The fundraising round follows legal progress and increased investor interest in event-driven trading, with rival Polymarket also nearing a major deal.
Key Points
- Kalshi got $185 million in Series C funds led by Paradigm with extra support from Sequoia, Multicoin, Neo, Bond Capital, and Peng Zhao.
- This round makes the value of the event contracts platform reach $2 billion.
- Polymarket almost finishes a $200 million funding round headed by Founders Fund, pushing its valuation to more than $1 billion.
Kalshi has managed to raise an amount of $185 million in Series C funding, which sets the event trading platform’s valuation at $2 billion, according to CEO Tarek Mansour’s announcement. Paradigm became the main investor for this round, while Sequoia, Multicoin, Bond Capital, Neo, and Citadel Securities CEO Peng Zhao also took part.
Kalshi Expands Regulated Election Betting Amid Legal Battles and Rising Market Interest
The platform’s fundraising comes soon after Kalshi won a court decision over the Commodity Futures Trading Commission, or CFTC, which lets them list contracts about US election results. This action has now made it possible to offer wider contract options, so Kalshi stands as a regulated version compared to informal betting sites. Interest in these contracts picked up again during the 2024 US presidential election as prediction markets showed different predictions than old survey methods.
Kalshi is still dealing with many legal arguments with regulators from various states. In April, the company went to court to ask for a restraining order against the Maryland gaming regulator after receiving a stop order. Kalshi also just opposed an amicus brief from tribal groups, calling the paperwork “untimely and unhelpful.” Kalshi started in 2018, founded by Mansour and Luana Lopes Lara, giving users the chance to trade based on real event outcomes.
Prediction Markets Gain Momentum amid Regulatory Uncertainty and Investor Interest
While waiting for better legal rules in parts of the US, more people are showing interest in prediction markets. Robinhood brought out its own prediction hub early this year, and Polymarket, another platform, will soon close a $200 million funding round led by Peter Thiel’s Founders Fund, setting its value above $1 billion.
Polymarket, which blocks users from the US, uses cryptocurrencies and has higher trading activity as major world and economic events draw near. Right now, markets focus on Middle East stability and the chance of a US recession in 2025. Even though Kalshi and Polymarket face rule problems, they still bring in new users and investment as investors and traders want different ways to predict real-world event outcomes.