Exclusive: Early Kalshi employees raising up to $35 million for a prediction market VC fund with backing from the CEOs of both Kalshi and Polymarket

The CEOs of Kalshi and Polymarket are locked in a brutal fight to dominate the white-hot prediction market sector. But, in at least one instance, the two have put competition aside, and each has invested in an upcoming venture firm led by two early Kalshi employees. The fund, named 5c(c) Capital, is raising up to $35 million to invest in prediction market startups, according to a pitch document seen by Fortune.

The new venture firm’s name is a reference to a clause in the piece of legislation that outlined the federal regulation of commodities and derivatives, a category that now includes prediction markets. The fund’s partners are Adhi Rajaprabhakaran, the second trader hired to work at Kalshi’s affiliated market maker, and Noah Zingler-Sternig, Kalshi’s former head of operations.

In addition to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, the fund’s early backers are a star-studded........

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