Kalshi Reports $2B Valuation Following Latest Funding Round
Kalshi has announced the successful completion of a $185 million funding round, significantly increasing its valuation to $2 billion. The round was led by Paradigm, a venture capital firm known for its investments in cryptocurrency and blockchain technologies. Notable additional participation came from established investment players, including Sequoia Capital, Multicoin Capital, and Peng Zhao, the CEO of Citadel Securities.
LISTEN TO THIS ARTICLE:Kalshi operates a blockchain-powered prediction market that allows users to place bets on the outcomes of real-world events such as elections, sports games, and judicial decisions. These types of wagers, known as event contracts, have surged in popularity in recent months, especially following the latest US presidential election. Users of platforms like Kalshi can trade contracts tied to specific outcomes, with pricing determined by market sentiment and user positions, creating a decentralized form of forecasting.
Related: Nevada Resort Association to Join Lawsuit Against Kalshi as Dismissal RejectedThe company has been steadily expanding its reach, particularly in sports-related markets. It reports that approximately 80% of its trading volume now stems from sports event contracts. This shift follows regulatory developments that enabled the firm to grow its offerings.
Last year, Kalshi won a legal battle against the US Commodity Futures Trading Commission (CFTC), allowing it to list contracts on presidential election outcomes, a category previously restricted by the agency. That legal victory played a significant role in boosting Kalshi's visibility and trading activity in politically-focused markets.
Despite federal approval via its CFTC license, Kalshi has encountered pushback from state-level gambling regulators in jurisdictions such as Nevada and New Jersey. These authorities argue that sports prediction markets fall under their purview and should be regulated accordingly. Kalshi maintains that its federal licensure permits nationwide operation, including for sports-related event contracts.
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Kalshi Rival Polymarket Also Finds Investors
Kalshi's funding milestone comes as its main competitor, Polymarket, is reportedly nearing the close of its own major funding round. According to reports, Polymarket is in the final stages of raising $200 million, with Founders Fund positioned as the lead investor. While that deal has yet to be finalized, it signals intensifying competition in the growing market for blockchain-based prediction platforms.
Polymarket operates in a similar space, offering event-based contracts on subjects ranging from geopolitical developments to sports outcomes. However, Polymarket has faced regulatory scrutiny and was previously accused of violating US trading laws, which led it to restrict access for US-based users.
The platform is reportedly in discussions with the CFTC to explore a path toward legal compliance in the US market. Outside the US, Polymarket remains restricted in several jurisdictions, including the United Kingdom, France, Belgium, Singapore, and Ontario.
Kalshi's co-founder and CEO, Tarek Mansour, stated that the newly acquired capital will be used to expand the company's technology team and facilitate deeper integration with brokerage platforms. Kalshi's services are already accessible through online brokerages like Robinhood Markets and Webull, and the company plans to secure more than a dozen additional integrations in the near future.
Kalshi investors appear optimistic about the long-term potential of these platforms, given their innovative application of blockchain technology to real-world forecasting. With Polymarket also attracting attention from prominent backers and forming partnerships, such as its recent agreement with X Corp. to serve as that platform's official prediction market, the competitive dynamics between the two firms are likely to intensify.
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