The launch of a new venture capital fund focused on prediction markets underscores the rapid growth of the nascent industry.
The founders of the two biggest platforms, Kalshi and Polymarket, are among the investors in 5c(c) Capital, which plans to raise up to $35 million, with some 20 companies in its portfolio over the next two years, Bloomberg reported.
Prediction markets have taken off in recent years, allowing people to bet on real-world events, like elections and sports.
They’ve drawn the ire of US state regulators who argue they are essentially unlicensed sports gambling sites, and some lawmakers in Washington want more regulation. A new bill proposed in the Senate would outlaw sports betting on Kalshi and Polymarket.