A former Kalshi employee plans to raise $35 million to establish a prediction market venture capital fund, with support from Kalshi and the CEO of Polymarket.

According to a report by Fortune magazine, early Kalshi employees Adhi Rajaprabhakaran and Noah Zingler-Sternig are launching a venture capital fund called 5c(c)Capital, aiming to raise up to $35 million. The fund will focus on investing in prediction market startups and plans to invest in approximately 20 companies over the next two years. The fund's name is derived from relevant provisions of the U.S. Federal Commodity and Derivatives Regulations. The fund has already secured funding from Kalshi CEO Tarek Mansour, Polymarket CEO Shayne Coplan, venture capitalist Marc Andreessen (through Moneta Luna Fund), Ribbit Capital founder Micky Malka, and former Multicoin Capital managing partner Kyle Samani. The fund is expected to complete its first round of fundraising next month.