New VC fund backs prediction market startups

A new venture capital firm, 5c(c) Capital, is launching with $35 million to invest in startups focused on prediction markets. The fund, backed by the CEOs of Polymarket and Kalshi, will support around 20 early-stage companies over two years. Investments will target infrastructure and services like data tools, liquidity, and compliance systems, rather than just exchanges. This initiative coincides with a significant growth phase for prediction markets, marked by increasing trading volumes and user engagement across various platforms.