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 secured $185 million in Series C funding, led by Paradigm, with additional 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 $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 leading investor for this round, while Sequoia, Multicoin, Bond Capital, Neo, and Citadel Securities’ CEO, Peng Zhao, also participated.

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 (CFTC), which allows them to list contracts on 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 provided different predictions than traditional survey methods.

Kalshi is still facing numerous legal disputes 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 was founded in 2018 by Mansour and Luana Lopes Lara, offering users the opportunity 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 introduced its own prediction hub early this year, and Polymarket, another platform, is set to close a $200 million funding round led by Peter Thiel’s Founders Fund, valuing it above $1 billion.

Polymarket, which blocks users from the US, utilizes cryptocurrencies and experiences higher trading activity as major global and economic events approach. Currently, markets are focusing on Middle East stability and the potential for a US recession in 2025. Even though Kalshi and Polymarket face regulatory issues, they still attract new users and investment, as investors and traders seek alternative methods to predict real-world event outcomes.