markets.
The move comes as investor funds and attention flood into the prediction market space. Kalshi recently raised another $1 billion at around a $22 billion valuation, as Polymarket reportedly also seeks to raise funds in the ballpark of that valuation.
A host of new startups are also launching to service existing prediction markets, some of which are becoming targets for acquisition, while others look to capitalize on similar betting trends. Established firms like Coinbase and DraftKings also see prediction platforms as a source for growth.
At the same time, the legal certainty of prediction markets is being called into question by state-level regulators in the U.S. This is despite assurances from CFTC Chairman Mike Selig, who co-authored an amicus brief in support of Kalshi, that properly structured event contracts fall within the CFTC’s remit.
Earlier Monday, The Wall Street Journal reported that lawmakers are moving to ban sports betting on prediction markets in a bipartisan Senate push.
“Casino lobby hard at work,” Mansour wrote in a post on X. There is a reason tens of millions of people use regulated prediction markets: it’s a better product. Banning just pushes this offshore, where no regulation exists. This bill isn’t about protecting consumers; it’s about protecting monopolies.”
On Monday, Polymarket also updated its terms of service and market integrity rules to strengthen prohibitions on insider trading and market manipulation.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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