Senior figures from Kalshi and Polymarket are backing a new venture fund aimed at building the infrastructure brokers would need to work with prediction markets.
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The fund, 5c(c) Capital, remains at an early stage. Its public presence is limited, with its website outlining the thesis and team but providing little detail on specific investments.
It is led by two former Kalshi employees, Adhi Rajaprabhakaran and Noah Zingler-Sternig, and focuses on supporting services around existing platforms. These include trading firms that provide liquidity, as well as data and analytics tools for market participants.
Backing From Across the Industry
The fund’s strategy reflects how the prediction market sector is evolving. Rather than competing only through new platforms, parts of the industry is building supporting infrastructure, including market-making firms, data providers and trading tools.
Zingler-Sternig previously worked on Kalshi’s integration with Robinhood, giving the team experience with brokerage connections and execution infrastructure.
The participation of Kalshi CEO Tarek Mansour and Polymarket founder Shayne Coplan is notable given that the two companies compete directly in several areas.
Other early investors include technology and finance figures such as Andreessen Horowitz co-founder Marc Andreessen and a portfolio manager from Millennium Management, as well as founders of other prediction market and fantasy sports platforms.
What It Means for Brokers
For brokers and fintech firms, the launch of the fund points to a shift in where development is happening. This includes liquidity providers, data distribution and execution tools — areas that are typically required before brokers can integrate new asset classes into their platforms.
Direct institutional trading in prediction markets is still limited. However, the emergence of a dedicated infrastructure fund suggests that the ecosystem around these markets is being built out with institutional use in mind.
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Early Stage, but Expanding
The sector remains early, and many of these services are still developing. At the same time, the scale of investment is increasing. Kalshi has reportedly raised more than $1 billion in new funding, valuing the platform at around $22 billion, according to people familiar with the matter.
Large financial institutions are also starting to engage with the space. JPMorgan, for example, is reviewing how employee activity on prediction markets fits within its compliance framework. Recent agreements involving Major League Baseball, Polymarket and the CFTC have introduced licensed data and closer coordination around market integrity.
Together, these developments suggest that prediction markets are starting to take a more structured form, even if integration into mainstream brokerage systems remains limited.
