Venture capital firm 5c(c) Capital is raising $35 million to back prediction market and event-trading startups, with backing from Polymarket, Kalshi, Andreessen Horowitz, Ribbit Capital, and investor Kyle Samani. This fundraising occurs as sector leaders like Kalshi secure major valuations and the industry faces growing scrutiny from U.S. lawmakers, prompting platforms to update their integrity policies.
A new venture capital firm is reportedly receiving significant funding support as interest in the prediction markets sector continues to grow. This comes as 5c(c) Capital plans to raise $35 million to invest in event-based trading startups.
The venture capital firm 5c(c) Capital has reportedly received support from various notable figures. These are Kalshi CEO Tarek Mansour, Polymarket CEO Shayne Coplan, a16z co-founder Marc Andreessen, Ribbit Capital’s Micky Malka, and former Multicoin Capital managing partner Kyle Samani. The firm will be headed by two former Kalshi employees, Noah Zingler-Sternig and Adhi Rajaprabhakaran.
This fundraising comes as the prediction markets sector is seeing continued investment. Kalshi has just raised another $1 billion in funding at a valuation of $22 billion, while Polymarket is said to be seeking funding at a similar valuation. Activity is also rising beyond the biggest platforms, with new startups entering the industry to serve existing operators.
However, the legal landscape is still in limbo in the United States, with regulators at the state level opposing prediction markets. CFTC Chairman Mike Selig has expressed support for properly structured event contracts, having co-authored an amicus brief with Kalshi.
There was an increase in pressure on the industry again on Monday. The Wall Street Journal reported that a bipartisan Senate effort to bar sports betting on prediction markets is being pushed forward by lawmakers. Kalshi CEO Tarek Mansour rebutted the effort in a post on X, claiming that “regulated prediction market platforms provide a better product.”
There was a policy update announced by Polymarket on Monday. The platform updated its terms of service and its integrity policy, aiming to enhance restrictions related to insider trading and market manipulation.
