Kalshi, the regulated crypto prediction market platform, has secured a $2 billion post-money valuation following its $185 million Series C funding round led by crypto investment firm Paradigm. The round also saw participation from top-tier investors including Sequoia Capital, Multicoin Capital, Neo, Bond Capital, and Citadel Securities.
CEO Tarek Mansour took to X (formerly Twitter) to share the milestone, emphasizing Kalshi’s long-term vision: “People choose to work at Kalshi not because of the money we’ve raised, but because of our ambition: to build the most important financial market on the planet.”
Backed by Major Crypto Players
Paradigm’s Matt Huang likened the potential of prediction markets to the early days of cryptocurrency, calling them a “nascent asset class on a path to trillions.” Kalshi plans to use the new capital to scale its technology team and deepen integrations with broker platforms. It already partners with Robinhood Markets and Webull, allowing users access to its regulated contracts.
Regulatory Edge Over Rivals
The timing of Kalshi’s funding is notable, as competitor Polymarket is also in the process of raising $200 million at a $1 billion pre-money valuation, led by Founders Fund. However, Kalshi currently has a regulatory edge. While Polymarket is banned from operating in the U.S. and restricted in several other countries, Kalshi is legally authorized by the U.S. Commodity Futures Trading Commission (CFTC).
Despite this advantage, Kalshi is facing some regulatory challenges of its own. State regulators in Nevada and New Jersey are opposing its sports betting markets, arguing that sports wagers should fall under state—not federal—oversight. Additionally, the CFTC recently reviewed Kalshi’s Super Bowl event contracts alongside those of Crypto.com, seeking clarity on derivative compliance.
Market Trends and Shifts
Although crypto prediction markets saw a surge in volume during the 2024 U.S. elections, post-election activity has cooled. Polymarket’s May trading volume fell to $1.1 billion, down sharply from its $2.5 billion peak in November, according to Dune Analytics.
In response to changing trends, Kalshi has shifted its focus to sports-related markets, which accounted for nearly 80% of its trading volume in March and April.
