A new venture capital firm, 5c(c) Capital, is set to launch with a goal of raising $35 million to invest in startups focused on the burgeoning prediction market sector. Backed by the CEOs of Polymarket and Kalshi, the fund aims to support around 20 early-stage companies over the next two years, emphasizing infrastructure and services such as data tools and compliance systems rather than just trading platforms.
The emergence of 5c(c) Capital coincides with a significant uptick in trading volumes and user engagement in prediction markets, driven by platforms like Polymarket and Kalshi that allow users to trade on events ranging from political outcomes to economic indicators. This growing interest has attracted a diverse group of investors, including those from Millennium Management and other crypto-focused firms, indicating a broader acceptance of prediction markets in the financial landscape.
For market professionals, the launch of 5c(c) Capital signals a potential shift in investment strategies, as infrastructure and ancillary services around prediction markets gain traction, opening new avenues for growth in this evolving sector.
Source: coindesk.com