# Early Kalshi staff launch 5c(c) Capital fund targeting prediction

**Published:** 2026-03-23T07:00:00.000Z  
**Topic:** Stock Market%5C  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/7bec1aa2-8f09-43f9-bff5-d5ee308536eb

Former Kalshi employees raise up to $35 million for 5c(c) Capital, a venture fund aimed at prediction‑market startups, backed by industry rivals and top VCs.

Early Kalshi employees are spearheading a new venture fund, 5c(c) Capital, that aims to raise as much as $35 million to back startups in the fast‑growing prediction‑market sector [1]. The fund’s partners, former Kalshi trader Adhi Rajaprabhakaran and ex‑operations head Noah Zingler‑Sternig, have attracted backing from both Kalshi and Polymarket CEOs as well as prominent venture investors [1].

**Key takeaways**  
- 5c(c) Capital targets around 20 prediction‑market companies over the next two years [1].  
- Early investors include Kalshi CEO Tarek Mansour, Polymarket CEO Shayne Coplan, Andreessen Horowitz (via Moneta Luna), Ribbit Capital founder Micky Malka, and Multicoin Capital’s Kyle Samani [1].  
- The fund’s name references a commodities‑regulation clause that now covers prediction markets [1].  
- Kalshi is currently raising a $1 billion round at a $22 billion valuation, while Polymarket seeks a similar $20 billion valuation [1].  
- Legal challenges persist, with Kalshi facing federal lawsuits and state actions over its sports‑betting offerings [1].

## Building a venture pipeline for prediction markets  
The venture firm’s moniker, 5c(c) Capital, alludes to a specific clause in the legislation that governs commodities and derivatives, a category that now embraces prediction markets [1]. According to a pitch deck reviewed by Fortune, the partners plan to back roughly 20 companies in the next two years, focusing on market makers, designers of prediction‑market indices, and related infrastructure [1]. The first close of the fund is expected within a month, signaling rapid momentum for the nascent sector [1].

Backers span rival prediction‑market platforms and heavyweight venture firms. Kalshi’s chief executive Tarek Mansour and Polymarket’s chief executive Shayne Coplan have both pledged support, illustrating a rare collaboration amid their competitive race for market dominance [1]. Additional investors include Marc Andreessen’s venture vehicle Moneta Luna, fintech investor Ribbit Capital founder Micky Malka, and former Multicoin Capital managing partner Kyle Samani [1]. Statements from the involved parties confirm their participation, though some, such as Andreessen Horowitz, declined comment [1].

## Why it matters  
The launch of 5c(c) Capital underscores the escalating interest in prediction markets, a sector that has attracted billion‑dollar valuations despite regulatory headwinds. Kalshi’s ongoing $1 billion fundraising and Polymarket’s comparable valuation target highlight the market’s perceived growth potential [1]. At the same time, state and federal challenges—ranging from lawsuits questioning Kalshi’s legality to accusations that prediction markets amount to sports gambling—create an uncertain regulatory backdrop [1]. By aggregating capital and expertise, 5c(c) Capital aims to nurture the next generation of infrastructure and products that could shape how these markets evolve, potentially influencing both the financial and regulatory landscape in the years ahead.

## Sources
1. Fortune — [Early Kalshi employees raising up to $35 million for a](https://fortune.com/2026/03/23/kalshi-polymarket-5cc-capital-prediction-market-fund-raise/)
2. Fortune — [Elon Musk reclaims world's richest person title | Fortune](https://fortune.com/2021/02/18/elon-musk-worlds-richest-person-title-jeff-bezos/)
3. Fortune — [Trump’s ‘Liberation Day’ tariffs crash markets and send](https://fortune.com/asia/2025/04/03/who-got-highest-trump-tariffs-asia-china-vietnam-japan-markets/)

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Cite as: TrendWatcher, "Early Kalshi staff launch 5c(c) Capital fund targeting prediction", https://www.trendwatcher.in/article/7bec1aa2-8f09-43f9-bff5-d5ee308536eb