Kalshi and Polymarket Founders Launch $35M Fund for 20 Prediction Market Firms
5c(c) Capital, founded by Shayne Coplan and Tarek Mansour, aims to raise $35 million to back about 20 prediction-market startups over two years. Co-founder Noah Zingler-Sternig previously led Kalshi’s integration with Robinhood Markets, highlighting deeper ties between prediction markets and the brokerage platform.
1. Fund Launch and Goals
5c(c) Capital, named after the Commodity Exchange Act section on prediction markets, plans to raise up to $35 million to invest in roughly 20 early-stage prediction-market companies over the next two years. This fund represents the first dedicated VC vehicle focusing on platforms that enable betting on real-world events.
2. Founders and Key Backers
Shayne Coplan from Polymarket and Tarek Mansour from Kalshi spearhead the fund, joined by prominent investors including a portfolio manager at Millennium Management and Moneta Luna affiliates of Andreessen Horowitz. The pitch document also lists crypto-focused VCs and founders of firms such as PredictIt as early supporters.
3. Robinhood Integration Background
Noah Zingler-Sternig, one of the fund’s co-founders, previously served as head of operations at Kalshi and led the exchange’s integration with Robinhood Markets. His involvement underscores potential collaboration opportunities between prediction-market platforms and mainstream brokerage services.
4. Regulatory Context
Prediction markets operate under federal oversight by the Commodity Futures Trading Commission, which has defended exchanges in state-level legal challenges. The fund launch comes as these platforms face regulatory scrutiny for unlicensed gambling concerns in several jurisdictions.